Palmer Sends Oversight Letter Concerning Abuses in the Railroad Occupational Disability Program

For Immediate Release

Congressman Gary Palmer, a member of the House Oversight and Government Reform Committee, released a letter today sent to the U.S. Railroad Retirement Board (RRB) regarding serious ongoing concerns with the railroad occupational disability program.

Palmer, in his first oversight letter, cites a Seven-Day Letter to Congress from the RRB Inspector General (IG). Seven-Day Letters are required by law for "particularly serious or flagrant problems, abuses, or deficiencies." The IG's letter notes a 98% national occupational disability approval rate. In one case cited in the letter, the RRB re-adjudicated a number of claims put forth by the Long Island Rail Road employees under "increased scrutiny," all of the claims were reapproved, despite the fact that those employees eventually entered guilty pleas to committing fraud against the RRB.

"It is necessary that disability programs of the federal government serve those with true needs. However, it is my understanding that a person does not have to be ‘disabled,' as the term is generally understood, in order to qualify for an occupational disability.

"The RRB's occupational disability program might be in the category of programs that have served a purpose and now need serious examination of their utility and effectiveness in the modern workforce."

Background Information:

The Railroad Retirement Act provides two types of disability annuities: total and occupational. The Railroad Retirement Board is in charge of investigating and determining whether an individual is disabled. Under the current structure, the Board approves more than 90% of those applying for occupational disability. Both the U.S. Government and Accountability Office and RRB Inspector General have raised concerns about fraud within the system, but the Board has done little to address the problems.

There does not appear to be any other industry where employees can apply for occupational disability. Unlike total disability, where a person can no longer work, under occupational disability the individual can receive a check from the government and find another job making more than he made in the railroad industry. He is considered to be occupationally disabled, simply because he can no longer do the railroad job he was doing, even if he could perform a separate railroad job. There are questions as to whether this category should have ever existed, but circumstances have definitely changed since it was created in 1945. The 1990 Commission on Railroad Retirement Reform recommended limiting recovery under occupational disability to 24 months.

"The country is $18 trillion in debt. RRB might seem like a small program in Washington terms, but Congress has an obligation to make sure every dime we spend breeds public confidence. This program does not appear to meet that standard."

A copy of the letter from Congressman Palmer to the RRB is attached.

For any additional questions, contact:

Cliff Smith, (202) 225-4921, clifford.smith@mail.house.gov

U.S. Representative Gary Palmer (R-AL) serves on three Congressional committees: Oversight and Government Reform, Budget, and Space, Science and Technology. Visit Palmer online at his website or via Facebook,Twitter, or Instagram.