Nest · CAS-101562-B0Y7

CAS-101562-B0Y7

Ombudsman’s Determination Applicant Mr L

Scheme NEST (the Scheme)

Respondent Premier Group Recycling Ltd (the Employer)

Outcome

Complaint summary

Background information, including submissions from the parties The sequence of events is not in dispute, so I have only set out the salient points.

On 1 April 2003, Mr L began his employment with the Employer.

Mr L’s contract of employment states in relation to pensions:-

“PENSION AND PENSION SCHEME

There is a stakeholder pension scheme applicable to your employment. A Pensions Scheme contracting-out certificate is not in force in respect of your employment.”

1 CAS-101562-B0Y7 Mr L also provided a copy of an employee handbook that he said he was provided, together with his contract of employment. The employee handbook states, amongst other things:-

“STAKEHOLDER PENSION

We operate a stakeholder pension scheme that enables you to save for your retirement using your own money, together with tax relief and investment returns. You can build up a pension fund which you may use to buy an annuity when you are older or retire. The scheme is operated separately to any other pension provision and it is at your discretion and risk whether or not you contribute. The pension provider details are available from the Operations Manager.”

On 9 November 2017, Mr L was enrolled into the Scheme.

On 26 November 2019, Mr L received a letter from the Scheme administrator which said it had reported the Employer to The Pensions Regulator (TPR) for failure to pay contributions between 3 August 2019 to 9 August 2019.

On 23 March 2021, Mr L received a further letter from the Scheme administrator which said it had reported the Employer to TPR for non-payment of contributions into the Scheme.

The last payment the Employer made into the Scheme was in May 2022. Mr L says this was for three outstanding weeks of contributions.

On 14 June 2022, Mr L left his employment with the Employer.

On 29 June 2022, Mr L contacted the Scheme administrator about the unpaid contributions. He was told it only reported employers to TPR regarding non-payments of contributions and was advised to speak to TPR.

On 30 June 2022, Mr L submitted an online complaint to TPR.

On 20 February 2023, Mr L complained to The Pensions Ombudsman (TPO).

On 15 January 2023, Mr L submitted a formal complaint to the Employer. Mr L stated that between February 2020 and June 2022, the Employer did not pay pension contributions due to the Scheme.

On 1 March 2023, Mr L wrote to the Employer and requested that his complaint be responded to before 13 March 2023.

On 8 March 2023, the Employer responded to Mr L and said it would make sure all outstanding pension contributions were paid into the Scheme before 31 March 2023.

On 23 April 2023, Mr L contacted TPO and asked for an investigation into his complaint as the missing contributions had not been paid.

2 CAS-101562-B0Y7 Between 12 June 2024 and 19 August 2024, there was email correspondence between Mr L, the Employer and TPO. In summary:-

• The Employer provided TPO with a spreadsheet from the Scheme administrator (the Spreadsheet). The Spreadsheet outlined Mr L’s pensionable pay and showed that £2,279.05 in employee contributions and £1,709.55 in employer contributions, a total of £3,988.60 was due to the Scheme. This is shown in Appendix One.

• The Employer agreed to make a payment into the Scheme for the unpaid contributions.

On 6 September 2024, Mr L emailed TPO and confirmed he had not received any payments into the Scheme from the Employer and requested a formal investigation into his complaint.

Mr L provided copies of the payslips issued to him in respect of his service with the Employer for the period from October 2020 to June 2022. Mr L was unable to provide payslips for the following weeks:-

• February 2020 to October 2020

• 13 November 2020

• 20 November 2020

• 12 February 2021

• 30 April 2021

• 14 May 2021

• 28 May 2021

• 4 June 2021

• 27 August 2021

• 31 December 2021.

The available payslips show the pension contributions deducted from Mr L’s pay during this period, however they do not show the corresponding employer contributions which would also have been due to the Scheme. The information from the payslips which show the employee contributions deducted from Mr L’s pay is provided in Appendix Two.

