The Pensions Ombudsman (TPO) has upheld a complaint against Lifeways Group for failing to pay contributions into a worker’s Nest pension scheme.

The employer was ordered to ensure that Ms Y, the complainant, is not financially disadvantaged and arrange for any investment losses to be calculated and paid into the scheme.

Additionally, Lifeways Group was ordered to pay Ms L £500 for the “serious distress and inconvenience" caused.

Ms Y found out in September 2022 that her pension contributions were not being put into her Nest account, despite being deducted from her pay.

After Ms Y formally complained, the employer paid the outstanding contributions.

However, Ms Y brought the issue to TPO, pointing out that this did not compensate for the investment loss incurred while her contributions were not invested.

TPO reached out to the employer but got no response. The case was passed to the adjudicator, who also got no reply, and then was passed to the pensions ombudsman, Dominic Harris.

Harris concluded that the employer's failure to act timely caused financial loss to Ms Y, resulting in maladministration, and that the company did not adequately engage with TPO.

He ordered the employer to take remedial action to put this right, stating: “The employer’s failure to pay all employee and employer contributions into the scheme on time amounts to unjust enrichment and has caused Ms Y to suffer a financial loss.

“This amounts to maladministration. The employer shall take remedial action to put this right.”

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