The Pensions Ombudsman (TPO) has upheld a complaint regarding £3,725 of unpaid employer pension contributions and ordered them to be repaid.

Mr Y complained to TPO that his employer, Genco Male Emporium, had failed to pay contributions into his scheme, Creative Pension Trust, despite deducting the contributions from his pay.

Alongside the repayment, TPO also ordered the employer to ensure that the complainant was not financially disadvantaged by its maladministration by arranging for any investment loss to be calculated and paid into the scheme.

Furthermore, the employer has also been told to pay Mr Y £1,000 for the serious distress and inconvenience caused to him.

Amid the complaint process, TPO contacted those in charge of the company several times as part of its investigation, but the employer failed to respond by the deadlines provided.

One of the company shareholders told TPO that the business had not traded for the past 12 months and was soon to be wound up.

TPO concluded that, as the employer had not responded to the substantive complaint points, it based its opinion solely on the information provided by Mr Y, which it had “no reason to doubt”.

“I find that the employee contributions were deducted but held back by the employer and not paid into the scheme,” TPO stated.

“The employer’s failure to pay employee and employer contributions into the scheme accounts amounts to unjust enrichment and has caused Mr Y to suffer a financial loss. The employer shall take remedial action to put this right.

“Mr Y is entitled to a distress and inconvenience award in respect of the serious ongoing non-financial injustice which he has suffered.

“Mr Y’s distress and inconvenience was exacerbated by the employer’s failure to try and resolve Mr Y’s complaint.”

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