AHV Overpaid 40 Million Francs Abroad

Here's what it's all about

• The AHV and IV have overpaid nearly 40 million francs in pensions to recipients abroad.
• Due to complicated procedures or cases of fraud, it is difficult to recover some of the money.
• Although controls have been improved, the Swiss Federal Audit Office continues to identify weaknesses.

Summary created with

In recent years, the AHV and IV have wrongfully transferred millions in benefits abroad. As reported by the "SonntagsZeitung" reports, the total amount of overpayments, according to the Central Clearing Office (ZAS), stood at just under 40 million Swiss francs as of the end of March.

Of this amount, approximately 17 million francs remain outstanding and will be reclaimed from the insured. About 300,000 francs are now considered uncollectible.

Recovering Funds Abroad Is Often Difficult

According to the Central Clearing Office, recovering funds from abroad is significantly more complicated than doing so within Switzerland. While enforcement proceedings can be initiated relatively quickly here in Switzerland, recovering funds from abroad depends on the respective national laws.

Within the EU in particular, so-called liaison offices do provide support to Switzerland. Nevertheless, many cases must be resolved in court. Such proceedings are considered lengthy and expensive, and do not always result in the actual return of the funds.

Improved Controls Reduce Damage

Each year, Switzerland transfers approximately one million AHV and IV pensions abroad, totaling about eight billion francs. Given this amount, errors cannot be completely avoided, the authorities write, according to the newspaper.

At least the situation has improved. According to the Swiss Federal Audit Office, the total amount of overpayments in 2020 was still nearly 82 million francs, but has since been reduced to around 40 million.

Financial Oversight Continues to Identify Weaknesses

Despite the progress made, the Swiss Federal Audit Office still sees a need for action. In particular, there is room for improvement in the analysis of data. The audits remain too sporadic.

Furthermore, the Central Clearing Office does not have full access to all AHV and IV data. As a result, it lacks the ability to detect errors or cases of fraud at an early stage. According to the Financial Control Office, it remains to be seen whether the reforms that have been initiated will achieve the desired results.