Nest · CAS-108414-B8G3

CAS-108414-B8G3

Ombudsman’s Determination Applicant Mr X

Scheme NEST (the Scheme)

Respondents Blue Spot Fire & Security Limited (the Employer)

Outcome

Complaint summary

Background information, including submissions from the parties The sequence of events is not in dispute, so I have only set out the main points.

Mr X said that the Employer has not paid pension contributions, totalling £4,955.31, into the Scheme for the period between 31 July 2020 and 30 September 2022. The total figure consists of £3,103.30 for employee pension contributions and £1,852.01 for employer pension contributions.

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Mr X provided copies of the following information to TPO covering his pay for the period 31 July 2020 to 30 September 2022: -

• Copy payslips detailing the employee contributions deducted from his pay, and the corresponding employer contributions, except months December 2020 to March 2021, August 2021, and September 2021 as these payslips were not available, also shown in Appendix One.

• Screenshots confirming Mr X’s gross monthly income figures that the Employer submitted to HMRC for this period, as shown in Appendix Two.

The Scheme Administrator (the Administrator) provided information to TPO which confirmed that between 31 July 2020 to 30 September 2022 there were contributions paid into the Scheme on only two occasions, being 23 December 2021 and 24 February 2022.

Under the Rules of the Scheme (the Scheme Rules) the Employer was obliged to pay to the Scheme, at least 8% of Mr X’s qualifying earnings in the relevant pay reference period. This is equivalent to 5% employee contributions and 3% employer contributions. This is shown in Appendix Three. 2 CAS-108414-B8G3 Adjudicator’s Opinion Mr X’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 Scheme.

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 engaged with TPO’s communications for it to provide a detailed response, he had to base his Opinion solely on the information provided by Mr X and the Administrator.

The Adjudicator set out Appendix One in summary of the period 31 July 2020 to 30 September 2022 to show the following: -

• Mr X’s gross monthly taxable income shown on his payslips.

• Mr X’s monthly pension contributions and corresponding employer contributions shown on his payslips.

• Six instances where copy payslips were not available.

• Two occasions where the Employer had made payments into the Scheme.

The Adjudicator set out Appendix Two in summary of the gross monthly taxable income figures that the Employer submitted to HMRC for Mr X’s pay in the period 31 July 2020 to 30 September 2022.

In relation to Appendix One, the Adjudicator set out his findings as follows: -

• From the available payslips, employee contributions had been deducted from Mr X’s pay, and the corresponding employer contributions, which had not been paid into the Scheme for the period 31 July 2020 to 30 September 2022.

• It was evident from the Scheme information provided, that between 31 July 2020 and 30 September 2022, there were only two occasions where the Employer paid contributions into Mr X’s Scheme account.

The Adjudicator added in his findings, that when comparing Mr X’s payslips in Appendix One against his gross monthly taxable income in Appendix Two, it was evident that: -

• While copy payslips were not available for Mr X’s pay for the four months between December 2020 and March 2021, in their absence, it was noted that the HMRC screenshot confirmed Mr X’s gross taxable pay for these months matched with the amounts shown on his payslips for the preceding five months and following two months. Therefore, in the Adjudicator’s opinion, on a balance of probabilities, Mr X’s monthly employee contributions between December 2020 and March 2021 were also £107.63, and the employer contributions £64.40.

3 CAS-108414-B8G3 • While copy payslips were not available for Mr X’s pay for August 2021, and September 2021, in their absence, it was noted that the HMRC screenshot confirmed Mr X’s gross taxable pay for these months matched with the amounts shown on his payslips for the preceding two months and following month. Therefore, in the Adjudicator’s opinion, on a balance of probabilities, Mr X’s monthly employee contributions for August 2021, and September 2021 were also £124 and the employer contributions £74.40.

• The Adjudicator was of the view that based on the information provided by Mr X and the Administrator, a total of £4,955.31 had not been remitted to the Scheme. This figure consisted of £3,103.30 in employee contributions and £1,852.01 in employer contributions.

• The Adjudicator said that he had no reason to doubt the information provided by Mr X. So, in the Adjudicator’s Opinion, on the balance of probabilities, contributions had been deducted from Mr X’s salary but had not been paid into the Scheme. In addition, the Employer had not paid the employer contributions that were due over the same period. As a result of its clear maladministration, Mr X was not in the financial position he ought to be in.

