Western Union Business Solutions and London Pensions Fund Authority (LPFA) have announced the results of Global Existence Transaction service trial.
The new pension payments product will enable identity checks for overseas pensioners.
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It allows Pensions administrators in the UK to verify the identity of pensioners living abroad as well as send payments to them.
In addition to saving 5% of funds, the trial allowed LPFA to update personal information, including changes of address and email updates.
The value of funds saved represents a percentage of the total pensions included in the initial trial, which was conducted in 2013.
Western Union Business Solutions UK managing director Jonathan Rees said that ensuring overseas pension payments go to the right person is an issue pension administrators increasingly need to contend with as more retirees move abroad.
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By GlobalData"The successful LPFA trial shows that significant savings can be made and the threat of fraud reduced," Rees added.
LPFA operations director Janice Watts said, "Our partnership with Western Union Business Solutions helps us ensure contributions are going to the right pensioners overseas."
Launched in the UK in 2013, Western Union Global Existence Transaction will be rolled out in other markets this year.