Mr L also provided copies of his bank statements between February 2020 and June 2022, which showed his net salary, including the weeks where Mr L was unable to provide payslips.

3 CAS-101562-B0Y7 Adjudicator’s Opinion Mr L’s complaint was considered by one of our Adjudicators who concluded that further action was required by the Employer as it had failed to remit the contributions that were due to the Scheme. The Adjudicator’s findings are summarised below:-

• The Adjudicator stated that TPO’s normal approach, in cases such as these, was to seek agreement from all parties on the facts of the complaint, including the dates and amounts of contributions involved.

• The Adjudicator said that he had no reason to doubt the information provided by Mr L. The Spreadsheet also showed the outstanding employer and employee contributions due to the Scheme which the Employer did not dispute. So, in the Adjudicator’s Opinion, on the balance of probabilities, contributions had been deducted from Mr L’s salary, but had not been paid into the Scheme. In addition, the Employer had not paid any of the employer contributions that were due over the same period. As a result of its maladministration, Mr L was not in the financial position he ought to be in.

• In the Adjudicator’s view, Mr L had suffered serious distress and inconvenience due to the Employer’s maladministration. The Adjudicator was of the opinion that an award of £1,000 for non-financial injustice was appropriate in the circumstances.

Ombudsman’s decision

4 CAS-101562-B0Y7

Directions

(i) pay Mr L £1,000 for the serious distress and inconvenience he has experienced;

(ii) £3,988.60 the Scheme £2,279.05 and employer contributions of £1,709.55.

(iii) establish with the Scheme administrator whether the late payment of contributions has meant that fewer units were purchased in Mr L’s Scheme account than he would have otherwise secured, had the contributions been paid on time; and

(iv) pay any reasonable administration fee should the Scheme administrator charge a fee for carrying out the above calculation.

Dominic Harris

Pensions Ombudsman

15 January 2025

5 CAS-101562-B0Y7 Appendix One

Date of Pay Period NEST Pensionable Pay Employee Employer Payment Contributions Contributions

