Controversy Erupts Over Terms of WTC Victims’ Compensation Fund

January 7, 2002

No sooner had Special Master Kenneth Feinberg announced the rules governing payments by the Victims’ Compensation Fund, established by the federal government to compensate the survivors and the families of victims of the Sept. 11 attacks, than controversy erupted over the limits placed on recoveries.


egislators and family members have complained that the rules governing recoveries by the size of the family and the age and earnings history of the victim are too restrictive. They’ve also complained that limiting recoveries for pain and suffering to $250,000 and subtracting any amounts paid from life insurance or pension funds from the recovery amount is unfair, especially given the fact that by seeking a recovery from the fund, families are required to forego the option of filing individual lawsuits for their losses.

Feinberg indicated that he would address their concerns, and said that the rules he’s put forth are preliminary, and won’t be finalized until January 21.

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