NORTH CAROLINA GENERAL ASSEMBLY
1971 SESSION

CHAPTER 1009
SENATE BILL 465

AN ACT TO PROVIDE FOR HOSPITAL, MEDICAL AND DISABILITY BENEFITS FOR TEACHERS AND STATE EMPLOYEES.

The General Assembly of North Carolina enacts:

Section 1.  Chapter 135 of the General Statutes is hereby amended by inserting a new Article at the end thereof, to be designated as Article 3, and to read as follows:
"Article 3.
"Other Teacher, Employee Benefits.
"§ 135-32.  Health benefits division. — The board of trustees of the Teachers' and State Employees' Retirement System is hereby directed to establish a division of health benefits for providing the services authorized by this Article.
"§ 135-33.  Hospital and medical insurance. — The board of trustees of the Retirement System shall formulate, establish and administer for teachers and State employees a program of hospital and medical care benefits to the extent that funds for such benefits are specifically appropriated by the General Assembly to the board. Such a program may be provided by the board either directly or through the purchase of contracts therefor, or any combination thereof, as in its discretion it may deem wise and expedient. In awarding any contracts pursuant to this section, the board shall give consideration to the total or overall cost of complete family coverage by teachers and State employees.
"§ 135-34.  Disability salary continuation. — The board of trustees of the Retirement System shall formulate, establish and administer for teachers and State employees with one or more years of service a program of disability salary continuation benefits to the extent that funds for such benefits are specifically appropriated by the General Assembly to the board. Such a program may be provided by the board either directly or through the purchase of contracts therefor, or any combination thereof, as in its discretion it may deem wise and expedient.
"§ 135-35.  Advisory committee. — The board of trustees is authorized to appoint such advisory committees as it may deem advisable to assist the board and the health benefits division in formulating and administering the programs authorized by this Article. Members of such committees shall be paid the same per diem and travel allowance as is authorized generally for State boards and commissions.
"§ 135-36.  Membership in Retirement System not necessary. — The fact that a teacher or State employee' is not a member of the Teachers' and State Employees' Retirement System does not affect his right to benefits provided under this Article, with the exception of School Bus Drivers in the Public School System and temporary and part-time employees, who are specifically excluded.
Sec. 2.  Appropriations to the Teachers' and State Employees' Retirement System in connection with this act are intended to provide the hospital and medical care benefits authorized under G.S. 135-33 for the fiscal year July 1, 1972 - June 30, 1973, provided, for the fiscal year July 1, 1972 - June 30, 1973, not more than ten dollars($10.00) per month shall be expended for each teacher and State employee to provide hospitalization and medical insurance and not more than three dollars ($3.00) per month for the fiscal year July 1, 1972 - June 30, 1973, shall be expended for each teacher and State employee to provide disability salary continuation benefits.
Sec. 3.  There is hereby appropriated to the Teachers' and State Employees' Retirement System out of the General Fund of the State, to administer the benefit programs provided by this act, the sum of $100,000 for the fiscal year July 1, 1971 - June 30, 1972. Cost of administration of the provisions of this act thereafter shall be borne from the appropriations heretofore made to provide the hospital and medical care benefits authorized under G.S. 135‑33.
Sec. 4.  There is hereby appropriated out of funds available in the various Special Funds sufficient amounts to meet the requirements of this act for each Fund.
Sec. 5.  This act shall become effective July 1, 1971.
In the General Assembly read three times and ratified, this the 20th day of July, 1971.