21/02/2020 46 £519.70 £20.79 £15.60

28/02/2020 47 £519.70 £20.79 £15.60

06/03/2020 48 £519.70 £20.79 £15.60

13/03/2020 49 £519.70 £20.79 £15.60

20/03/2020 50 £455.20 £18.21 £13.66

27/03/2020 51 £455.20 £18.21 £13.66

03/04/2020 52 £193.68 £7.75 £5.82

10/04/2020 1 £249.26 £6.10 £4.67

17/04/2020 2 £354.67 £14.19 £10.65

24/04/2020 3 £354.64 £14.19 £10.64

01/05/2020 4 £354.64 £14.19 £10.64

08/05/2020 5 £354.64 £14.19 £10.64

15/05/2020 6 £354.64 £14.19 £10.64

22/05/2020 7 £356.64 £14.27 £10.70

29/05/2020 8 £356.64 £14.27 £10.70

05/06/2020 9 £356.64 £14.27 £10.70

12/06/2020 10 £356.64 £14.27 £10.70

19/06/2020 11 £356.64 £14.27 £10.70

26/06/2020 12 £356.64 £14.27 £10.70

03/07/2020 13 £356.64 £14.27 £10.70

10/07/2020 14 £356.64 £14.27 £10.70

17/07/2020 15 £356.64 £14.27 £10.70

24/07/2020 16 £356.64 £14.27 £10.70

31/07/2020 17 £356.64 £14.27 £10.70

6 CAS-101562-B0Y7 07/08/2020 18 £457.57 £18.31 £13.73

14/08/2020 19 £453.20 £18.13 £13.60

21/08/2020 20 £453.20 £18.13 £13.60

28/08/2020 21 £474.70 £18.99 £14.20

04/09/2020 22 £485.45 £19.42 £14.57

11/09/2020 23 £453.2 £18.13 £13.6

18/09/2020 24 £453.2 £18.13 £13.6

25/09/2020 25 £485.45 £19.42 £14.57

02/10/2020 26 £517.7 £20.71 £15.54

09/10/2020 27 £517.7 £20.71 £15.54

16/10/2020 28 £517.70 £20.71 £15.54

23/10/2020 29 £453.20 £18.13 £13.60

30/10/2020 30 £453.20 £18.13 £13.60

06/11/2020 31 £496.2 £19.85 £14.89

12/11/2020 32 £517.7 £20.71 £15.54

20/11/2020 33 £430.27 £17.22 £12.91

27/11/2020 34 £430.27 £17.22 £12.91

04/12/2020 35 £453.19 £18.13 £13.60

11/12/2020 36 £453.19 £18.13 £13.60

18/12/2020 37 £453.19 £18.13 £13.60

29/12/2020 38 £453.19 £18.13 £13.60

30/12/2020 39 £453.19 £18.13 £13.60

08/01/2021 40 £451.04 £18.05 £13.54

15/01/2021 41 £450.33 £18.02 £13.51

22/01/2021 42 £453.19 £18.13 £13.60

29/01/2021 43 £453.19 £18.13 £13.60

05/02/2021 44 £453.19 £18.13 £13.60

7 CAS-101562-B0Y7 12/02/2021 45 £453.19 £18.13 £13.60

19/02/2021 46 £453.19 £18.13 £13.60

26/02/2021 47 £453.19 £18.13 £13.60

05/03/2021 48 £453.19 £18.13 £13.60

12/03/2021 49 £453.19 £18.13 £13.60

19/03/2021 50 £821.53 £32.87 £24.65

26/03/2021 51 £821.53 £32.87 £24.65

31/03/2021 52 £453.19 £18.13 £13.60

09/04/2021 1 £454.63 £18.19 £13.64

16/04/2021 2 £454.63 £18.19 £13.64

23/04/2021 3 £453.19 £18.13 £13.60

30/04/2021 4 £453.19 £18.13 £13.60

07/05/2021 5 £453.19 £18.13 £13.60

14/05/2021 6 £453.19 £18.13 £13.60

21/05/2021 7 £453.19 £18.13 £13.60

28/05/2021 8 £453.19 £18.13 £13.60

04/06/2021 9 £453.19 £18.13 £13.60

11/06/2021 10 £454.63 £18.19 £13.64

18/06/2021 11 £453.19 £18.13 £13.60

24/06/2021 12 £453.19 £18.13 £13.60

01/07/2021 13 £453.19 £18.13 £13.60

08/06/2021 14 £453.19 £18.13 £13.60

16/07/2021 15 £453.19 £18.13 £13.60

23/07/2021 16 £453.19 £18.13 £13.60

30/07/2021 17 £453.19 £18.13 £13.60

06/08/2021 18 £453.19 £18.13 £13.60

13/08/2021 19 £453.19 £18.13 £13.60

8 CAS-101562-B0Y7 20/08/2021 20 £453.19 £18.13 £13.60

27/08/2021 21 £453.19 £18.13 £13.60

03/09/2021 22 £453.19 £18.13 £13.60

10/09/2021 23 £453.19 £18.13 £13.60

17/09/2021 24 £453.20 £18.13 £13.60

24/09/2021 25 £489.03 £19.57 £14.68