• In the Adjudicator’s view, Mr X had suffered distress and inconvenience because of this maladministration from the Employer. No attempt had been made by the Employer to provide a detailed response to Mr X’s complaint since it was first contacted by TPO, despite direct requests.

• It was clear Mr X suffered serious distress and inconvenience at the thought of his pension contributions being lost. Further, the Adjudicator added that the Employer had made no attempt to put the matter right, which would have further exacerbated the issue for Mr X.

• 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 Mr X £1,000 for the serious distress and inconvenience he has experienced;

(ii) pay £4,955.31 into Mr X’ Scheme account. This figure represents, on the available evidence, the total employer and employee contributions not paid into the Scheme;

(iii) establish with the Administrator whether the late payment of contributions has meant that fewer units were purchased in Mr X’ Scheme account than he would have otherwise secured, had the contributions been paid on time; and

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

Camilla Barry

Deputy Pensions Ombudsman 24 March 2026

5 CAS-108414-B8G3 Appendix One

Payslip date Gross taxable Employee Employer Date paid to income contribution contribution Scheme

31/07/20 £2559.34 £107.33 £64.40 xx

31/08/20 £2559.34 £107.33 £64.40 xx

30/09/20 £2559.34 £107.33 £64.40 xx

31/10/20 £2559.34 £107.33 £64.40 xx

30/11/20 £2559.34 £107.33 £64.40 xx

*31/12/20 xx £107.33 £64.40 xx

*31/01/21 xx £107.33 £64.40 xx

*28/02/21 xx £107.33 £64.40 xx

*31/03/21 xx £107.33 £64.40 xx

30/04/21 £2559.34 £107.33 £64.40 xx

31/05/21 £2559.34 £107.33 £64.40 xx

30/06/21 £2876.00 £124 £74.40 xx

31/07/21 £2876.00 £124 £74.40 xx

*31/08/21 xx £124 £74.40 xx

*30/09/21 xx £124 £74.40 xx

31/10/21 £2876.00 £124 £74.40 xx

†01/12/21 £3002.45 £130.66 £78.39 23/12/21

31/12/21 £3610.90 £162.68 £97.61 xx

†31/01/22 £3734.24 £169.17 £101.50 24/02/22

28/02/22 £3092.90 £135.42 £81.25 xx

31/03/22 £3051.79 £133.25 £79.95 xx

30/04/22 £2788.68 £119.40 £71.64 xx

31/05/22 £3347.79 £148.83 £89.30 xx

30/06/22 £2920.23 £126.33 £75.80 xx

6 CAS-108414-B8G3 31/07/22 £3134.01 £137.58 £82.55 xx

31/08/22 £3478.87 £155.73 £93.44 xx

30/09/22 £4316.53 £183.45 £110.07 xx

†Total £3,103.30 £1,852.01

*copy payslip not available, contribution figures calculated on balance of probabilities

†Combined employee and employer total = £4,955.31 (less November 2021 and January 2022)

7 CAS-108414-B8G3 Appendix Two Date HMRC monthly gross pay amount

31/07/20 £2559.34

31/08/20 £2559.34

30/09/20 £2559.34

31/10/20 £2559.34

30/11/20 £2559.34

*31/12/20 £2559.34

*31/01/21 £2559.34

*28/02/21 £2559.34

*31/03/21 £2559.34

30/04/21 £2559.34

31/05/21 £2559.34

30/06/21 £2559.34

31/07/21 £2876.00

*31/08/21 £2876.00

*30/09/21 £2876.00

31/10/21 £2876.00

30/11/21 £2876.00

31/12/21 £3610.90

31/01/22 £3734.24

28/02/22 £2657.12

31/03/22 £3051.79

30/04/22 £2788.68

31/05/22 £3183.34

30/06/22 £2920.23

8 CAS-108414-B8G3 31/07/22 £2607.79

31/08/22 £3051.79

30/09/22 £4316.53

*Gross monthly taxable income figures compared to payslips on file.

9 CAS-108414-B8G3 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:

1. (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

1. (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—

(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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