L.I. Railroad Retirees May Be Abusing Their Benefits

After a New York Times article revealed an 'epidemic' of disability claims for retired employees of the Long Island Rail Road (the nation's largest commuter railroad), NY Governor Paterson announced he would have AG Cuomo launch an investigation.

2 minute read

September 23, 2008, 6:00 AM PDT

By Irvin Dawid


N.Y. "Gov. David A. Paterson said on Sunday (9/21) that he would give Andrew M. Cuomo, the state's attorney general, broad powers... to investigate how disability and pension benefits were potentially manipulated by L.I.R.R. supervisors, workers and retirees.

The governor's action comes after The New York Times reported that virtually every career employee of the railroad applies for and gets disability payments soon after retirement at a cost of hundreds of millions of dollars in federal disability money. The disability claims are paid by an obscure federal agency called the Railroad Retirement Board.

A senior state official said that the governor would also ask Congress and the United States attorney general to review the role played by the Railroad Retirement Board, which almost never says no to disability claims."

The high rate of disability pensions awarded to former L.I.R.R. employees by this governmental body is alarming and out of sync with our workplace safety record, the (L.I.R.R.) said.

_________________________________________________________________________

From NYT: "A Disability Epidemic Among a Railroad's Retirees", 9/21:

"Virtually every career employee - as many as 97 percent in one recent year - applies for and gets disability payments soon after retirement, a computer analysis of federal records by The New York Times has found.

At an age when most people still work, they get a pension and tens of thousands of dollars in annual disability payments - a sum roughly equal to the base salary of their old jobs.

With incentives like these, occupational disabilities at the L.I.R.R. have become a full-blown epidemic."

Thanks to Mark Boshnack

Monday, September 22, 2008 in The New York Times

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Use Code 25for25 at checkout for 25% off an annual plan!

Redlining map of Oakland and Berkeley.

Rethinking Redlining

For decades we have blamed 100-year-old maps for the patterns of spatial racial inequity that persist in American cities today. An esteemed researcher says: we’ve got it all wrong.

May 15, 2025 - Alan Mallach

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

May 21, 2025 - Diana Ionescu

Rendering of California High-Speed Rail station with bullet train.

California High-Speed Rail's Plan to Right Itself

The railroad's new CEO thinks he can get the project back on track. The stars will need to align this summer.

May 19, 2025 - Benjamin Schneider

Red SF Muni ticketing machine.

San Francisco Muni Raises Fares a Second Time

A 10–cent fare hike for adults is part of the agency’s plan to chip away at a growing budget deficit.

May 21 - San Francisco Examiner

Electric car charging station with several Chevy Bolts charging in parking lot of store in Bellingham, Washington

Electric Grid Capacity Could Hamstring EV Growth

Industry leaders say the U.S. electric grid is unprepared for the increased demand for power created by electric cars, data centers, and electric homes.

May 21 - GovTech

Top view new development riverside residential and commercial neighborhood with vacant land in Texas, USA.

Texas Bill Supports Adaptive Reuse in Commercial Areas

Senate Bill 840, which was preliminarily approved by the state House, would allow residential construction in areas previously zoned for offices and commercial uses.

May 21 - The Texas Tribune