The Pensions Ombudsman (TPO) has upheld a complaint against Vermuyden Care Limited for failing to pay contributions into a worker’s Nest pension due to maladministration.

The group was ordered to pay £1,018.48 of missing contributions into the scheme and make good any shortfall in units.

In addition to this, the employer was ordered to pay Miss N £1,000 for the “serious” distress and inconvenience it has caused her.

Miss N complained despite deducting contributions from her pay, the employer failed to pay them into the trust. On 20 April 2023, Miss N brought her complaint to TPO.

On 11 January 2024, the employer contacted TPO and said it was unsure how to calculate investment loss on outstanding contributions.

TPO told the employer that these could be calculated by contacting the trust directly and provided contact details to help with the process.

In January and February 2024, TPO chased the employer, but the employer failed to respond by the set deadline.

On 18 June TPO issued an opinion to the employer upholding the complaint and provided a deadline of 2 July 2024 for it to provide any comments or evidence to support its position.

TPO updated the employer on 4 July that the deadline for any comments on the opinion had passed and the case would progress to determination.

The employer responded on 4 July but said it was unable to make the payment due to the business struggling financially. The employer asked if there was any way of arranging a payment plan.

TPO informed the employer that a payment plan would have to be arranged with Nest and the case would proceed to determination as the employer had not arranged these payments following the outcome of the opinion.

The case was then passed on to the adjudicator who said further action was required by the employer as it had failed to pay the contributions due to the trust.

The adjudicator also found that Miss N had suffered distress and inconvenience due to the employer’s maladministration and said that an award of £1,000 for non-financial injustice was appropriate for the circumstances.

Whilst the employer did not accept the adjudicator’s opinion, and the complaint was passed over to the deputy ombudsman, Anthony Arter, he agreed with the adjudicator's opinion.

In his decision, Arter stated: “All employers are expected to take their pension enrolment duties seriously.

“The employer’s failure to pay the deducted employee contributions into the trust as well as its failure to make employer contribution amounts to maladministration.

“It also means the employer has benefited from not meeting its pension liabilities and has been unjustly enriched as a result.

“This will have caused Miss N to suffer a considerable financial loss. The employer shall take remedial action to put this right.”

---