TPO upholds complaint against employer for maladministration

The Pensions Ombudsman (TPO) has upheld a complaint against The University for Creative Arts for failing to pay contributions into a worker's pension despite deducting contributions from her pay.

The employer was ordered to pay the complainant, 'Ms I', £500 for the significant distress and inconvenience she experienced. It has already refunded the contributions taken from her pay.

Between April and July 2022, the employer deducted pension contributions from Ms I's pay, yet the Teachers' Pensions Scheme had no record of Ms I being enrolled.

Ms I was told by the employer that the payroll manager was looking into the issue and
attempting to update her account.

Following a complaint to TPO, the employer said that due to a change in how Teachers' Pensions required monthly data, technical problems were continually experienced in sending across data in the date format required.

However, it claimed that Ms I had been enrolled and that contributions deducted had been paid into the scheme.

Ms I requested a repayment form for a total of £808.60 in employee contributions and reconfirmed her complaint that a lack of communication from the employer caused her a great deal of distress and uncertainty.

The case was then passed on to an adjudicator, who concluded that an award of £500 to Ms I for non-financial injustice was appropriate in the circumstances.

Following this decision, the employer said the Teachers' Pensions Scheme would refund Ms I's pension contributions.

However, Ms I disagreed that the amount awarded for significant non-financial injustice reflected the level of distress and inconvenience she had experienced from the employer due to its malpractice and poor treatment, and the complaint was passed to the ombudsman, Dominic Harris, for consideration.

He agreed with the adjudicator's decision, concluding that the employer's failure to enrol Ms I into the scheme on time while continuing to deduct contributions from her pay amounts to maladministration.

"The employer failed to rectify this over an extended period and did not adequately engage with TPO or Ms I," he stated.

"Whilst the contributions have now been refunded to Ms I, I find the non-financial injustice suffered is significant, and the employer shall pay a distress and inconvenience award of £500."



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