The Selfish Side of Altruism: LIRR Disability Payments

The New York Post reports that 11 people have been charged with defrauding the pension system of the Long Island Rail Road (LIRR). Apparently, several LIRR employees, a former union president, and two doctors got together and filed false disability claims. As a result, they received more generous payments from the LIRR pension plan upon retirement.

How much more generous? Well, disability status adds “an average of $36,000 to a retirees annual pension payout”.

Again, these are charges, not convictions. But, if true, they’re another illustration of the selfish side of altruism.

Like many pensions, the LIRR pension plan has a disability component which is based on an altruistic desire. It’s designed to help out LIRR employees who, through no fault of their own, got hurt on the job and are unable to work and provide for themselves and their families, or who — after retirement — continue to suffer from work-related injuries.

Rather than earning an extra $36,000 by getting a job that provides goods and services to customers, these folks apparently chose to get that amount by pretending to be hurt on the job.

And this may not be a handful of isolated cases:

“A staggering 79 percent of LIRR employees over age 50 received disability benefits from 2004 to 2008, according to MTA [Metropolitan Transit Authority] data.”

Further proof that altruistic programs — however noble their intentions — are liable to be abused by selfish people.


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