Thursday, October 27, 2011

Federal government and railroad pensions

Ten people, including a doctor and a former union president, were arrested early Thursday and charged in a major fraud scheme in which hundreds of Long Island Rail Road workers made false disability pension claims costing a federal agency an estimated $1 billion, according to people briefed on the matter. Another doctor charged in the case was being sought, the people said.
Most of the people — those charged in the case include seven former railroad workers accused of making false pension claims, the two doctors and a former federal railroad pension agency employee who helped the workers file the claims — were taken into custody in the early morning hours at their homes by F.B.I. agents and state investigators, the people said. NYT

You members of the economy may be confused, why is Congress managing the Railroad pension system? I would think an economists would ask, Why is the Congress involved n railroad pensions?

The mere fact that we do not know why, nor does this makes sense; those two facts argue for Congressional bankruptcy as the first step to reform.

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