Repetition of old-age benefits obtained through fraud

Repetition of old-age benefits obtained through fraud

Article updated in September 2026

Old-age benefits obtained fraudulently can be subject to a claim for reimbursement covering a particularly long period. When a retirement pension, survivor's pension, or disability benefit has been paid in error, the relevant agency can request its repayment. But for how long can it take action, and what period can its claim cover?

In an important ruling delivered in plenary session on May 17, 2023, the Court of Cassation distinguished between two often confused issues: the time allowed for the fund to initiate its action and the period over which it can calculate the sums unduly paid.

In cases of fraud or misrepresentation, the fund has five years from the date of discovery to take action. If it meets this deadline, it can, however, reclaim benefits wrongly paid during the twenty years preceding its action.

This solution therefore exposes the insured person who has concealed or falsely declared their situation to a particularly large reimbursement claim.

What is an overpayment of old-age benefits?

An overpayment, also called an "undue payment", corresponds to a benefit paid when its beneficiary was not entitled to it or to an amount greater than that which should have been allocated to him.

In retirement matters, an overpayment can result from, among other things:

due to a calculation error made by the fund;
a change in the insured's situation that has not been taken into account;
income that has not been declared;
a change of residence or family situation;
the continuation of a payment after the disappearance of the conditions for allocation;
an incomplete or inaccurate declaration;
fraud intended to obtain or retain a benefit.

The distinction between error, simple omission, misrepresentation, and fraud is crucial. It can affect the statute of limitations, the period during which restitution is possible, and the amount ultimately claimed.

What is the repayment period for old-age benefits obtained through fraud?

The rules applicable to old-age benefits obtained by fraud must be distinguished from those for overpayments resulting from a simple error.

Article L. 355-3 of the Social Security Code provides, in principle, for a limitation period of two years from the payment of each undue benefit.

In other words, when the overpayment does not result from fraud or a false declaration, the pension organization must act within this specific timeframe.

The text expressly provides for an exception in cases of fraud or misrepresentation. In such cases, the two-year statute of limitations no longer applies.

The action for reimbursement then becomes subject to the general five-year limitation period provided for in Article 2224 of the Civil Code.

What is the applicable time limit in cases of fraud or false declaration?

In the event of fraud or a false declaration, the pension fund has five years to initiate its action for restitution.

This period begins from the day the organization discovered, or should have discovered, the facts enabling it to act.

The starting point therefore does not necessarily correspond to:

on the date of the false declaration;
on the date of the first unduly paid benefit;
on the date on which the insured's situation changed.

In principle, it corresponds to the moment when the fund had sufficient knowledge of the fraud or false declaration.

Determining this date can be a major issue in litigation. The insured party may argue, in particular, that the insurer previously possessed information that should have allowed it to identify the undue nature of the payments.

Does the five-year statute of limitations limit the amount claimed?

This was the central question submitted to the Court of Cassation.

In the case that gave rise to the judgment of the plenary assembly of May 17, 2023, No. 20-20.559, the beneficiary of a survivor's pension had failed to declare certain income likely to reduce the amount of this pension.

Following a resource audit, the National Old-Age Insurance Fund noted these omissions and requested the reimbursement of benefits paid in excess.

The Court of Appeal acknowledged that the fund had initiated its legal action within five years of discovering the fraud. However, it ruled that the fund could only claim sums paid during the five years preceding this discovery.

The Court of Cassation rejected this analysis.

The court ruled that the five-year statute of limitations only determines the time within which the fund must initiate legal action. It does not, on its own, limit the period taken into account when calculating the debt to be recovered.

Therefore, a distinction must be made:

The statute of limitations for taking action is five years from the discovery of the fraud or false declaration;
the period for which the overpayment can be recovered can be up to twenty years.
Can old-age benefits obtained through fraud be claimed over a twenty-year period?

Yes. When it acts within five years of discovering the fraud or false declaration, the fund can demand the return of benefits unduly paid during the twenty years preceding its action.

This limit results from Article 2232 of the Civil Code, which establishes a deadline of twenty years from the birth of the right.

The solution can be summarized as follows:

In the event of fraud or misrepresentation, the fund must act within five years of their discovery, but its claim may relate to benefits unduly paid during the twenty years preceding the action.

