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Victims of Osama Bin Laden's Terror Today Can Begin Applying to Get Aid from Government's 9/11 Victim's Fund

Aired December 21, 2001 - 08:08   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
PAULA ZAHN, CNN ANCHOR: The victims of Osama bin Laden's terror today can begin applying to get aid from the government's 9/11 Victim's Fund. Special Master Kenneth Feinberg, yesterday, announced the guidelines for compensation. The awards will range from about $300,000 for families of low-income single people to some $3.8 million for top earners with large families. On average, victims' families will receive $1.65 million. But how do you put a price tag on a lost life?

Special Master Kenneth Feinberg joins us now from the White House lawn. Thank you for joining us again, now that you've started this job.

All right, what I'd like to ask you about this morning, Mr. Feinberg, is the discussion of collateral offsets -- things like life insurance and pension payments. Why is it fair that some people who had planned for the possibility of death are penalized in this system?

KENNETH FEINBERG, 9/11 VICTIMS' COMPENSATION FUND: Well, first the law requires it that created the fund. The law expressly states that certain collateral offsets, like life insurance and pension, should be reduced -- should reduce the award that will be paid by the United States.

The theory is, of course, that the goal of the program is to make sure that individual families of victims, et cetera, have a - have some -- some financial security. If that security already is achieved through life insurance or an existing pension, the United States will pick up the shortfall of that offset, but won't provide additional income on top of it.

ZAHN: No doubt you've heard from some families who say, wait a minute, this isn't quite fair. You're allowing the charitable donations not to be taken as an offset, but you are -- you know, I know you said the law states that you have to count the life insurance as an offset. These people say, look, you know, my spouse has been paying into a fund thousands and thousands of dollars a year for many years. Do they have a point here?

FEINBERG: They have a very good point. First of all, if the spouse has been paying in premiums, that money won't be offset. We'll credit those -- those amounts. We're talking about the non-premium pay -- the indemnity pay from the insurance company. That's what would be offset. But they have a -- I mean, I understand. Implementing this program really requires you to be like Solomon. We have to decide what value to put on life, how much to be paid, how much should be offset. It is a very, very thorny problem, and we have spent a great deal of time talking to the families of victims trying to understand exactly what is on their mind.

ZAHN: Let's talk...

FEINGERG: It's a tough problem.

ZAHN: Yes. I can't imagine the challenge you're trying to figure out too -- awards based on economic losses and non-economic losses.

Let me quickly play a small part of an interview that a man did yesterday, Stephen Push, whose wife Lisa Raines was lost in the plane that slammed into the Pentagon. Here is what he had to say about the equation.

(BEGIN VIDEO CLIP)

STEPHEN PUSH, WIDOWER OF PENTAGON VICTIM: We're not talking about the economic damages now -- the lost income. We're talking just about the non- economic damages, which are pain and suffering, and other nonpecuniaries -- what the law calls it -- damages. For those, he is only offering to pay $250,000, compared to anywhere from 2 to 20 million paid to people who have done successful lawsuits against airlines and terrorists.

(END VIDEO CLIP)

ZAHN: So, Mr. Feinberg, what do you say to people like Mr. Push who feel that the value for a non-economic loss was set way too low?

FEINBERG: I say two things. First, we do not distinguish between victims in terms of non-economic loss. Everybody is treated the same.

Now, you make a very good point -- he does -- about the low amount. I would say two things to that. First, the overall awards are quite reasonable, we believe.

And secondly, he talks about a successful lawsuit. Well, this program is an alternative to the legal lottery. We are paying claims out within 120 days of submission. If you want to try and receive substantial pain and suffering -- 2 million, 20 million, 10 million -- you have to litigate. You have to be successful. You have to litigate for years -- 5, 6, 8 years; 40, 30 percent of that award goes to your lawyer. You have to survive appeals. And most importantly, I think, for the victims -- their families, when you litigate, you constantly, for a number of years, are reliving and reliving the horror of September 11.

This program is entirely different. Put in your claim. You don't have to prove liability on the part of anybody. Submit your documentation. We will cut you a tax-free check within 120 days. ZAHN: Well, Kenneth Feinberg, we appreciate your coming along this morning to help us better understand this program. You obviously announced the guidelines yesterday, and we very much appreciate the update. I can't think of a tougher job to do in Washington.

FEINBERG: Well, thank you very, very much.

ZAHN: Hope you have a good holiday.

FEINBERG: Thank you.

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