There are those who believe that, once awarded, the pension cannot be changed. In practice, this is not the case: there are situations that lead to the suspension of payment and the requirement to return amounts received unduly to Social Security and, in the most serious scenarios (due to fraud), administrative and even criminal consequences.
One of the most common cases is that of a pensioner who resumes professional activity without informing Social Security, or who carries out work that is incompatible with the type of pension he receives. In some installments, accumulation is prohibited; in others, it is possible, but it requires prior communication and respect for limits. If this does not happen, suspensions and replacement requests may arise.
In the general old-age pension, working after retiring is, as a rule, permitted without automatic cutting of the pension. Even so, there are exceptions provided for by law: the old-age pension resulting from the conversion of an absolute disability pension cannot be accumulated; and, in early retirement schemes through “flexibilization”, there are specific limitations, namely when the pensioner returns to paid work in an entity of the same group, for a specific period.
When the accumulation is undue, the refund usually appears
In special schemes, such as certain CGA pensions, there are restrictions on the exercise of paid public functions. When these rules are ignored, suspensions and requests for refunds of amounts paid may occur.
Another typical scenario is to receive, at the same time, a pension and another benefit that is incompatible. A recurring example is the overlap with unemployment benefits, which generates refunds and retroactive corrections.
Social Security considers unemployment benefit incompatible with the old-age pension. When it detects an overlap between installments, it orders the refund of what was paid in excess, with the amounts adjusted.
Incorrect data and fraud: here, the consequences get worse
Declaring incorrect information, indicating years of discounts that do not exist or presenting false income to meet eligibility criteria can constitute fraud. If this is proven, in addition to the return of what was unduly received, administrative and even criminal proceedings may arise.
In disability/disability pensions, the rules are stricter. Returning to carrying out an activity incompatible with the declared degree of disability, or omitting relevant income and work, allows the pension to be reviewed or terminated and demands refunds; and the concealment of relevant facts (such as years of non-existent discounts or false income) constitutes, in addition to replacement, a serious infraction.
There are also undue payments due to error, such as duplications or incorrect calculations. Even when the beneficiary is not responsible for the error, Social Security can request the “replacement of undue benefits”, allowing, as the case may be, payment plans and assessments in good faith; As a general rule, there is no late payment interest, unless the debt is subject to coercive collection.
Residence abroad and proof of life: a detail that can suspend everything
Changes of residence outside the country, especially outside the EU/EEA, involve administrative communications. If this information is not communicated, there may be suspension until regularization and, in some systems, there may be retroactive charges.
Anyone living abroad continues, as a rule, to receive the pension, but must comply with the annual life test, as notified. In 2025, the obligation immediately applied to residents of Switzerland and Luxembourg: for those who did not submit the proof by November 30, payment is suspended from January 2026.
Unfortunately, there are situations in which family members continue to receive benefits after the death of the holder. When this is detected, the amounts are claimed in full and there may be liability for fraud; The basic rule is simple: any fact that influences the right or value of the pension must be communicated immediately.
What the Administration usually does and how pensioners can defend themselves
The most common measures include suspension of payment while investigations are carried out, notification to return undue amounts, application of interest and fines and, in the most serious cases, criminal action for fraud. In addition to the financial impact, there are reputational and administrative consequences that may complicate future orders.
If you receive a notification, you have the right to know the reasons, consult the calculations and present a defense. Deadlines appear in the notification and tend to be short; Letting the deadline pass makes the defense more difficult or even unfeasible, especially when there are complex incompatibilities (such as CGA or disability), where legal or accounting support may be prudent.
How to reduce risk: prevention, records and rapid response
The safest way to avoid problems is to prevent: confirm the situation with Direct Social Security, immediately communicate the start of activity (self-employed or self-employed), review active benefits and avoid prohibited accumulations. Keeping evidence and asking for written confirmation helps protect a pension built up over decades.
If a problem has already been identified, the best option is to immediately contact , request detailed calculations and try to negotiate a payment plan. In many cases, when an undue payment results from an administrative error or in good faith, there are installment or reduction mechanisms.
When the sum claimed is large or there is a suspicion of fraud, it may be important to contact a Social Security lawyer or an accountant to help structure the defense, request medical expertise when applicable and negotiate with the Administration. The final recommendation remains: always communicate changes in activity, residence or any relevant fact, keep documentation and require written confirmation.
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