Smart Pension Master Trust · CAS-76801-H9Y9

CAS-76801-H9Y9

Ombudsman’s Determination Applicant Mr L

Scheme The Smart Pension Master Trust (the Trust)

Respondent Integral Law Ltd (the Employer)

Outcome

Complaint summary

Background information, including submissions from the parties In April 2019, Mr L began his employment with the Employer. In May 2019, Mr L was enrolled into the Trust and salary deductions began.

In October 2020, Mr L left his employment with the Employer.

On 3 July 2020, Mr L sought to consolidate his pension funds into his current workplace pension scheme. Mr L logged into his account with the Trust and found there was a zero balance with £1,965.04 processing. Mr L queried this with the Trust administrator.

On 8 July 2021, Mr L called the Trust administrator and was told the Employer had failed to make any payments into the Trust and was being chased.

On 15 July 2021, Mr L received an email from the Trust administrator confirming the Employer had not paid into the Trust and it had reported the Employer to the Pensions Regulator (TPR).

1 CAS-76801-H9Y9 Later that day, Mr L spoke to TPR and was advised to raise a formal complaint with The Pensions Ombudsman (TPO). Mr L contacted TPO and was informed that he should first make a formal complaint with the Employer which Mr L did that same day.

Mr L chased the Employer for a response to his complaint by email on 23 July 2021 and 16 August 2021. Mr L did not receive any response.

On 17 August 2021, Mr L submitted an application to TPO.

Mr L provided copies of the payslips that he held for the period from May 2019 to October 2020, which detailed the pension contributions deducted from his pay and the corresponding employer contributions. These deductions amounted to £2,388.38. A breakdown of the deductions has been included in the Appendix.

Adjudicator’s Opinion

• 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 Mr L.

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

• In the Adjudicator’s view, Mr L had suffered significant distress and inconvenience due to the Employer’s maladministration. The Adjudicator was of the view that an award of £500 for non-financial injustice was appropriate in the circumstances.

2 CAS-76801-H9Y9 Ombudsman’s decision

Directions

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

(ii) produce a schedule (the Schedule) showing the employee contributions deducted from Mr L’s pay in respect of the period of his employment. The Schedule shall also include the corresponding employer contributions that were due to the Trust; and

(iii) forward the Schedule to Mr L.

(i) pay the missing contributions to the Trust;

(ii) establish with Smart Pension, whether the late payment of contributions has meant that fewer units were purchased in Mr L‘s Trust account than he would have otherwise secured, had the contributions been paid on time; and

(iii) pay any reasonable administration fee should Smart Pension charge a fee for carrying out the above calculation.

3 CAS-76801-H9Y9 Within 14 days of receiving confirmation from Smart Pension of any shortfall in Mr L’s units, pay the cost of purchasing any additional units required to make up the shortfall.

Anthony Arter

Pensions Ombudsman 15 September 2022

4 CAS-76801-H9Y9 Appendix Date Employee contributions Employer contributions

30/04/2019 Not yet enrolled Not yet enrolled

31/05/2019 £93.15 £55.89

30/06/2019 £93.15 £55.89

31/07/2019 £93.15 £55.89

31/08/2019 £93.15 £55.89

30/09/2019 £93.15 £55.89

31/10/2019 £93.15 £55.89

30/11/2019 £93.15 £55.89

31/12/2019 £93.15 £55.89

31/01/2020 £93.15 £55.89

29/02/2020 £93.15 £55.89

31/03/2020 £78.24 £46.94

30/04/2020 £69.00 £41.40

31/05/2020 £69.00 £41.40

30/06/2020 £69.00 £41.40

31/07/2020 £69.00 £41.40

31/08/2020 £69.00 £41.40

30/09/2020 £69.00 £41.40

31/10/2020 £69.00 £41.40

Total unpaid employee £1,492.74 contributions

Total unpaid employer £895.64 contributions

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