SGK detects 100 thousand fake insurance cases! Paid pensions will be clawed back with interest
The Social Security Institution (SGK) has identified nearly 100 thousand fake insurance transactions in 2023 and 2024. While retirement processes based on fake insurance are being cancelled, the pensions paid will be recovered with interest. Furthermore, criminal complaints will be filed against business owners and insured individuals involved in the irregularities.
Pursuing fake, fraudulent retirement and premium irregularities, the SSI has identified nearly 100,000 irregularities in 2024 as a result of retrospective audits. Carrying out penal proceedings regarding the irregularities, the SSI is also sending notifications to retirees regarding suspicious transactions, calling them in to provide statements. Citizens subject to suspicious transactions are required to go to the SSI and provide a statement within three business days. If the irregularity is due to an error by the SSI, payments made within the last 5 years are collected without interest; if it is due to the citizen, payments made within the last 10 years are collected with interest. The SSI is also filing criminal complaints with public prosecutors for penal proceedings.
WHAT IS FAKE INSURANCE?
Fake insurance is considered to be the reporting of an individual as insured by a workplace where they do not actually work, even if they are busy with another job or are working at another workplace or in another position.
WHO MOST FREQUENTLY USES FAKE INSURANCE?
This situation is explained solely as the act of being shown as insured on records and documents. In fake insurance, which is commonly carried out among spouses, friends, and relatives, an increase has recently been observed in the reporting of pregnant women as insured who wish to gain retirement rights and receive temporary incapacity benefits.
IS RETIREMENT BEING CANCELLED?
According to the report by Sabah, pension and retirement cancellations generally occur when individuals are reported as insured in their name despite not actually working at the workplace, and they retire due to this fake insurance. In its audits, the SSI focuses particularly on premium payments made through "shell companies." In this method, without any actual work, a fake insurance report is made solely so that the person can gain the right to retirement.
WILL THE RECEIVED SALARIES BE REPAID?
In the event that an undue payment is identified as a result of the examinations, specific rules are applied regarding the collection of these payments. If the reason for the undue payment is an erroneous transaction by the SSI (for example, an incorrect determination of the conditions for entitlement to a pension), payments made within the 5 years preceding the date of detection are collected.
WILL INTEREST BE APPLIED TO REPAYMENTS?
Furthermore, no interest is applied to payments made within the 24 months preceding the date of detection. On the other hand, in cases where the undue payment stems from the fault of the insured (for example, fake service or the use of misleading/fake documents), payments made within the 10 years preceding the date of detection are collected, and interest is applied to these payments.
In the event of detected irregularities, retirement is cancelled, individuals are asked to repay the salaries paid to them to the SSI with legal interest, and criminal complaints are filed with public prosecutor's offices against the business owners who reported the insurance and the individuals reported as insured, within the framework of crimes of forgery of official documents and causing loss to the SSI.