The Pensions Ombudmsan (TPO) has upheld three complaints against Vicknarasa Kugathasan, trading as 5 Star Food and Wine Ltd, and has subsequently reported the respondent to The Pensions Regulator (TPR) for failure to comply with pensions legislation.

The complainants, Mrs L, Miss Y and Miss T, stated that the firm had failed to pay contributions, on their behalf, into a pension scheme when their employment was transferred in April 2015.

Kugathasan has now been directed to pay contributions from 8 April 2015 to the date he started making pension payments in November 2017 for each complainant, in addition to any potential investment return that the members may have missed out on as a result of the delay.

Each complainant has also been awarded £2,000 for the “extreme distress and inconvencience” experienced as a result of Vicknarasa Kugathasan failing to comply with his obligations under the Pensions Act 2004 and the Pension Protection Regulations, as well as TPO’s investigation itself.

The ombudsman, Anthony Arter, stated that Kugathasan had shown a “complete disregard of his responsibilities and legal requirements” by failing to engage with TPO or the applicants throughout the process.

He also emphasised that the respondent had failed to fulfil his legal duties despite both the applicants’ request and an adjudicator advising him to, amounting to maladministration.

The complainants were originally employed by the Co-operative Group, and were subsequently members of its pension scheme (PACE), but were informed in February 2015 that the store had been bought by the respondent.

On 7 April 2015, they then received notice that this would constitute a TUPE transfer, which would protect their benefits and working conditions, and that they would also be eligible for protection under the new Transfer of Employment (Pension Protection) Regulations 2005.

However, no pension arrangement was provided until November 2017, and even then, the respondent was deducting pension contributions from their salary but not always investing these appropriately, which TPR was looking into.

The respondent has still not provided a response to the complaints although being given “a number of opportunities to do so”.

This also follows a similiar decision by TPO against Border Steelworks Structures, with the ombudsman holding up two complaints against the firm for failure to pay contributions, and again, subsequently reporting the firm to TPR.

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