A Big Disability Scam and the Revolving Door

Long Island (NY) Railroad (LIRR) retirees are many times more likely to be on disability than other rail workers, and the New York Times has been focusing on this story (click here for a page of articles and information). Needless to say, according to an article in today's paper, behind it all are conflicts of interest, especially a revolving door whereby retirement officials and union leaders become consultants who help new retirees into the wonderful world of disability payments. One of the union leaders was the union representative on the Metropolitan Transit Authority, the parent agency of the Long Island Railroad.

Add in a small circle of doctors who see these retirees, and you have a perfect scheme that puts private interests ahead of the public interest, and remains hidden for years, despite the outrageousness of the numbers (e.g., from 2001-2007, 753 cases of disabling arthritis or rheumatism among LIRR workers, and only 32 among the workers of Metro-North Railroad, its sister railroad to the north of New York City; disability rates reached 97% in 2004, three times the average railroad's rate). Since 2000, LIRR retirees have recieved $250 million in tax dollars.

And all anyone involved can say is that they were doing a service and doing it well. Yes, they certainly were.

Would this sort of revolving door abuse be in violation of government ethics codes (forget the criminal aspects)? Probably not unless they were written with this sort of activity in mind. And even then, after a year it would all be okay. Which leads to the question: does a former government official have any obligation to the public interest, or does that obligation magically (in addition to legally) end one year after he or she leaves?

Robert Wechsler
Director of Research-Retired, City Ethics

---