The Court of Auditors raises the alarm: millions of euros in French pensions are allegedly being paid incorrectly abroad. In particular, Algeria is under scrutiny, with potential fraud reaching up to 80 million euros annually. This troubling phenomenon is prompting the state to significantly tighten its controls starting in 2025.
The Court of Auditors recently released its 2025 report on the application of the social security budget, highlighting concerning irregularities in the payment of French pensions abroad. Notably, Algeria is highlighted with fraud estimated between 40 and 80 million euros per year, of a total of 1.1 billion euros in pensions disbursed annually in that country.
This fraud is mainly attributed to unreported deaths, allowing relatives to continue receiving pensions unlawfully. Enhanced controls have identified between 2 and 5% of unreported deaths in analyzed samples.
Enhanced Control Measures
In light of this situation, the Court of Auditors recommends increasing inspections, notably by delegating certain verifications to local partners. The goal is to ensure the validity of life certificates and the authenticity of civil status documents.
Since 2017, progress has been made in European countries through the widespread exchange of computerized data with local pension schemes. However, outside of Europe, these systems remain absent or limited, leaving the system vulnerable to fraud.
A Significant Budget Impact
While instances of fraud are relatively low in percentage terms, their absolute amount necessitates a heightened vigilance. Amid pressure on public finances and pension reforms, the estimated 40 to 80 million euros potentially lost each year in Algeria represents a significant shortfall.
Pension fraud involving payments made abroad, particularly in Algeria, poses a major challenge for French authorities. Therefore, enhanced control measures are essential to ensure the integrity of the pension system and to manage public funds effectively.
