The Pensions Ombudsman (TPO) has upheld a complaint against D-LEC Services Lincoln over its failure to pay an employee’s pension contributions into Nest.

Following its decision, TPO ordered D-LEC to pay all the contributions due to the complainant’s scheme account and pay him £1,000 for the serious distress and inconvenience he experienced.

The complainant, Mr R, was enrolled into the scheme between July 2018 and October 2019.

His contributions between these dates were deducted from his pay but held back by D-LEC and not paid into the scheme.

Despite being approached seven times by TPO, D-LEC did not respond to the enquiries or rectify the issue, and failed to respond to the adjudicator’s opinion.

D-LEC’s failure to pay the employee and employer contributions to the scheme amounted to “unjust enrichment” and cause financial loss to Mr R, according to TPO.

Within 28 days, the firm must pay Mr R £1,000, produce a schedule of the employer contributions that were due and the employee contributions deducted from Mr R’s pay in respect of the period of his employment, and send it to Mr R.

Once Mr R agrees with the information in the schedule, D-LEC has been ordered to pay the missing contributions into Nest, establish with Nest whether the late payments have resulted in fewer units being purchased in his account, and pay any reasonable administration fee that Nest may charge.

If any cost of making up the shortfall of units is incurred, D-LEC must also make up the payment.

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