By The Star Staff
An investigation by the Puerto Rico Office of the Inspector General (OIG) revealed the existence of over $5 million in improper payments by the Teachers Retirement System (SRM by its initials in Spanish) to deceased beneficiaries and errors in compensation to living beneficiaries.
The findings follow a preliminary assessment followed by an in-depth investigation covering the period from July 1, 2016 to May 31 of this year.
The investigation’s primary objectives included identifying improper payments to deceased pensioners, analyzing SRM’s efforts to recover those funds, and verifying compliance with applicable regulations. During the investigation, OIG investigators documented failures in SRM’s internal controls, including delays in deregistering deceased pensioners from the payroll system and a lack of adequate debt reconciliation and collection processes.
Among the most notable findings, it was noted that the SRM continued to make payments to deceased beneficiaries, accumulating a sum of $5,008,222 in questioned costs. Deficiencies were also detected that led to improper payments to living beneficiaries due to errors in pension adjustments, resulting in an improper payment of $423,538.53 to five individuals.
Although the SRM previously issued a memorandum with specific steps to improve the detection and discharge of deceased pensioners, as well as to strengthen debt management and funds recovery, the OIG concluded that the measures taken were insufficient. Problems with implementing established guidelines persisted, contributing to the continuation of inadequate practices in the system.
The report recommends that the SRM complete the steps to recover undue payments made to both deceased and living beneficiaries, effectively implement procedures for pension termination and verification, and establish mechanisms so that family members can report the death of a pensioner in a quick and effective manner.
In addition, the SRM must submit a corrective action plan pursuant to OIG Regulation No. 9229, ensuring that the necessary measures are taken to strengthen its internal controls and prevent the recurrence of such irregularities.
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