NY AG Obtains Agreement With Railroad To End Disability Benefits Abuses

This agreement comes as part of Attorney General Cuomo's investigation into the findings that a disproportionately high number of LIRR employees applied for and received occupational disability benefits from the United States Railroad Retirement Board (“RRB”), a federal agency. The LIRR has agreed to retain an independent examiner to design a compliance program and recommend controls at the LIRR. The moves are to help address the problems with the occupational disability benefits that were uncovered by the Attorney General's investigation and highlighted in a public hearing in Long Island conducted by the Attorney General and attended by five members of Congress.

More than 90% of LIRR retirees applied for disability benefits from the RRB to supplement their pension -- a disproportionately high percentage in relation to other railroads -- and the RRB approved almost every application for the benefit. The investigation also exposed a cottage industry that has developed among certain doctors and consultants to assist LIRR employees in exploiting the system.

“Taxpayers, and my office, will not put up with a culture of entitlement and unchecked systemic abuses of disability benefits,” said Attorney General Andrew Cuomo. “The appointment of an independent examiner is an important step to ending waste and abuse, and I am pleased to have the cooperation of the LIRR in this regard.”

Although the awarding of occupational disability benefits is controlled by the RRB, a federal agency, the LIRR has agreed to take steps to ensure that it is doing its part in curbing any abuse.

Long Island Rail Road President Helena Williams said, “The LIRR has been doing everything in its power to ensure that federal occupational disability pensions awarded by the U.S. Railroad Retirement Board in Chicago are reserved for those who truly deserve them. We have been cooperating closely with the New York State Attorney General's Office to achieve this goal and we are pleased to announce this agreement with the AG's Office where we will review and look to improve our compliance program.”

In addition to designing a compliance program and recommending controls, the independent examiner will also, at a minimum:

The agreement announced today was handled by Special Deputy Attorney General for Public Integrity Ellen Nachtigall Biben and Deputy Bureau Chief Monica Stamm, with assistance from Assistant Attorneys General Renée L. Jarusinsky and Jessica E. Silver of the Public Integrity Bureau.

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