The Pensions Ombudsman (TPO) has upheld two complaints against the Border Steelwork Structures Limited (BSSL) over failures to pay contributions and has formally reported the firm to The Pensions Regulator.

Both ‘Mr N’ and ‘Mr S’ had complained that pension contributions were not paid, and requested a reconciliation of their respective plans as a result.

The firm has now been ordered to pay both complainants £3,000 in recognition of the “exceptional distress and inconvenience” suffered.

It has also been directed to create a document confirming the contribution rates that should have been paid, when they should have been paid, and whether they were.

This will then be compared with what BSSL has actually paid to Scottish Widows, the administrators of the scheme, in respect of each member, with the firm to pay the difference within 28 days.

Once these payments have been reconciled, BSSL will also be required to make any additional payments to ensure that it reflects what it would have, had the payments been made on time.

As Mr S also claimed that he had been unable to claim his pension and been forced to rely on saving instead, the ombudsman has also outlined further directions that will apply if Mr S accesses his pension within 28 days of the reconciliation.

This would see BSSL required to make additional payments to bring Mr S’ pension options in line with what he would have received, had he been able to claim his pension from the end of June 2018.

For example, if a difference in annuity rates means Mr S could have received a higher sum in 2018, it shall pay the amount required to meet the annuity rate from June 2018, as well as the amount required to backdate the annuity to June 2018.

In addition, BSSL would also be required to establish and pay the interest due from when the payments would have been paid to date of settlement.

Both complainants joined the scheme in 2012, and after encountering problems with missing contributions, received a letter from BSSL in 2015, explaining that it had “an arrangement with Scottish Widows” and that any arrears would be “satisfied by 14th October 2015”.

However, in July 2017, Scottish Widows confirmed that the ongoing problems had been caused by delayed contributions from BSSL, who was in discussion with The Pensions Regulator, also notifying Mr S at this time that his plan held approximately £1,929.25 less than it should have done.

After several months of issues, both parties contacted the ombudsman’s Early Resolution Service (ERS) in late 2018.

However, BSSL failed to respond to ERS on a number of occasions, and the ombudsman’s office subsequently began a formal investigation.

TPO confirmed that at the time of the determination, still no further information had been received from BSSL despite assurances to the contrary.

In his decision, ombudsman Anthony Arter, stated that maladministration had occurred in both cases, and that both financial and non-financial injustice had occurred as a result.

Arter concluded: "The errors need to be corrected and the injustice addressed...Although The Pensions Regulator appears to be aware of the matter, I will be formally reporting BSSL to The Pensions Regulator."

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