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Cuomo Reaches Deal with the LIRR in Disability Investigation

Posted on Mar 26, 2010

As a result of reported abuse of the LIRR's disability pension program, a state investigation was implemented to look into the high rate of claims by employees of the Long Island Rail Road. Despite subpoenas of doctors, insurance companies, railroad executives and every worker who retired in 2009, Mr. Cuomo’s office brought just one criminal case, and that was dropped last month.

Under the agreement reached with Mr. Cuomo’s office, the railroad will hire an independent examiner to review and monitor the railroads polices to ensure worker safety thus reducing accidents, worker injuries and medical problems. The new independent examiner will also study the Railroad Retirement Board’s procedures and make recommendations to cut down on bogus disability claims and awards.

In late 2008, prosecutors from Mr. Cuomo’s office brought felony charges of official misconduct against Frederick S. Kreuder, a former manager of the railroad’s pension office, saying he was charging workers to coach them in making disability claims. A judge's decision states these actions were unethical but not illegal and threw out the case in exchange for Kreuder’s resignation, payment of a $1,500 penalty and agreement not to work in the public sector.