Nest · CAS-96234-M5S1

CAS-96234-M5S1

Ombudsman’s Determination Applicant Mr I

Scheme NEST (the Scheme)

Respondents Alderforce North Limited (the Employer)

Outcome

Complaint summary

Background information, including submissions from the parties

In July 2020, Mr I began his employment with the Employer.

Between August 2020 and December 2021, the Employer failed to pay pension contributions into the Scheme on eight occasions (see Appendix).

In March 2021, Mr I became aware that his contributions were not being paid into his NEST account.

On 6 September 2022, Mr I formally complained to the Employer and explained that he had contacted the Pensions Ombudsman (TPO) for advice on his unpaid pension contributions.

1 Alderforce North Limited CAS-96234-M5S1 On 3 November 2022, Mr I brought his complaint to The Pensions Ombudsman (TPO).

Mr I provided copies of payslips for the period from August 2020 to December 2021, which detailed the employee contributions deducted from his pay by the Employer, as well as the employer contributions. These contributions amounted to £594.38. A breakdown of the deductions has been included in Appendix One.

On 3 September 2024, TPO contacted the Employer with details of Mr I’s complaint and asked for its formal response with a deadline of 17 September 2024.

On 17 September 2024, TPO had not received a response from the Employer and as a result the case progressed to Opinion.

Adjudicator’s Opinion

The Employer responded to the Opinion and raised the following points:-

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The Employer disagreed with the level of distress and inconvenience payment suggested in the Adjudicator’s opinion, so the complaint was passed to me to consider. I agree with the Adjudicator's Opinion.

Ombudsman’s decision

1 For example, see Westminster City Council v Haywood [1996] 2 All ER 467 (obiter), as confirmed in City

and County of Swansea v Johnson [1999] 17 PBLR, and in also later cases. 3 CAS-96234-M5S1

Therefore, I uphold Mr I’s complaint.

Directions To put matters right, the Employer shall, within 28 days of the date of this Determination:

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

(ii) pay £594.38 into Mr I’s Scheme account. This figure represents the employee contributions of £464.45 and the employer contributions of £129.93.

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

4 CAS-96234-M5S1 Within 14 days of receiving confirmation from the Scheme administrator of any shortfall in Mr I’s units, pay the cost of purchasing any additional units required to make up the shortfall.

Dominic Harris

Pensions Ombudsman 09 October 2025

5 CAS-96234-M5S1 Appendix One Date Employee contributions Employer contributions

28 August 2020 (Period 11) £20.69 £15.52

25 September 2020 (Period 13) £106.53 £14.19

09 October 2020 (Period 14) £94.07 £13.16

24 September 2021 (Period 13) £149.55 £16.86

08 October 2021 (Period 14) £19.39 £14.54

05 November 2021 (Period 16) £27.65 £20.74

19 November 2021 (Period 17) £25.13 £18.84

03 December 2021 (Period 18) £21.44 £16.08

Subtotal: £464.45 £129.93

Total unpaid contributions: £594.38

Appendix Two 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.

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— 6 CAS-96234-M5S1 (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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