The Pensions Ombudsman (TPO) has upheld two complaints against M&G Olympic Products Ltd and ordered it to pay £1,000 to each of the two complaints for the “serious distress and inconvenience” caused.

The complainants, identified by TPO as Mr P and Mr Y, both alleged that M&G Olympic Products had deducted contributions from their pay but had failed to pay them into the Royal London Pension Plan.

Mr P stated that his missing contributions amounted to £2,246.80 and Mr Y stated that his missing contributions amounted to £1,433.25.

In its decision, the ombudsman concluded that Mr P and Mr Y’s contributions were deducted by M&G Olympic Products but held back and not paid into the plan, something that the employer failed to rectify.

The ombudsman also criticised M&G Olympic Products for not engaging with either the ombudsman office or the complainant’s themselves and for failing to respond to the caseworker’s opinion, which also ruled in favour of Mr P and Mr Y.

In both cases, the ombudsman directed that M&G Olympic Products should, within 28 days of the determination, pay Mr P and Mr Y £1,000 for "serious distress and inconvenience", produce a schedule showing the employee contributions deducted from the complaints pay in respect to the period of their employment, and forward the schedule to the complainants.

M&G Olympic Products were also directed to, within 14 days of receiving a request by the respondents, provide them with any reasonable additional information, in order to be able to check the details in the schedule.

The ombudsman further directed that, within 14 days of receiving confirmation from the complainants that they agree with the information on the schedule, M&G Olympic Products shall pay the missing contributions to the Royal London Pension Plan.

It was also directed to establish with the plan whether the late payment of contributions has meant that fewer units were purchased in each of the complainant’s account than they would have otherwise secured, had the contributions been paid on time; and pay any reasonable administration fee should the plan administrator charge a fee for carrying out the above calculation.

M&G Olympic Products were also directed to pay the cost of purchasing any additional units required to make up the shortfall, within 14 days of receiving a confirmation from Royal London of any shortfall in the complainants’ units.

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