01/10/2021 26 £521.27 £20.86 £15.64

08/10/2021 27 £560.68 £22.43 £16.83

15/10/2021 28 £560.68 £22.43 £16.83

22/10/2021 29 £474.70 £18.99 £14.25

29/10/2021 30 £524.85 £21.00 £15.75

05/11/2021 31 £575.01 £23.01 £17.26

12/11/2021 32 £453.2 £18.13 £13.60

19/11/2021 33 £453.2 £18.13 £13.60

26/11/2021 34 £575.01 £23.01 £17.26

03/12/2021 35 £453.20 £18.13 £13.60

10/12/2021 36 £625.16 £25.01 £18.76

17/12/2021 37 £503.36 £20.14 £15.11

24/12/2021 38 £456.78 £18.28 £13.71

31/12/2021 39 £453.20 £18.13 £13.60

07/01/2022 40 £453.20 £18.13 £13.60

14/01/2022 41 £467.53 £18.71 £14.03

21/01/2022 42 £474.70 £18.99 £14.25

28/01/2022 43 £517.69 £20.71 £15.54

04/02/2022 44 £467.53 £18.71 £14.03

11/02/2022 45 £521.27 £20.86 £15.64

18/02/2022 46 £478.28 £19.14 £14.35

9 CAS-101562-B0Y7 25/02/2022 47 £460.37 £18.42 £13.82

04/03/2022 48 £496.19 £19.85 £14.89

11/03/2022 49 £528.43 £21.14 £15.86

18/03/2022 50 £474.70 £18.99 £14.25

25/03/2022 51 £453.20 £18.13 £13.60

01/04/2022 52 £532.02 £21.29 £15.97

08/04/2022 1 £499.77 £20.00 £15.00

14/04/2022 2 £492.61 £19.71 £14.78

22/04/2022 3 £496.19 £19.85 £14.89

29/04/2022 4 £539.18 £21.57 £16.18

06/05/2022 5 £592.92 £23.72 £17.79

13/05/2022 6 £453.20 £18.13 £13.60

20/05/2022 7 £567.84 £22.72 £17.04

27/05/2022 8 £532.02 £21.29 £15.97

01/06/2022 9 £614.41 £24.58 £18.44

10/06/2022 10 £478.28 £19.14 £14.35

17/06/2022 11 £546.35 £21.86 £16.40

24/06/2022 12 £295.57 £11.83 £8.87

£2,279.05 £1,709.55

Total Unpaid Contributions: £3,988.60

10 CAS-101562-B0Y7 Appendix Two

Date Pay Week Employee contributions Employer contributions

21/02/2020 – Payslips unavailable. 09/10/2020 16/10/2020 28 £20.71 Not shown

23/10/2020 29 £18.13 Not shown

30/10/2020 30 £19.85 Not shown

06/11/2020 31 £20.71 Not shown

13/11/2020 Payslip unavailable.

20/11/2020 Payslip unavailable.

27/11/2020 34 £18.13 Not shown

04/12/2010 35 £18.13 Not shown

11/12/2020 36 £18.13 Not shown

18/12/2020 37 £18.13 Not shown

25/12/2020 38 £18.13 Not shown

01/01/2021 39 £18.05 Not shown

08/01/2021 40 £18.02 Not shown

15/01/2021 41 £18.13 Not shown

22/01/2021 42 £18.13 Not shown

29/01/2021 43 £18.13 Not shown

05/02/2021 44 £18.13 Not shown

12/02/2021 Payslip unavailable.

19/02/2021 46 £18.13 Not shown

26/02/2021 47 £18.13 Not shown

05/03/2021 48 £18.13 Not shown

12/03/2021 49 £32.87 Not shown

19/03/2021 50 £32.87 Not shown

26/03/2021 51 £18.13 Not shown

11 CAS-101562-B0Y7 02/04/2021 52 £18.13 Not shown

09/04/2021 1 £18.19 Not shown

16/04/2021 2 £18.19 Not shown

23/04/2021 3 £18.13 Not shown

30/04/2021 Payslip unavailable.

07/05/2021 5 £18.13 Not shown

14/05/2021 Payslip unavailable.

21/05/2021 7 £18.13 Not shown

28/05/2021 Payslip unavailable.

04/06/2021 Payslip unavailable.

11/06/2021 10 £18.19 Not shown

18/06/2021 11 £18.13 Not shown

25/06/2021 12 £18.13 Not shown

02/07/2021 13 £18.13 Not shown

09/07/2021 14 £18.13 Not shown

16/07/2021 15 £18.13 Not shown

23/07/2021 16 £18.13 Not shown

30/07/2021 17 £18.13 Not shown

06/08/2021 18 £18.13 Not shown

13/08/2021 19 £18.13 Not shown

20/08/2021 20 £18.13 Not shown

27/08/2021 Payslip unavailable.

