Nest Pension Plan Cas 48077 K0C6 0 · CAS-48077-K0C6

CAS-48077-K0C6

Ombudsman’s Determination Applicant Mr R

Scheme NEST Pension Plan (the Plan)

Respondent M.A.G Engineering Company Ltd (the Employer)

Outcome

Complaint summary

Background information, including submissions from the parties On 11 July 2019, the Employer stopped paying contributions into the Plan.

In January 2020, Mr R first became aware pension contributions were not being paid into the Plan.

On 16 January 2020, Mr R was suspended from his employment with the Employer.

On 24 January 2020, Mr R wrote a letter to the Employer and raised the issue of unpaid pension contributions.

On 10 February 2020, Mr R left his employment with the Employer.

On 3 March 2020, Mr R received his P45 and two payslips from the Employer. Mr R says the Week 45 payslip showed the year to date pension contributions. These were split into £345.58 employee pension contributions and £259.15 employer pension contributions.

On 4 March 2020, Mr R brought his complaint to The Pensions Ombudsman (TPO). 1 CAS-48077-K0C6

Caseworker’s Opinion

• The Caseworker stated that TPO’s normal approach, in cases such as these, was to seek agreement from all parties on the facts of the complaint, including the dates and amounts of contributions involved. He said that, as the Employer had not responded to any of TPO’s communications, he had to base his Opinion solely on the information provided by Mr R.

• The Caseworker said that he had no reason to doubt the information provided by Mr R. So, in the Caseworker’s Opinion, on the balance of probabilities, contributions were paid late. As a result of its maladministration, Mr R was not in the financial position he ought to be in.

• In the Caseworker’s view, Mr R had suffered significant distress and inconvenience due to the Employer’s maladministration. The Caseworker was of the view that an award of £500 for non-financial injustice was appropriate in the circumstances.

2 CAS-48077-K0C6 Ombudsman’s decision

Directions

(i) pay Mr R £1,000 for the serious distress and inconvenience he has experienced;

(ii) produce a schedule (the Schedule) showing the employee contributions deducted from Mr R’s pay in respect of the period of his employment. The Schedule shall also include the corresponding employer contributions that were due to the Plan. The Schedule shall also include the dates that any payments were made into the Plan; and

(iii) forward the Schedule to Mr R.

(i) pay any missing contributions to the Plan;

(ii) establish with the Plan whether the late payment of contributions has meant that fewer units were purchased in Mr R’s Plan account than he would have otherwise secured, had the contributions been paid on time; and

(iii) pay any reasonable administration fee should the Plan administrator charge a fee for carrying out the above calculation.

3 CAS-48077-K0C6 Within 14 days of receiving confirmation from NEST of any shortfall in Mr R’s units, pay the cost of purchasing any additional units required to make up the shortfall.

Anthony Arter

Pensions Ombudsman 15 November 2022

4 CAS-48077-K0C6 Appendix Date of Payment Employee contributions Employer contributions

12/01/2021 £7.76 £5.82

12/01/2021 £7.19 £5.39

12/01/2021 £7.76 £5.82

12/01/2021 £21.80 £16.35

12/01/2021 £7.76 £5.82

12/01/2021 £8.80 £6.60

12/01/2021 £10.36 £7.77

12/01/2021 £7.19 £5.39

12/01/2021 £18.16 £13.62

12/01/2021 £25.10 £18.82

12/01/2021 £7.76 £5.82

12/01/2021 £13.31 £9.98

12/01/2021 £7.19 £5.39

12/01/2021 £7.76 £5.82

12/01/2021 £7.19 £5.39

12/01/2021 £7.76 £5.82

12/01/2021 £7.76 £5.82

12/01/2021 £7.19 £5.39

12/01/2021 £7.76 £5.82

12/01/2021 £8.28 £6.31

12/01/2021 £17.82 £13.36

12/01/2021 £7.19 £5.39

12/01/2021 £7.76 £5.82

12/01/2021 £15.22 £11.41

13/01/2021 £27.52 £27.52

5 CAS-48077-K0C6 13/01/2021 £3.60 £2.70

13/01/2021 £16.08 £12.06

13/01/2021 £16.08 £12.06

13/01/2021 £7.76 £5.82

13/01/2021 £7.76 £5.82

15/01/2021 £7.76 £5.82

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