What Public Pension Funds Can Learn from Continuous Mortality Audits

By: Vincent Pellegrino, ABL Tech

Learn how continuous mortality audits help public pension funds reduce overpayments, improve data accuracy, and maintain compliance by identifying unreported deaths and missing participants.

This is an excerpt from NCPERS Fall 2025 issue of PERSist.

Public pension funds are entrusted with safeguarding financial security for their members and beneficiaries. Yet even well-managed systems face risks when participant records are incomplete, deaths go unreported, or beneficiaries cannot be located. These challenges often lead to overpayments, compliance concerns, and operational inefficiencies. 
 
Protecting the future requires pension funds to conduct timely audits that close data gaps, strengthen system integrity, and ensure accurate benefit delivery. 
 
The Hidden Risks in Pension Administration
For public pension funds, the greatest risks often stem not from investment performance but from recordkeeping. One critical example is the failure to report a participant's death. Over time, even a small number of errors can add up to significant financial losses. 
 
Case Study Lessons
Real-world examples illustrate how mortality verification uncovers issues that might otherwise remain hidden: 

• California County Retirement System (2024): A review of 8,000 records uncovered several deaths that had not been detected by the existing fund's vendor, identifying more than $300,000 in overpayments.
• New York Public Pension Plan (2025): An audit of nearly 200,000 records identified overpayments totaling multiple six figures. Detecting these issues enabled immediate corrective action and improved compliance moving forward. 
• Teamster Union Pension Fund (2024): An audit revealed 65 unreported deaths with dates before 2024. The removal of these records streamlined administration, reduced pension administration costs, and enhanced overall data accuracy.

Together, these examples highlight a critical truth: even well-run systems can miss mortality events or participant updates, thus affecting fund performance and compliance. 
 
Key Services That Address These Challenges 
Audits are the first step, but sustainable solutions require ongoing processes and tools that pension funds can rely on. These three services are designed to address the common risks revealed in audits: 

• Mortality Verification. Regularly confirming participant mortality through multiple data sources helps reduce overpayments and protect fund assets.
• Missing Participant Searches. Proactively locating individuals who have become unresponsive ensures benefits are delivered accurately and reduces compliance risk.
• Beneficiary Verification. Confirming and updating beneficiary records bridges the gap between participant deaths and rightful benefit payments.

When combined, these services strengthen data accuracy, improve compliance, and reduce risk for pension funds. 
 
Takeaways for Public Pension Funds

1. Small errors matter. Even a few missed deaths can mean six-figure losses.
2. Audits should be routine. They catch data gaps early and support compliance.
3. Data accuracy equals fiduciary strength. Trustees must prioritize record integrity alongside investment performance
4. Technology enhances efficiency. Advanced tools, including AI, help funds detect risks faster and verify participant status more accurately.  

Moving Forward with Confidence
Public pension funds cannot afford to leave data gaps unaddressed. As audits have shown, even a few missed deaths can create six-figure losses and regulatory headaches. The path forward lies in pairing regular audits with comprehensive solutions that address mortality verification, participant tracking, and beneficiary identification. 
 
By adopting these approaches, public pension funds can reduce risk, safeguard resources, and maintain the trust of the members they serve.  
 
Bios: Vincent Pellegrino is an accomplished executive with more than 25 years of experience in the longevity risk and life settlement markets. In his role as Vice President at ABL Tech, Vincent continues to drive business development initiatives, cultivate strategic partnerships, and apply his extensive knowledge to support the company's growth and client success. 
 
Vincent has held senior leadership roles at AIG, Credit Suisse, and Prudential Financial, where he shaped market strategies, enhanced operations and sales, and ensured regulatory compliance. His areas of expertise include managing longevity-linked asset portfolios, negotiating large life insurance acquisitions, and implementing safeguards to ensure fund solvency and reduce fraud risk. 
 
A recognized leader in his field, Vincent has consistently contributed to advancing industry best practices while aligning institutional objectives with market opportunities. His ability to balance innovation with rigorous financial discipline has positioned him as a trusted advisor and respected figure within the financial services community.