The Pensions Ombudsman (TPO) has upheld a complaint against Mid Air Site Services Ltd for failing to pay contributions into a worker’s pension due to maladministration.

The group was ordered to pay £2,792.27 into the scheme, as well as ensure that the complainant, Mr W, was not financially disadvantaged by its maladministration by arranging for any investment loss to be calculated and paid into the scheme.

The employer was also ordered to pay Mr W £1,000 for the “serious” distress and inconvenience it has caused him.

On 3 January 2023, the scheme’s administrator reported the employer to The Pensions Regulator as contributions were over 90 days late.

In December 2023, Mr W complained to TPO that the employer, despite deducting contributions from his pay, failed to pay them into the scheme.

TPO asked the employer for its formal response to Mr W’s complaint on 31 July 2024 which was repeated on 14 August. Neither of these requests received a response.

The case was then passed on to the adjudicator who concluded that further action was required by the employer as it had failed to remit the contributions due to the scheme.

The adjudicator argued that Mr W had suffered “serious” distress and inconvenience due to the employer’s maladministration and an award of £1,000 for non-financial injustice was appropriate in the circumstances.

The employer did not respond to the adjudicator's decision, so the complaint was passed over to the deputy ombudsman, Anthony Arter, who agreed with the adjudicator's opinion.

In his decision, Arter stated: “Mr W has complained that the employer has not paid all the contributions due to his trust account.

“I find that the employee contributions were deducted but held back by the employer and not paid into the trust.

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

“Mr W is entitled to a distress and inconvenience award in respect of the serious ongoing non-financial injustice which he has suffered. This was exacerbated by its failure to respond during TPO’s investigation into Mr W’s complaint.”

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