The Pensions Ombudsman (TPO) has upheld a complaint against Vermuyden Care Limited for failing to pay contributions into a worker’s Nest pension due to maladministration.

The group was ordered to pay £1,278.03 into the scheme, as well as ensure that the complainant, Ms P, is not financially disadvantaged by its maladministration by arranging for any investment loss to be calculated and paid into the scheme.

In addition to this, the employer was ordered to pay Ms P a further £1,000 for the serious distress and inconvenience it has caused her.

Ms P complained that the employer, despite deducting contributions amounting to £1,278.03 from her pay, failed to pay them into the scheme.

Whilst TPO asked the employer for its formal response on 15 May 2024, and again on 29 May 2024, none of these requests received a response.

However, the employer responded to the adjudicator's opinion in July, stating that while it did not dispute that money was owed to the scheme, it would need to pay the contributions in instalments because of its financial situation.

It also said that it found the distress and inconvenience payment recommended by the adjudicator to be “excessive”, pointing out that employees can view all their payslips on a portal.

Given this, the employer offered to instead pay the outstanding unpaid contributions over a period of 10 months and pay Ms P £300 in compensation.

However, Ms P declined this offer, with the case then passed on to the deputy pension ombudsman, Anthony Arter, who agreed with the adjudicator’s first opinion.

In his decision, Arter stated: “I find that employee contributions were deducted but held back by the employer and not paid into the scheme. The employer failed to rectify this and did not engage with TPO or Ms P until the adjudicator sent his opinion to the parties concerned.

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

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