In Los Angeles, there is something known as the Deferred Retirement Option Plan (DROP), a program that allows retirement-age police officers and firefighters to collect their pensions while continuing to work and receive paychecks, essentially getting twice the pay for the last few years of service.
In theory, it makes sense. It allows for precincts and firehouses to retain some of their most experienced employees, while the individuals get to extend their employment for a few more years and maximize their earning capability.
In practice, though, the DROP program has been easily abused, with the Los Angeles Times exposing that half of those who joined the program went on disability leaves while receiving their double-pay.
That investigation revealed that the average absence was 10 months, but many of them remained on leave for more than a year. Commonly, the claims are for bad backs and knees from cumulative trauma, carpal tunnel syndrome, and high blood pressure (cancer is also a common claim).
But dishearteningly, there are several cases of those with workers’ compensation that were caught doing strenuous physical activities, like the Long Beach firefighter who finished a half-marathon about two months after a knee injury or the LAPD officer who taught diving lessons from his scuba shop.
Instead of working the way it was originally envisioned, the program has instead been used by people who want to take advantage of the system, collecting a twice the amount of money while taking significant time off nearing their retirement.
While the program in itself isn’t bad, it could be an avenue for workers’ compensation fraud. It just needs some levels of protection to make sure abuses don’t go unchecked.
Consult with TukkoMed to find out how early detection reports and other services related to battling medical claims fraud can help your company.
SOURCES:
“Workers claim injuries all over their bodies for big payouts – but continue their active lives.” Los Angeles Times, 15 July 2018, Web.
http://www.latimes.com/local/lanow/la-me-adv-skin-and-contents-20180715-story.html
“Battling treacherous office chairs and aching backs, aging cops and firefighters miss years of work and collect twice the pay.” Los Angeles Times, 3 February 2018, Web.
http://www.latimes.com/local/california/la-me-drop-20180203-htmlstory.html