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The Public-Union Albatross
- Philip Howard, Wall Street Journal
By PHILIP K. HOWARD
The indictment of seven Long Island Rail Road workers for disability fraud last week cast a spotlight on a troubled government agency. Until recently, over 90% of LIRR workers retired with a disability?even those who worked desk jobs?adding about $36,000 to their annual pensions. The cost to New York taxpayers over the past decade was $300 million.
As one investigator put it, fraud of this kind "became a culture of sorts among the LIRR workers, who took to gathering in doctor's waiting rooms bragging to each [other] about their disabilities while simultaneously talking about their golf game." How could almost every employee think fraud was the right thing to do?
The LIRR disability epidemic is hardly unique?82% of senior California state troopers are "disabled" in their last year before retirement.
Pension abuses are so common?for example, "spiking" pensions with excess overtime in the last year of employment?that they're taken for granted.
Governors in Wisconsin and Ohio this year have led well-publicized showdowns with public unions. Union leaders argue they are "decimat[ing] the collective bargaining rights of public employees." What are these so-called "rights"? The dispute has focused on rich benefit packages that are drowning public budgets. Far more important is the lack of productivity.
cont-----The Public-Union Albatross