Pension system reported to still be paying the deceased

The national pension system has a number of weaknesses that is causing it to distribute money that it does not owe, said the Contraloría General de la República. The report was one of the series of financial studies done by the watchdog agency.

The report said that the Dirección Nacional de Pensiones was continuing to pay pensions to the dead and also had errors in calculations that gave recipients more than they deserved.

The report said that efforts to recover money sent by mistake  was ineffective and had only got back 1.26 percent or 13.6 million during the time period under study, last March. The amount is about $26,000.

The report said it was the job of the Ministerio de Hacienda to seek judicial and extra-judicial ways to recover the money.

In all, the Contraloría said that about 1.4 billion colons had been distributed incorrectly. It said that this amount was estimated to rise to about 2.9 billion by March 2016 unless steps were taken to correct the practices.

The report noted that there was a lag between the death of a recipient and the filing of that death with the Registro Civil where the pension system gets its information.

The amount sent in correctly to the dead as of March was 989 million or about $2 million, said the report.

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