Payments to Deceased Pensioners - March 2004
Payments to Deceased Pensioners
Released: March 2004
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We performed this Audit in response to concerns from the Departments of Finance and Law regarding pension payments to two deceased pensioners' accounts. The concerns followed the discovery of $75,690 diverted by a former Pension Division employee in the names of deceased and fictitious pensioners.
The Pension Division made payments totaling $2.1 million from March 2000 through June 2003 to 454 pensioners identified by our data sources as deceased. The pension overpayments and fraud occurred as a result of inadequate policies and procedures for monitoring pension payments.
We recommended that the Pension Division:
- Establish policies and procedures to collect pension overpayments made to deceased pensioners.
- Develop a more proactive process for identifying deceased pensioners.
- Segregate duties so employees generally have access to only one major job junction within the software used to track pensioners.
- Improve supervision and review of the work of subordinates.