It should not be understood that the discovery of fraud automatically entitles one to claim twenty years' worth of benefits. It is still necessary that undue benefits were actually paid during that period and that their amount be precisely established.

Is an additional 10% allowance applicable?

Since December 25, 2022, Article L. 355-3 of the Social Security Code provides for an additional financial consequence when the undue payment results from fraud by the beneficiary.

The paying agency then recovers compensation equal to 10% of the benefits claimed. This compensation is intended to offset the administrative costs incurred in identifying and recovering the overpayment.

Thus, when the fund claims 30,000 euros of benefits obtained by fraud, an indemnity of 3,000 euros can, in principle, be added to it.

The text specifically addresses the possibility of fraud by the beneficiary. The classification adopted by the fund must therefore be carefully examined, particularly when the alleged facts could stem from an error, an oversight, or a simple inaccurate declaration rather than from fraudulent intent.

How is fraud or false declaration characterized?

Fraud generally involves intentional behavior aimed at obtaining or retaining a benefit to which the insured knows they are not entitled.

It can result in the following:

of the willful concealment of income;
of the production of false documents;
of knowingly inaccurate declarations;
of the artificial organization of a situation intended to preserve a benefit;
of the willful maintenance of information which has become inaccurate despite requests from the fund.

A false declaration can be established regardless of the most elaborate methods characteristic of fraud. It nevertheless requires identifying objectively inaccurate information that influenced the payment of the benefit.

The mere observation of an overpayment is not necessarily sufficient to prove fraud. The organization must establish the facts on which the alleged charge is based.

Does a mistake by the cash register preclude a refund?

An error made by the organization does not systematically prevent the recovery of sums paid in error.

Article L. 355-3 of the Social Security Code provides, however, special protection when the undue payment results from an error by the body and the insured is in good faith.

No reimbursement can be claimed when the beneficiary's resources are below the ceiling set for the allocation of the allowance to elderly salaried workers.

When a person's income falls between this ceiling and twice it, repayment cannot be automatically deducted from their benefits. The situation must be reviewed by the amicable settlement commission, which may grant a full or partial remission or arrange a payment plan.

However, these protections are not applicable in the same way when fraud is established.

What should a notification of an overpayment contain?

The person receiving a refund request must carefully check:

the nature of the benefits concerned;
the period retained by the fund;
the amount of each payment considered undue;
the income or information which should have been declared;
the date on which the fund claims to have discovered the facts;
the classification of fraud or false declaration;
the calculation of the additional 10% compensation;
the means and time limits for appeal mentioned in the notification.

A dispute may concern the very principle of the undue payment, its amount, the period considered, the statute of limitations, or the classification of fraud.

How to contest the reimbursement of a pension overpayment?

The notification sent by the fund normally indicates the applicable appeal procedures and deadlines. The dispute must generally be submitted first to the organization's amicable appeals board.

In the event of explicit or implicit rejection, the dispute can then be brought before the social division of the competent judicial court.

It is important to react quickly. Failure to contest the debt within the allotted time can make it final, even if its amount, calculation, or classification as fraudulent could have been challenged.

Before taking any action, the following must be gathered:

Declarations submitted to the fund;
proof of income;
resource questionnaires;
correspondence exchanged;
successive notifications received;
evidence establishing the date on which the fund became aware of the situation.
What lessons can be drawn from the judgment of May 17, 2023?

The recovery of old-age benefits obtained through fraud is subject to a particularly strict regime. The French Supreme Court's decision of May 17, 2023, significantly strengthens the recovery capabilities of pension funds by distinguishing the time limit for taking action from the period for calculating the overpayment.

Four main rules must be remembered:

The two-year limitation period applicable to ordinary overpayments is waived in cases of fraud or false declaration;
the fund has five years from the discovery of the facts to act;
when it acts within this period, it can claim benefits unduly paid during the twenty years preceding its action;
when the overpayment results from fraud by the beneficiary, compensation equal to 10% of the sums claimed may be added to the reimbursement.

Given the amounts that may be involved, any claim for reimbursement of old-age benefits obtained by fraud must be subject to a precise examination concerning the evidence of the facts, the statute of limitations, the period taken into account and the calculation of the claim.

Chaouki Gaddada, partner lawyer, assists organizations, companies and individuals in litigation related to social security law and in disputes concerning social benefits.