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NYC Counsel Warns Of OTB Retirees Losing Benefits

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(Photo by Mario Tama/Getty Images)

(Photo by Mario Tama/Getty Images)

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ALBANY, N.Y. (AP) – New York City’s attorney warned that with New York City Off-Track Betting Corp. trying to close permanently, its retirees face losing medical benefits that were reimbursed by OTB unless the state steps in.

Corporation Counsel Michael Cardozo said the City cannot be called on to bail out the state’s public benefit corporations. The OTB filed a motion to withdraw its bankruptcy reorganization petition Wednesday, saying it plans to close.

Officials said about 900 retirees would be affected. Their insurance costs about $6 million a year.

Under a 2008 law, the state took over the financially troubled city OTB. The state Senate last week failed to pass a reorganization plan.

Cardozo said retiree benefits could end Jan. 1. About 1,000 employees are losing jobs.

(Copyright 2010 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

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