The Pensions Ombudsman (TPO) has upheld a complaint against Pod Design & Build Ltd for failing to pay contributions into a worker’s Nest pension despite deducting them from his pay.

The employer was ordered to pay £1,064.58 into the scheme, as well as ensure that the complainant, Mr N, is not financially disadvantaged by its maladministration, by arranging for any investment loss to be calculated and paid back into the scheme.

In addition to this, the employer has been ordered to pay Mr N £1,000 for the “serious distress and inconvenience” caused.

Mr N complained that the employer, despite deducting contributions from his pay, failed to pay them into the scheme.

The scheme administrator informed the complainant in April 2022 that neither his employee nor employer pension contributions had been paid into the scheme by the employer, covering the period since he began working there in July 2021.

In May 2023, Mr N complained to his now former employer about the unpaid contributions and brought his complaint to TPO in September of the same year.

Mr N provided evidence to TPO, including payslips, a record from the scheme administrator and other supporting documents for his claim.

In November and December 2023, TPO reached out to the employer multiple times regarding Mr N's complaint, but did not receive a response.

Almost a year and a half later, TPO contacted the employer at its registered address with Companies House, to which the employer responded that it had not been monitoring its previous email address.

The employer added that the company had stopped trading shortly after Mr N left its employment, but would contact its accountant about Mr N’s pension contribution.

TPO then contacted the employer again, requesting proposals for resolving Mr N’s complaint.

A month later, the employer told TPO it was working to provide a copy of Mr N’s payslips and the amount of pension contributions due to him.

However, TPO did not receive a further submission from the employer, despite the company's status remaining active on Companies House.

The complaint was first reviewed by a TPO adjudicator, who determined that the employer needed to take further action. It was then referred to the deputy pensions ombudsman, Camilla Barry, who agreed with the adjudicator’s opinion.

Barry confirmed that the information provided by Mr N was accurate, and that he was owed £608.33 in employee contributions and £456.25 in employer contributions, amounting to £1,064.58.

The deputy pensions ombudsman also said that the employer’s failure to pay all employee and employer contributions into the scheme amounted to “unjust enrichment” and had caused Mr N to suffer a financial loss.

Barry stated: "The employer shall take remedial action to put this right. Mr N 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 properly respond during TPO's investigation into Mr N's complaint.”

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