Law Required SSDI Deductions Regardless of Qualification for Social Security

The state of North Carolina may subtract from a retired school teacher's disability retirement checks the amount she would have received had she qualified for Social Security disability benefits, the Court of Appeals of North Carolina decided last week. The appellate court said it doesn't matter that Stephanie Trejo applied for Social Security benefits and was turned down. That arrangement may seem counterintuitive, but North Carolina law allowed it for 20 years. N.C. Gen. Stat. § 135-106(b) changed 10 years ago, but Trejo’s benefit claim is still governed by the expi...