The Pensions Ombudsman (TPO) has upheld a complaint against Paint Hale Ltd and directed the employer to pay £1,000 for the “serious distress and inconvenience” caused.

The complainant, identified in the ruling as Miss E, alleged that Paint Hale had failed to pay contributions into her Nest pension plan despite deducting contributions totalling £302.46 from her pay.

TPO wrote to Paint Hale to ask for more information in response to Miss E’s complaint on two occasions, although neither of these requests received a response.

The ombudsman therefore stated that the available evidence supported the view that Miss E’s contributions were deducted but held back by Paint Hale and not paid into the Nest pension plan, something that Paint Hale had failed to rectify.

In addition to this, the ombudsman concluded that Paint Hale’s failure to pay employee and employer contributions into the Nest pension plan amounted to “unjust enrichment” and caused Miss E to suffer “a financial loss".

In light of this, the employer was ordered to pay Miss E £1,000 for the serious distress and inconvenience experienced, as well as produce a schedule showing the employee contributions deducted from Miss E’s pay in respect of the period of her employment, and forward the schedule to Miss E.

Paint Hale was also directed to provide Miss E with any reasonable additional information in order for her to be able to check the details in the schedule, within 14 days of receiving a request by Miss E.

Additionally, within 14 days of receiving confirmation that Miss E agrees with the information on the schedule, Paint Hale was directed to pay the missing contributions to the Nest pension plan.

Paint Hale was also directed to establish with Nest whether the late payment of contributions meant that fewer units were purchased in Miss E’s plan account than she would have otherwise secured had the contributions been paid on time, and to pay the cost of purchasing any additional units required to make up the shortfall.

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