Greece saves millions by axing pensions for the dead

Greece has stopped various benefits, including pensions, to 200,000 people who lied to get their monthly cheques or were dead, the labour ministry has said. It involves about 2 per cent of the population.

Debt-laden Athens discovered the fraud after beginning basic data cross-checks and means-testing, under pressure from its international lenders to cut its deficits.

The government terminated payments to families that continued to receive the pensions of their dead relatives. It also stopped benefits to wealthy recipients who had posed as poor to become eligible.

“They were caught during the inquiry and the state is reclaiming the money they have illegally taken,” a ministry spokesman said.

The cuts will generate savings of up to €800 million (£655m) a year, the official said.

Greece has already slashed pensions by an average 25 per cent to balance the books of its social security system, outraging pensioners and fuelling deep discontent with the EU/IMF bailout’s austerity policies. Almost a quarter of the 11 million population are retired.