Nest · CAS-94333-Q0F5

CAS-94333-Q0F5

Ombudsman’s Determination Applicant Mr T

Scheme NEST (the Scheme)

Respondents M.A.G Engineering Company Limited (the Employer)

Outcome

Complaint summary

Background information, including submissions from the parties

1 MAG Engineering Company Limited CAS-94333-Q0F5

Mr T has provided copies of the payslips he has received for the period August 2023 to July 2024. These deductions amounted to £827.20. A breakdown of the deductions has been included in the Appendix. The payslips did not show the employer contributions which have also not been paid into the Scheme.

On 28 August 2024, the Scheme administrator confirmed that contributions were paid into the Scheme in line with the statutory minimum automatic enrolment contribution rate of 3% and 5% for employer and employee contributions.

Adjudicator’s Opinion

• 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. She said that the Employer had initially responded but then no further response was received to TPO’s communications, she had to base her Opinion solely on the information provided by Mr T. 2 CAS-94333-Q0F5 • The Adjudicator said that she had no reason to doubt the information provided by Mr T. So, in the Adjudicator’s Opinion, on the balance of probabilities, contributions had been deducted from Mr T’s salary, but had not been paid into the Scheme. In addition, the Employer had not fully paid the employer contributions that were due over the same period. As a result of its maladministration, Mr T was not in the financial position he ought to be in.

• The Adjudicator said that Mr T’s payslips did not show the employer contributions for the period August 2023 to July 2024 even though he was still enrolled in the Scheme. The Scheme administrator confirmed that the contributions should have been calculated by reference to the statutory minimum automatic enrolment contribution rate of 3% and 5% for employer and employee contributions. It was the Adjudicator’s view, on the balance of probabilities, that £647.86 in employer contributions had not been paid to the Scheme. In total £1,475.06 had not been remitted to the Scheme.

• In the Adjudicator’s view, Mr T 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

Directions

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

3 CAS-94333-Q0F5 (ii) £1,475.06 Mr T’s Mr T

;

(iii) establish with the Scheme administrator whether the late payment of contributions has meant that fewer units were purchased in Mr T’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.

Anthony Arter CBE

Deputy Pensions Ombudsman

10 October 2024

4 CAS-94333-Q0F5 Appendix

Date Gross salary Employee Employer contributions contributions

10 August 2023 £2592 £80 Not stated

10 September £2160 £64 (£43.20 Not stated 2023 – only one outstanding) week paid

10 October 2023 £1944 £64 Not stated

10 November £2700 £80 Not stated 2023

10 December £2160 £64 Not stated 2023

10 January 2024 £2700 £80 Not stated

10 February 2024 £2160 £64 Not stated

10 March 2024 £2160 £64 Not stated

10 April 2024 £2700 £80 Not stated

10 May 2024 £2160 £64 Not stated

10 June 2024 £2330 £64 Not stated

10 July 2024 £2576 £80 Not stated

Total amount: £827.20 £827.20

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