The Pensions Ombudsman (TPO) has upheld a complaint against an employer after the staff member found contributions had been deducted from his pay but not paid into the firm’s pension scheme.

The employer, ACF Consultants Ltd, has been ordered to pay the missing contributions to the Options Pension Scheme, to make up any shortfall in units and pay the employee – known as Mr D – £1,000 for the “serious distress and inconvenience” caused.

Mr D complained that his employer had not made contributions to his pension, despite taking deductions from his pay.

He also claimed the employer had not paid the correct level of employee and employer contributions, under the terms and conditions of his contract.

The employee began his job at ACF Consultants in October 2020. Soon afterwards, he asked his employer to increase his pension contributions to 8 per cent of his pay – an amount that he said the employer was committed to matching under the terms of his employment contract.

Mr D said he was willing to backdate payments in order to increase his pension.

According to the Ombudsman’s report, when Mr D resigned from his job in April 2021, he emailed the employer and said that he had “never received an adequate response” to his queries about the scheme, in spite of his asking “on multiple occasions”.

In its decision, TPO said: “I find that employee contributions were deducted but held back by the employer, and not paid into the scheme.

"The employer’s failure to pay employee and employer contributions into the scheme results in unjust enrichment and has caused Mr D to suffer financial loss.”

TPO ordered the employer to take “remedial action” to put the matter right, by paying the missing contributions and making up any shortfall in units due to the delayed payments.

The firm was also ordered to pay Mr D £1,000 in compensation “for the serious distress and inconvenience he has experienced".

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