The Pensions Ombudsman (TPO) has upheld a complaint against Premier Group Recycling Ltd for failing to pay contributions into a worker’s Nest pension due to maladministration.

The employer was ordered to pay £3,988.60 into the pension scheme, as well as ensure that the complainant, Mr L, was not financially disadvantaged by its maladministration by arranging for any investment loss to be calculated and paid into the scheme.

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

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

The complainant contacted the scheme administrator about unpaid employer contributions but was advised to speak to The Pensions Regulator (TPR) to which he submitted an online complaint.

TPO contacted the employer about the missing contributions and the employer then agreed to make payment into the scheme for the unpaid contributions.

However, Mr L informed TPO that the scheme had not received these payments.

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 in its view, Mr L had suffered serious distress and inconvenience due to the employer’s maladministration and was of the opinion that an award of £1,000 for non-financial injustice was appropriate in the circumstances.

Although the employer accepted the adjudicator's decision, it did not adhere to the actions outlined, so the complaint was passed over to the ombudsman, Dominic Harris, who agreed with the adjudicator's opinion.

In his decision, Harris said: “Mr L has complained that the employer has not paid all the contributions due to his scheme between February 2020 and June 2022.

“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 adequately engage with TPO or Mr L during the complaints process.  

“The employer’s failure to pay employee and employer contributions into the scheme amounts to unjust enrichment and has caused Mr L to suffer a financial loss.

"The employer shall take remedial action to put this right.”

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