The Pensions Ombudsman (TPO) has upheld a complaint against Quality Villas Ltd after finding that the company failed to pay contributions into a worker’s Nest pension despite deducting contributions from her pay over 18 months.

The employer was ordered to pay £1,910.75 into the scheme, as well as determine whether the delay in contributions had financially disadvantaged the complainant (Mrs H) and to make good any such shortfall, including any reasonable administration costs.

In addition, the employer has been ordered to pay Mrs H £1,000 in recognition of the serious distress and inconvenience caused by the maladministration and the employer’s failure to engage with the dispute process.

Mrs H raised concerns that between November 2021 and May 2023, contributions taken from her salary had not been passed on to her workplace pension scheme.

She submitted payslips showing regular monthly deductions of £85.87 from November 2021 through June 2022. However, these were not reflected in her pension account.

Contributions ceased to be deducted from July to December 2022, but from August 2022 to May 2023, Mrs H said she resumed making direct payments of £85 per month herself, still without the funds reaching her pension scheme.

In addition to the missing employee contributions, TPO found that Quality Villas also failed to make employer contributions over the same period.

Employer payments of £64.41 per month had initially been made, but these stopped after June 2022, with only one further contribution recorded in July 2022.

Despite repeated attempts by TPO to contact Quality Villas between May and August 2024, the company did not respond to any correspondence.

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 did not wish to respond to 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 failed to rectify this and resolve Mrs H’s complaint following the adjudicator’s opinion.

“I find that the employer has acted in breach of the scheme rules by not paying the contributions due between November 2021 and May 2023.

“The employer's failure to pay all employee and employer contributions into the scheme amounts to unjust enrichment and has caused Mrs H to suffer financial loss.

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

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