03/09/2021 22 £18.13 Not shown

10/09/2021 23 £18.13 Not shown

17/09/2021 24 £18.13 Not shown

24/09/2021 25 £19.57 Not shown

01/10/2021 26 £20.86 Not shown

12 CAS-101562-B0Y7 08/10/2021 27 £22.43 Not shown

15/10/2021 28 £22.43 Not shown

22/10/2021 29 £18.99 Not shown

29/10/2021 30 £21.00 Not shown

05/11/2021 31 £23.01 Not shown

12/11/2021 32 £18.13 Not shown

19/11/2021 33 £18.13 Not shown

26/11/2021 34 £23.01 Not shown

03/12/2021 35 £18.13 Not shown

10/12/2021 36 £25.01 Not shown

17/12/2021 37 £20.14 Not shown

24/12/2021 38 £18.28 Not shown

31/12/2021 Payslip unavailable.

07/01/2022 40 £18.13 Not shown

14/01/2022 41 £18.71 Not shown

21/01/2022 42 £18.99 Not shown

28/01/2022 43 £20.71 Not shown

04/02/2022 44 £18.71 Not shown

11/02/2022 45 £20.86 Not shown

18/02/2022 46 £19.14 Not shown

25/02/2022 47 £18.42 Not shown

04/03/2022 48 £19.85 Not shown

11/03/2022 49 £21.14 Not shown

18/03/2022 50 £18.99 Not shown

25/03/2022 51 £18.13 Not shown

01/04/2022 52 £21.29 Not shown

08/04/2022 1 £20.00 Not shown

13 CAS-101562-B0Y7 15/04/2022 2 £19.71 Not shown

22/04/2022 3 £19.85 Not shown

29/04/2022 4 £21.57 Not shown

06/05/2022 5 £23.72 Not shown

13/05/2022 6 £18.13 Not shown

20/05/2022 7 £22.72 Not shown

27/05/2022 8 £21.29 Not shown

03/06/2022 9 £24.58 Not shown

10/06/2022 10 £19.14 Not shown

17/06/2022 11 £21.86 Not shown

24/06/2022 12 £11.83 Not shown

14 CAS-101562-B0Y7 Appendix Three NEST Scheme Rules

Rule 7.1.1

Where in respect of a member a participating employer has elected to use the Scheme to:

1. (a) fulfil its duties under:(i) in relation to Great Britain, section 2(1) (by virtue of section), 3(2), 5(2) or 7(3) of the 2008 Act; or(ii) in relation to Northern Ireland, section 2(1) (by virtue of section), 3(2), 5(2) or 7(3) of the 2008 NI Act), or

1. (b) arrange for a worker to become a member of the Scheme within article 19(2A) of the Order,

from the date that admission to membership or the making of contribution arrangements in relation to that member takes effect, the participating employer shall pay and the Trustee shall accept such contributions as may be required in order for the Scheme to meet the quality requirement referred to in Part 1 of the 2008 Act (Part 1 of the 2008 NI Act), or the alternative requirement referred to in Part 1 of the 2008 Act (or Part 1 of the 2008 NI Act), in relation to the member, having regard to the contributions being paid by the member under rule 9.1.

Section 20 Pensions Act 2008

20 Quality requirement: UK money purchase schemes

(1) A money purchase scheme that has its main administration in the United Kingdom satisfies the quality requirement in relation to a jobholder if under the scheme—

(a) the jobholder's employer must pay contributions in respect of the jobholder;

(b) the employer's contribution, however calculated, must be equal to or more than 3% of the amount of the jobholder's qualifying earnings in the relevant pay reference period;

(c) the total amount of contributions paid by the jobholder and the employer, however calculated, must be equal to or more than 8% of the amount of the jobholder's qualifying earnings in the relevant pay reference period.

15