Smart Pension Master Trust · CAS-94367-H8S2

CAS-94367-H8S2

Ombudsman’s Determination Applicant Ms H

Scheme The Smart Pension Master Trust (the Trust)

Respondent Elevate Ward Design Ltd (the Employer)

Outcome

Complaint summary

Background information, including submissions from the parties

On 5 October 2020, Ms H began working for the Employer.

On 29 January 2021, pensions contributions started being deducted from Ms H’s pay.

Between January 2021 and November 2021, the Employer failed to pay pension contributions into the Trust.

On 12 August 2021, Ms H was enrolled into the Trust. She accessed the online portal and discovered that no pension contributions had been paid into the Trust.

On 20 September 2021, Ms H emailed the Employer about her unpaid pension contributions as she was unable to see them in her Trust account. She said that she

1 CAS-94367-H8S2 had contributions deducted from her pay since January 2021 but had only been enrolled into the Trust on 12 August 2021.

On 12 October 2021, Ms H requested an update from the Employer. On the same day, the Employer emailed Ms H and said it had every intention of paying the contributions as soon as it was affordable for the business.

On 30 November 2021, Ms H ceased employment with the Employer. She said upon leaving her employment, it was verbally agreed with the Employer that the outstanding contributions would be paid back at the end of the 2021/2022 financial year.

On 29 February 2022, Ms H complained to The Pensions Ombudsman (TPO).

Ms H provided copies of the payslips that she held for the period between January 2021 and November 2021, which detailed the pension contributions deducted from her pay and the corresponding employer contributions. These contributions amounted to £1,955.00. The payslip that Ms H provided from January 2021 did not show employer contributions.

Ms H also provided a copy of the record of contributions from the Trust administrator which shows that no contributions were paid into the Trust by the Employer.

The payslips provided by Ms H, except for January 2021, show employer contributions of £69.00 for each month for the period between February 2021 and November 2021.

Adjudicator’s Opinion Ms H’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 all the contributions that were due to the Trust. 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. He said that, as the Employer had not responded to any of TPO’s communications, he had to base his Opinion solely on the information provided by Ms H.

• The Adjudicator said that he had no reason to doubt the information provided by Ms H. So, in the Adjudicator’s Opinion, on the balance of probabilities, contributions had been deducted from Ms H’s salary but had not been paid into the

2 CAS-94367-H8S2 Trust. In addition, the Employer had not paid any of the employer contributions that were due over the same period.

• The Adjudicator said that although Ms H’s payslip for January 2021 did not show any employer contributions, her salary met the pension qualifying threshold. Therefore, pension contributions should have been paid into the Trust and calculated by reference to the statutory minimum automatic enrolment contribution rate of 5% in employee and 3% in employer contributions. In his view on a balance of probabilities, £69.00 in employer contributions were also due to the Trust for January 2021. As a result of the Employer’s maladministration, Ms H was not in the financial position she ought to be in.

• In the Adjudicator’s view, Ms H 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

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Directions

(i) pay Ms H £1,000 for the serious distress and inconvenience she has experienced;

(ii) £2,024.00 Ms H’s Ms H

;

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

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

Camilla Barry

Deputy Pensions Ombudsman

26 August 2025

4 CAS-94367-H8S2 Appendix One

Date Employee contributions Employer contributions Gross Salary

29/01/2021 £115.00 £2,300

28/02/2021 £115.00 £69.00 £2,300

31/03/2021 £115.00 £69.00 £2,300

30/04/2021 £115.00 £69.00 £2,300

31/05/2021 £115.00 £69.00 £2,300

30/06/2021 £115.00 £69.00 £2,300

31/07/2021 £115.00 £69.00 £2,300

31/08/2021 £115.00 £69.00 £2,300

30/09/2021 £115.00 £69.00 £2,300

31/10/2021 £115.00 £69.00 £2,300

30/11/2021 £115.00 £69.00 £2,300

£1,265.00 £690.00

Total Unpaid £1,955.00 Contributions

5 CAS-94367-H8S2 Appendix Two Smart Pension Master Trust Rules

11. MEMBER AND EMPLOYER CONTRIBUTIONS

11.1 Members' contributions

11.1.1 An Employed Active Member must contribute to the Scheme at such rate (if any) as the Employer shall decide from time to time and notify to the Active Member in writing. Such rate shall not take effect until it has been confirmed to the Trustee in a written form acceptable to the Trustee (such confirmation to be provided in reasonable time in advance of any change) and is subject to any terms, conditions and restrictions as the Trustee may determine from time to time. Unless the Trustee agrees, Employed Active Member contributions payable under this Rule 11.1 shall satisfy the Quality Requirement (taking account of contributions payable under Rule 11.2).

11.1.2 An Independent Active Member must contribute to the Scheme at such rate as the Founder permits and is agreed with the Trustee.

11.1.3 An Active Member may make further contributions above any minimum level required.

11.2 Employers' contributions

11.2.1 In relation to an Employed Active Member, each Employer must contribute to the Scheme at such rate as the Employer shall decide from time to time and notify to the Employed Active Member in writing. Such rate shall not take effect until it has been confirmed to the Trustee in a written form acceptable to the Trustee (such confirmation to be provided in reasonable time in advance of any change) and is subject to any terms, conditions and restrictions as the Trustee may determine from time to time.

11.2.2 Unless the Trustee agrees, Employer contributions payable under this Rule 11.2 shall be required, as a minimum, to satisfy the minimum contributions required of employers under the Quality Requirement.

6 CAS-94367-H8S2 Appendix Three 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.

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