Oct 3, 2008 8:45 am US/Eastern
LIRR Boss: Change Disability System
NEW YORK (AP) ―
The president of the Long Island Rail Road called for legislation Thursday to overhaul a federal board that granted lucrative disability benefits to virtually every retiring employee in recent years.
Thursday's announcement was prompted by a New York Times report last month that uncovered a startling trend among retirees at the railroad. More than 90 percent of them were granted disability payments by the federal board, allowing them to collect huge payments every year.
As state retirees, they are entitled to perks such as free golf at a Long Island course, and the Times found "disabled" former railroad workers who spent their summer days walking 18 holes on the course.
LIRR President Helena Williams also said she is requiring all 6,800 railroad employees to undergo additional ethics training while establishing a hot line for employees and the public to report suspected fraud, waste and abuse.
The revelations have sparked four investigations, including probes by the U.S. attorney in Brooklyn and state Attorney General Andrew Cuomo. The inspectors general of the Railroad Retirement Board and the Metropolitan Transportation Authority, the parent agency of the LIRR, also have begun reviews.
Federal agents last week raided the Westbury, N.Y., office of the Railroad Retirement Board, seizing records and computers. Gov. David Paterson has called for a congressional investigation of the federal board.
Board general counsel Steve Bartholow declined to respond to Williams' comments.
Williams, who noted the Railroad Retirement Board does not consult with the LIRR before approving disability claims, said she is establishing an internal compliance unit to monitor the federal agency. Local railroad authorities, Williams said, have "an insubstantial role in the approval process" for disability benefits.
She said she doesn't know how many recent LIRR retirees are awaiting approval of disability claims because her agency isn't informed until benefits are granted. She said the revelations are particularly puzzling because the LIRR has earned national awards for worker safety in recent years.
She also contended that the board approves 98 percent of railroad disability claims nationwide.
Williams said she wants a congressional review of the existing statutes governing the Retirement Board, suggesting more stringent standards are needed to weed out frivolous claims.
"Part of my job is to safeguard the taxpayer and our customers' funds," Williams said. "I want to assure the public that is exactly what I intend to do."
(© 2009 CBS Broadcasting Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)
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