RALEIGH, N.C. — A three-judge panel of the North Carolina Court of Appeals says a division of the State Treasurer’s office acted properly to reduce disability benefits to a former state employee.

A news release from the Department of the State Treasurer said Wednesday that the panel ruled unanimously that the retirement systems division of the Department of State Treasurer acted properly in reducing the benefits to Stephanie Trejo, who had challenged the initial decision.

The state approved Trejo’s application in 2009 and awarded her disability benefits, including retroactive payments for benefits that accrued since 2004. In 2013, the state told her that it had mistakenly failed to apply a mandatory offset based on the Social Security benefits to which she might be entitled, leading to a reduction of her long-term disability payments.