Payment services specialist Western Union has launched a product aimed at reducing false overseas pension claims.
Western Union Business Solutions is trialling the new ‘Existence’ service in the UK, with the aim of expanding to other global markets in 2014.
The service is designed to help pension funds maintain up-to-date records by requiring overseas members to pick up a payment in person once a year from their local Western Union retail location.
Western Union says around £33m could be saved by eliminating false pension claims abroad.
A WUBS spokeswoman says the firm will work with individual pension administrators to determine how to proceed if an overseas member does not identify themselves within a 12 month period.
WUBS president Raj Agrawal says: “Pensions administrators can use Western Union’s new existence service to help ensure that all overseas payments are going to the correct recipients.
“It has been specifically designed to make the payments process as smooth as possible for both the overseas pensioner and the administrator.
“Savings of even one per cent could be significant.”