Governor Paterson has requested Attorney General Andrew Cuomo to investigate The New York Times’ allegation that excessive amounts of LIRR retirees, who had not been recorded as disabled prior to retirement, qualify for disability benefits post-retirement.
The New York Times reported that an astonishing 93 to 97 percent of retirees since 2000 retired prematurely while collecting amounts much more than their annual base salary. Work rules and union agreements help further their retirement age at a cost to the taxpayers and LIRR customers.
Anywhere between 93 and 97 percent of retirees every year since 2000 have retired early and soon after begin getting disability payments from the federal agency. The retirement board almost never turns down a claim and since 2000 has paid more than a $2.5 million in disability checks to former Long Island Rail Road workers.
According to the LIRR’s 2009-2012 financial plan, in 2007, LIRR labor expenses on payroll cost more than $3.861 million. The federal government has spent anywhere from $3.59 million to more than $3.74 million on disability benefits for LIRR workers alone.
On Tuesday, September 23, the governor moved the investigation up to a federal level. The attorney general now joins the efforts of Congress to closely examine the federal Railroad Retirement Board to determine the cause of the query. Cuomo questions whether the LIRR can regulate costs and the high annual payments made to certain employees within existing work rules and union agreements.
Following Governor Paterson’s decision to involve Congress on September 23, federal agents raided the federal Railroad Retirement Board in Westbury in collaboration with the MTA inspector general. Agents walked out with nine file boxes and five personal computers.
“At a time when our state and national economies are facing unprecedented strain and families are worried about meeting the cost of basic necessities,” said Paterson, “we must ensure the most appropriate, efficient use of taxpayer dollars.” While payments were authorized by the federal government, LIRR workers, customers and New York taxpayers are greatly affected.
Governor Paterson has also reached out to MTA Inspector General Barry Kluger, House Transportation & Infrastructure Committee Chairperson Hon. James Oberstar and Ranking Member Hon. John Mica and Chairperson Senator Edward Kennedy and Ranking Member Michael Enzi of the Senate Committee on Health, Education, Labor & Pensions to look into the practices of the Railroad Retirement Board’s operating practices.
The investigation aims to confirm why such a high percentage of retired employees collect disability after the termination of their employment and the process involved. Governor Paterson has granted Attorney General Cuomo the power to summon all those responsible for a crime to appear before a grand jury.
