The Pensions Ombudsman (TPO) has upheld a complaint against Cru Construction (Services) Ltd for failing to pay contributions into a worker’s Nest pension despite deducting contributions from his pay.

The employer was ordered to pay £4,967.24 into the scheme, as well as ensure that the complainant, Mr E, is not financially disadvantaged by its maladministration by arranging for any investment loss to be calculated and paid into the scheme.

In addition, the employer has been ordered to pay Mr E £1,000 for the “serious distress and inconvenience” it caused him.

Mrs E complained that the employer, despite deducting contributions from his pay, had failed to pay into the scheme.

When initially contacted by TPO in relation to the complaint in September 2023, the employer said it would meet with its accountant to resolve the issue and pay any outstanding contributions owed to the scheme.

In October, TPO emailed the employer asking for an update once it had met with its accountant, to which it said that it had met with an accountant and asked it to look into the situation. The employer said its accountant would contact TPO directly.

TPO then asked the employer for another update multiple times later in the month, but the employer stated that there was no update.

TPO then phoned the employer for an update in November, to which the employer explained it was having difficulties contacting the scheme administrator, but said it had started repaying contributions on the system.

TPO proceeded to chase the employer for an update in January and February, to which the employer informed TPO that it was dealing with court proceedings for one of its clients which was taking up a lot of its time.

The scheme administrator shared further information on the case in August 2024, which confirmed that contributions between 13 June 2022 and 28 July 2024 had not been recieved.

The scheme administrator also confirmed at this time that it had reported the employer to The Pensions Regulator for non-payment of pension contributions between 29 April 2024 and 5 May 2024.

Despite further communication between the scheme administrator, accountant, employer and TPO, including an agreed informal resolution in October 2024, Mr E informed TPO in November 2024 that the employer had not made any payments into the scheme.

The employer also failed to make any payments into the scheme by 31 March 2025 so the complaint was reopened and passed to the formal opinion stage.

TPO then emailed the employer’s accountant and asked for a breakdown of the employee and employer contributions but received no response.

The case was passed on to the adjudicator, who concluded that further action was required by the employer as it had failed to remit the contributions due to the scheme.

The employer disagreed with the adjudicator’s opinion and the complaint was passed to deputy pensions ombudsman, Camilla Barry, who agreed with the adjudicator’s opinion.

In her decision, Barry stated: “I find that employee contributions were deducted but held back by the employer and not paid into the scheme.

“The employer filed to rectify this and did not adequately engage with TPO or adhere to the October agreement.

“I find that the employer has acted in breach of the scheme rules by not paying the contributions due between July 2022 and August 2024.

“The employer’s failure to pay all employee and employer contributions into the scheme amounts to unjust enrichment and has caused Mr E to suffer a financial loss.

“This amounts to maladministration. The employer shall take remedial action to put this right.”

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