Nest · CAS-62321-R7P2

CAS-62321-R7P2

Ombudsman’s Determination Applicant Mrs S

Scheme NEST (the Scheme)

Respondents Solutions4Health Limited (the Employer)

Outcome

Complaint summary

Background information, including submissions from the parties

On 13 July 2015, the Employer wrote to Mrs S to advise that it would be enrolling her into a Scottish Widow’s pension scheme. The Employer began deducting pension contributions from Mrs S’ pay on 31 July 2015, but none of these contributions were paid over to Scottish Widows between July 2015 and April 2017.

On 9 May 2017, the Employer enrolled Mrs S in the Scheme and the first contribution was received by the Scheme on 16 May 2017.

The majority of the subsequent contributions deducted between June 2017 and December 2018 were paid into the Scheme late.

1 CAS-62321-R7P2 Mrs S has said that she became aware of the unpaid contributions around December 2018 and raised this with the Employer.

Mrs S was made redundant on 31 March 2019 and has said that she was promised by the Employer that the unpaid contributions would be settled before this date. On 28 June 2019, the Employer made a one-off payment of £450.28 to the Scheme in respect of the unpaid contributions.

Mrs S remained unhappy as she had suffered investment loss on the contributions that had been unpaid for two years and sought further redress for this and the distress and inconvenience suffered.

The Employer stated that it did not feel any additional financial redress was appropriate and it had always supported Mrs S throughout her time with the company.

The Appendix provides a summary of the payments due from July 2015 to March 2019 and the shortfall calculated by the Employer. The Appendix also provides a summary provided by NEST of the monthly contributions that were due from March 2017 to March 2019 and the date the payments were received.

Adjudicator’s Opinion

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The Employer did not respond to the Adjudicator’s Opinion and the complaint was passed to me to consider. I agree with the Adjudicator’s Opinion.

Directions

(i) request that Scottish Widows calculate any loss of investment gains from the due date of each contribution to the date of calculation, on the assumption the contributions were invested in Mrs S’ chosen investment fund(s) for the period July 2015 to April 2017;

(ii) request that NEST calculate any loss of investment gains from the due date of each contribution to the date of calculation, on the assumption the contributions were invested in Mrs S' chosen investment fund(s) for the period June 2017 to December 2018;

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(iii) pay the calculated amounts into the Scheme as lump sums to be invested into Mrs S' NEST account, within 21 days of receiving calculations from NEST and Scottish Widows;

(iv) pay any reasonable administration fee charged by NEST and Scottish Widows for making the necessary calculations;

(v) pay £1,000 direct to Mrs S for the serious distress and inconvenience she has suffered.

Dominic Harris

Pensions Ombudsman 15 February 2023

4 CAS-62321-R7P2 Appendix NEST Summary

Employer Summary

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