Public sector pension fraud up to £20m a year

The 2013 Annual Fraud Indicator report said the most common frauds were schemes not being informed of a pensioners' death or a change in circumstance which affects the value of the pension. The report quotes the Audit Commissions' National Fraud Initiative (NFI), which found 2,661 cases of public sector pension fraud in its latest count. These cases cost the government £20.8m a year, calculated by multiplying the average public sector pension pay out (£7,800) by the number of detected cases. This is split £13.7m for central government and £7.1m in local government. However, it a...