New York City faces federal investigation involving veterans' pensions

10/23/2012 | Reuters

A lawsuit filed by federal prosecutors accuses New York City of illegally decreasing retirement benefits for public employees who served in the military after Sept. 11, 2001. When calculating pension benefits, the city allegedly failed to take into account the money veterans would have earned had they not performed military service. Prosecutors said Monday that they had widened their investigation to include all retired city workers who receive a pension.

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