The Swedish Pensions Agency has called for several reforms to help combat benefit fraud and incorrect payments, for which it is responsible.

It estimated that for pensions, incorrect payments and benefit offences amount to around SEK 1.3bn. Therefore, the agency has implemented several initiatives that have helped to reduce errors.

In 2024, the SPA paid out around SEK 455bn in pensions and benefits to 2.3 million pensioners. The agency has recovered SEK 227m and stopped future incorrect payments of SEK 612m, totalling SEK 840m in 2024.

This is an increase for the fourth consecutive year and by 28 per cent since 2023.

“We have implemented several measures that reduce the number of incorrect payments, above all more efficient processing. Every krona invested in control activities returns just over SEK 8 in detected incorrect payments. On average, an administrator's labour leads to SEK 4.5m in recoveries and SEK 16.5m in ceased payments, a total of SEK 21m,” SPA director general, Anna Pettersson Westerberg, said.

During the year, several measures have been implemented to make it easier for pensioners to do the right thing in order to reduce incorrect payments. This has been done through several initiatives in processing, IT development, information provision, development of web services, collaboration with other actors and analyses.

However, the SPA has now identified a number of measures that are needed for even more effective work against incorrect payments from the pension system.

“Our efforts are producing results and we are continuing to develop our work at the authority to further counteract incorrect payments. But more measures are needed to enable us to take the responsibility we want to take. We need more pre-filled information that reduces the risk of incorrect payments in the same way as in the declaration form. This would limit the scope that exists today to make errors or commit offences. It would also make it easier for pensioners to apply for housing allowance, for example, which requires some 30 pieces of information about income, housing and wealth,” Pettersson Westerberg said.

It has also called for the automated exchange of information between countries as it said inadequate information about pensions from other countries creates a high risk of incorrect payments.

The possibilities for more automated exchange of data within the EU, the EEA and Switzerland should, therefore, be promoted, it said. A feasibility study for digital exchange in the Nordic countries shows how cooperation on national information services between countries can further counteract benefit fraud.

---