Nest · CAS-105309-T9F3

CAS-105309-T9F3

Ombudsman’s Determination Applicant Ms Z

Scheme NEST (the Scheme)

Respondent Bright Learners Ltd (the Employer)

Outcome

Complaint summary

Background information, including submissions from the parties The sequence of events is not in dispute, so I have only set out the salient points.

In March 2021, Ms Z began her employment with the Employer. The Employer was a family company run by Mr L and his daughter Ms L.

Between April 2021 and May 2022, the Employer failed to pay pension contributions into the Scheme.

On 15 August 2022, Ms L resigned from her position as a director of the Employer. However, she remained involved in the company.

On 10 May 2023, Ms Z brought her complaint to The Pensions Ombudsman (TPO).

Ms Z provided copies of the payslips that she held for the period from April 2021 to May 2022, which detailed the pension contributions deducted from her pay and the 1 CAS-77197-F9W8 corresponding employer contributions. These deductions amounted to £1,023.05. A breakdown of the deductions has been included in the Appendix.

Between September 2023 and April 2024, TPO contacted the Employer via emails and telephone calls on numerous occasions. The Employer continued to accept that contributions were owed and made several promises to pay. However, to date, the employer contributions remain unpaid.

2 CAS-77197-F9W8 Caseworker’s Opinion

• The Caseworker stated that TPO’s normal approach, in cases such as these, was to seek agreement from all parties on the facts of the complaint, including the dates and amounts of contributions involved. Ms Z has complained that her pension contributions have not been paid into the Scheme. The Employer agreed on 31 August 2023, that contributions were owed to Ms Z. On 30 April 2024, the Employer paid the employee contributions of £584.64 directly to Ms Z. However, having reviewed the available evidence, it was the Caseworker’s opinion that not all contributions were paid, as the employer contributions of £438.41 remained outstanding. So, an error has occurred, and the Employer is responsible.

• The Caseworker said that the Employer agreed on several occasions between April and June 2024, that it would pay the employer contributions into the Scheme. However, despite the Employer’s assurances that it would pay £438.41 into the Scheme, no evidence has been provided by it that the remaining contributions have been paid. So, in the Caseworker’s Opinion, contributions were owed to Ms Z but have not been paid into the Scheme. As a result of its maladministration, Ms Z was not in the financial position she ought to be in.

• In the Caseworker’s view, Ms Z had suffered significant distress and inconvenience due to the Employer’s maladministration. The Caseworker was of the opinion that an award of £500 for non-financial injustice was appropriate in the circumstances.

Ombudsman’s decision

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Directions

(i) pay Ms Z £500 for the significant distress and inconvenience she has experienced;

(ii) ’s

(iii) establish with the Scheme whether the late payment of contributions has meant that fewer units were purchased in Ms Z’s Scheme account than she would have otherwise secured, had the contributions been paid on time; and

(iv) pay any reasonable administration fee should the Scheme administrator charge a fee for carrying out the above calculation.

Anthony Arter CBE

Deputy Pensions Ombudsman

8 July 2023

4 CAS-77197-F9W8 Appendix

Date Employee Contributions (PAID) Employer Contributions Apr-21 41.54 31.15 May-21 41.54 31.15 Jun-21 41.54 31.15 Jul-21 41.54 31.15 Aug-21 41.54 31.15 Sep-21 41.54 31.15 Oct-21 41.54 31.15 Nov-21 41.54 31.15 Dec-21 41.54 31.15 Jan-22 41.54 31.15 Feb-22 41.54 31.15 Mar-22 44.62 33.46 Apr-22 41.54 31.15 May-22 41.54 31.15 Total 584.64 438.41

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