The investigation was prompted by a New York Times report that almost $250 million of federal Railroad Retirement Board's occupational disability fund was paid to former LIRR workers, including white collar managers, since 2002.
Included in the list of those receiving disability benefits are the 12-highest paid LIRR engineers and 90 percent of LIRR retirees, which experts said was an unusually high number.
In justifying the grant of broad powers to Cuomo, Paterson explained, "At a time when our state and national economies are facing unprecedented strain and families are worried about meeting the cost of basic necessities, we must ensure the most appropriate, efficient use of taxpayer dollars."
Congress, at about the same time that Cuomo will conduct the investigation, called members of the Railroad Retirement Board for a hearing.
Aside from the payment of disability benefits to majority of the retired LIRR staff, a New York inspector general's report discovered in 2004 that LIRR staff got three days' salary for one day's work 662 times.
Incensed Paterson told the New York Times, "To say that this is outrageous is probably an understatement... It's one of the most surprising developments in my tenure as governor and even in my long service in government."
The LIRR, in a statement, said the agency was not involved in the grant of disability pay to former workers. Granting disability pay to a huge number of its employees was not in line with LIRR's workplace safety record, the LIRR added.
