TPO upholds complaint after employer fails to paid contributions into scheme

The Pensions Ombudsman (TPO) has upheld a complaint against the Hospitality Recruitment Group, for failing to pay contributions into a worker’s Nest pension due to maladministration.

The group was ordered to pay £680.18 into the scheme, and ensure that the complainant, Miss S, is not financially disadvantaged by its maladministration by arranging for any investment loss to be calculated and paid back.

In addition to this, TPO ordered the employer to pay Miss S £1,000 for the “serious distress and inconvenience” caused.

Miss S complained that the employer had failed to pay her pension contributions into the Nest scheme between June 2022 to August 2022 and in June 2023, despite these pension contributions being deducted from her pay.

Whilst TPO asked the employer for a formal response repeatedly, the ombudsman confirmed that none of these requests received a response.

In his decision, deputy pensions ombudsman, Anthony Arter, stated: “The employer’s failure to pay employee and employer contributions into the scheme amounts to unjust enrichment and has caused Miss S to suffer a financial loss."

He also concluded that Miss S was entitled to a distress and inconvenience award in respect of the “serious ongoing non-financial injustice” suffered, arguing that this was also exacerbated by the employer’s failure to respond during the investigation.



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