About Fraud, Waste, and Abuse
Fraud, waste or abuse hurts PSERS, its members, retirees, beneficiaries, and ultimately the taxpayer.
When reporting Fraud, Waste, and Abuse, please include the following pieces of information, if available:
- Who was/is involved?
- What type of activity was/is taking place?
- When did the activity or incident take place? Is it still occurring?
- Where was/is the activity taking place?
- Why was/is the activity being done?
- How was/is the activity being carried out?
- Records, files or documentation supporting the allegation.
What is Fraud, Waste, and Abuse?
Fraud: The intentional, false representation, or concealment of a material fact for the purpose of inducing another to act upon it to PSERS’ detriment; or the intentional, false representation, or concealment of a material fact for the purpose of financial or personal gain.
Waste: The careless or needless expenditure of PSERS funds or the consumption of PSERS' property that results from deficient practices, systems, controls, or decisions.
Abuse: The intentional excessive or intentional improper use of PSERS' or, if applicable, state resources to the detriment or potential detriment of PSERS. This definition includes the intentional destruction, damage, sabotage, diversion, manipulation, misapplication, maltreatment, or misuse of said resources.
Examples of Fraud, Waste, and Abuse
Report any fraud, waste, and abuse committed by PSERS' employees, Board members and their designees, members, beneficiaries, survivor annuitants, alternate payees, employers, consultants, vendors, contractors, investment managers and/or any other parties with a business relationship with PSERS.
Examples:
- Falsely claiming a disability retirement.
- Intentional misreporting of salary and/or service information by employers for employees, retirees, consultants and/or independent contractors.
- Continuing to receive retirement benefits of a deceased member.
- Intentionally falsifying retirement information.
- Questionable accounting or operating practices.
This list is not comprehensive and is provided only as an example of the Fraud, Waste, and Abuse acts that should be reported.
Incidents such as identity theft and hacked bank accounts should not be reported to PSERS Fraud, Waste, and Abuse Unit. for aspect related to PSERS that are not considered Fraud, Waste or Abuse, please contact PSERS toll free at 1.888.773.7748.
Frequently Asked Questions
Yes. You may choose not to identify yourself when filing a complaint. If you submit an anonymous complaint, it may be more difficult to investigate and prove the allegations.
If you do choose to identify yourself, PSERS will make every attempt to maintain your confidentiality. In some cases, however, PSERS may be required to turn over information to the appropriate authorities, such as law enforcement.
Anyone with knowledge of any wrongdoing concerning PSERS may file a report.
The PSERS Retirement Code addresses fraud and the correction of errors:
§ 8534. Fraud and adjustment of errors.
(a) Penalty for fraud. --Any person who shall knowingly make any false statement or shall falsify or permit to be falsified any record or records of this system or plan in any attempt to defraud the system or plan as a result of such act shall be guilty of a misdemeanor of the second degree.
(b) Adjustment of errors. --Should any change or mistake in records result in any member, participant, beneficiary, survivor annuitant or successor payee receiving from the system or plan more or less than he would have been entitled to receive had the records been correct, then regardless of the intentional or unintentional nature of the error and upon the discovery of such error, the board shall correct the error and if the error affects contributions to or payments from the system, then so far as practicable shall adjust the payments which may be made for and to such person in such a manner that the actuarial equivalent of the benefit to which he was correctly entitled shall be paid. If the error affects contributions to or payments from the plan, the board shall take such action as shall be provided for in the plan document.