Nest · CAS-115063-P5V4

CAS-115063-P5V4

Ombudsman’s Determination Applicant Mr N

Scheme NEST (the Scheme)

Respondents Wrought Iron & Brass Bed Co. Limited (the Employer)

Complaint Summary

Summary of the Ombudsman’s Determination and reasons The complaint should be partly upheld against the Employer because:-

Detailed Determination Material facts

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“By law 2021 is the year when the company is required to offer every permanent employee entry into a Company Pension Scheme.

…

3) Individual cost will be 5% (4% after tax relief i.e.: £4) of every £100 of gross pay.

4) The company will add £3 of every £100 gross pay.

5) Total investment into your pension will be £8 for every £100 gross pay.

6) So for a £4 contribution from yourself double that amount (£8) will be invested into your pension.

7) The money will be invested so that on retirement there will be a pension.”

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Conclusions

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Directions

To put matters right, the Employer shall, within 28 days of this decision:-

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

(ii) pay £2,399.52 into Mr N’s Scheme account. This figure represents the amount that according to the figures provided by Mr N, have been deducted from his pay and not paid into the Scheme account. It also includes the employer contributions for the relevant period which should have also been paid but have not been to date;

(iii) establish with the Scheme whether the late payment of contributions has meant that fewer units were purchased in Mr N’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.

Within 14 days of receiving confirmation from the Scheme administrator of any shortfall in Mr N’s units, pay the cost of purchasing any additional units required to make up the shortfall.

Camilla Barry

Deputy Pensions Ombudsman 7 January 2026

5 CAS-115063-P5V4 Appendix One Tax Year Gross Source Employee Employer Employee Employer salary (£) – Gross contributions contributions contributions contributions Salary (£) (from (£) (from (£) – Paid to (£) – Paid to payslip) payslip) Scheme Scheme

2021/2022 16,686.92 HMRC * * 458.38 343.79

2022/2023 26,514.82 Payslip 1325.74 * 465.40 349.09

2023/2024 18,340.00 Payslip 917.05 * 0.03 0.03

* Payslips unavailable/Employer contributions not stated on the payslip

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NEST – Contribution Schedule

Employee Contributions Contribution Contribution Amount paid HMRC Tax Tax Relief Status Due Date Paid Date (£) Relief (£)

10/03/2023 09/05/2023 0.01 0.00 Claimed and received

10/02/2023 09/05/2023 0.01 0.00 Claimed and received

10/01/2023 09/05/2023 0.01 0.00 Claimed and received

10/12/2022 19/01/2023 0.01 0.00 Claimed and received

10/10/2022 19/01/2023 0.04 0.01 Claimed and received

10/09/2022 10/10/2022 80.53 20.13 Claimed and received

10/08/2022 10/10/2022 384.67 96.17 Claimed and received

10/07/2022 09/09/2022 0.04 0.01 Claimed and received

10/06/2022 09/09/2022 0.04 0.01 Claimed and received

10/05/2022 09/09/2022 0.04 0.01 Claimed and received

10/04/2022 28/04/2022 0.04 0.01 Claimed and received

10/02/2022 28/04/2022 0.04 0.01 Claimed and received

10/03/2022 01/03/2022 458.34 114.59 Claimed and received

7 CAS-115063-P5V4 Employer contributions Contribution Due Date Contribution Paid Date Amount paid (£)

10/03/2023 09/05/2023 0.01

10/02/2023 09/05/2023 0.01

10/01/2023 09/05/2023 0.01

10/12/2022 19/01/2023 0.01

10/11/2022 19/01/2023 0.01

10/10/2022 19/01/2023 0.03

10/09/2022 10/10/2022 60.39

10/08/2022 10/10/2022 288.50

10/07/2022 09/09/2022 0.03

10/06/2022 09/09/2022 0.03

10/05/2022 09/09/2022 0.03

10/04/2022 28/04/2022 0.03

10/02/2022 28/04/2022 0.03

10/03/2022 01/03/2022 343.76

8 CAS-115063-P5V4 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:

(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

(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.

9 CAS-115063-P5V4 Appendix Four 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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