Labor & Employment Law

Long Island Rail Road?s high percentage of retirees receiving disability retirement benefits to be investigated

Long Island Rail Road?s high percentage of retirees receiving disability retirement benefits to be investigated

Source: Office of the Governor

Governor David A. Paterson has called for an investigation into allegations of fraud in the disability payments made to retirees of the Long Island Rail Road (LIRR). The genesis of the Governor?s request for an investigation: the high percentage of LIRR workers provided disability retirement benefits post-retirement notwithstanding the fact that the employees had not been deemed disabled at the time of their retirement. The Governor has also referred the matter to the State Attorney General, empowering Attorney General Andrew Cuomo to conduct an investigation with subpoena power to call those who possibly committed a crime to appear before a grand jury.

?Given the layers of government involved in creating what appears to be an inexcusable and excessive payment of disability benefits, it is imperative that my colleagues in the federal government and within the MTA participate in this investigation,? said Governor Paterson.

The Governor has written to Hon. James Oberstar, Chairman; Hon. John Mica, Ranking Member House Transportation & Infrastructure Committee, Sen. Edward Kennedy, Chairman and Sen. Michael Enzi, Ranking Member Senate Committee on Health, Education, Labor & Pensions urging the federal government to investigate the LIRR situation. The Governor?s letters to these members of Congress states:

"As you know, a recent New York Times article reported an unusually high number of disability claims being made by recently retired Long Island Rail Road (L.I.R.R.) employees. I have requested the New York State Attorney General to undertake an investigation to determine the reasons for and the processes involved by which it appears that such a disproportionately high percentage of retired employees apply for and receive these disability payments and provided the AG powers pursuant to Executive Law § 63(3).

?I respectfully request that your committee look into the practices of the Railroad Retirement Board and investigate why such a high percentage of LIRR workers are provided disability retirement benefits post retirement, when they had not been deemed disabled at the time of their retirement.

?Very truly yours,

?David A. Paterson

?Governor?

Full post as published by New York Public Personnel Law on September 24, 2008 (boomark / email).