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China Pension Audits Uncover Widespread Payments to Dead People

Published: Aug. 27, 2025  1:14 p.m.  GMT+8
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Government audits released in August across multiple Chinese provinces have uncovered millions of yuan in improper pension payments, including funds disbursed to deceased individuals, highlighting significant vulnerabilities in the country’s vast social security system.

In Shandong province, an audit report disclosed that between 2022 and 2024, social security offices in two cities and 48 counties improperly paid 2.41 million yuan ($335,389) to 505 deceased individuals. The report also found that 13 cities failed to clear personal pension and annuity accounts for 1,987 people who had been dead for more than a year, leaving 19.77 million yuan ($2.75 million) in limbo.

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  • Audits in multiple Chinese provinces uncovered millions of yuan in improper pension payments, often to deceased or ineligible individuals, exposing systemic flaws.
  • Key issues include lack of data sharing, weak verification, underfunding, and failures in pension contributions and benefit disbursement.
  • The State Council urged improved risk controls, national fund management, and fraud crackdowns to address these vulnerabilities.
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What Happened When
Between 2022 and 2024:
Social security offices in two cities and 48 counties in Shandong province improperly paid 2.41 million yuan to 505 deceased individuals.
By 2025:
A high court in Guangxi disclosed a case where a woman used facial recognition to impersonate her deceased sister, illegally collecting 138,000 yuan in pension benefits over nearly six years; she was convicted of fraud and sentenced to one year and ten months in prison.
June 2025:
A State Council audit report called for strengthening unified management of the national pension fund and urged local authorities to address funding gaps and crack down on fraud.
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