Nest · CAS-116193-C2R5

CAS-116193-C2R5

Ombudsman’s Determination Applicant Mr Z

Scheme NEST (the Scheme)

Respondent Adams Leisure Ltd (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 salient points.

On 15 July 2021, Mr Z began his employment with the Employer.

Mr Z was enrolled into the Scheme in November 2021.

Mr Z’s contract of employment states in relation to pensions:

“10. PENSION

1 CAS-116193-C2R5 10.1 The Employer operates a pension scheme for all qualifying employees whom are entitled to enrol or opt out if You so wish.”

Mr Z has also provided a copy of an employee handbook that he states he was given together with his contract of employment. The employee handbook states, amongst other things:

“Pay, etc

………

E) PENSION SCHEME

We operate a contributory pension scheme which you will be auto-enrolled into (subject to the conditions of the scheme). The scheme enables you to save for your retirement using your own money, together with tax relief and contributions from the Company.”

Mr Z states that in March 2022, June 2023 and November 2023, the Employer did not deduct employee pension contributions from his salary and it did not pay the employer and employee pension contributions due for these months into the Scheme.

On 16 January 2024, Mr Z brought his complaint to The Pensions Ombudsman (TPO).

Mr Z provided copies of the payslips issued to him in respect of his service with the Employer for the period from October 2021 to February 2024. The payslips show the pension contributions deducted from Mr Z’s pay during this period and the corresponding employer contributions. The information in the payslips showing the employee contributions deducted from Mr Z’s pay and the corresponding employer contributions is provided in Appendix One.

The payslips that Mr Z has provided for March 2022, June 2023 and November 2023 show employer contributions of £0.00. The payslips do not show that any employee pension contributions were deducted from his pay in these months either. Mr Z has also provided a copy of the record of contributions made to his Scheme account, obtained from the Scheme administrator. The record from the Scheme administrator does not show that any pension contributions were paid by the Employer in respect of Mr Z for these months.

The payslips provided by Mr Z, except the March 2022, June 2023 and November 2023 payslips, show employee contributions of £146.76 each month and employer contributions of £110.07 each month for the period from October 2021 to February 2024.

On 4 June 2024, TPO asked the Employer for its formal response to Mr Z’s complaint. This request was repeated on 18 June 2024. None of these requests received a response.

2 CAS-116193-C2R5 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 Z.

• The Adjudicator said there was no dispute that Mr Z was enrolled into the Scheme and under the rules of the Scheme (the Scheme Rules) the Employer was obliged to pay to the Scheme in the relevant pay reference period, at least 3% of Mr Z’s qualifying earnings, and the employer and employee contributions must amount to at least 8% of Mr Z’s qualifying earnings.

• Having reviewed Mr Z’s payslips for March 2022, June 2023 and November 2023 along with the record of contributions from Scheme administrator, it was the Adjudicator’s opinion that Mr Z had met the qualifying threshold for pension contributions, however no contributions had been deducted from Mr Z’s salary for these months.

• The Adjudicator said that he had no reason to doubt the information provided by Mr Z. So, in the Adjudicator’s Opinion, on the balance of probabilities, pension contributions should have been paid to the Scheme in line with the Scheme Rules and calculated to the statutory minimum automatic contribution rate of 3% and 5%. It was the Adjudicator’s view that, based on the evidence Mr Z had provided, a total of £247.32 in employer contributions and £412.22 in employee contributions had not been paid into the Scheme.

• As a result of its maladministration, Mr Z was not in the financial position he ought to be in. In the Adjudicator’s view, Mr Z had suffered significant distress and inconvenience due to the Employer’s maladministration. The Adjudicator was of the opinion that an award of £500 for non-financial injustice was appropriate in the circumstances.

3 CAS-116193-C2R5 Ombudsman’s decision

Directions

4 CAS-116193-C2R5

Camilla Barry

Deputy Pensions Ombudsman

26 August 2025

5 CAS-116193-C2R5 Appendix One Payment date Employee Employer contributions Monthly Salary contributions (Gross pay)

10/10/2021 £146.76 £110.07 £5,833.33

10/11/2021 £146.76 £110.07 £5,833.33

10/12/2021 £146.76 £110.07 £5,833.33

10/01/2022 £146.76 £110.07 £5,833.33

10/02/2022 £146.76 £110.07 £5,833.34

10/03/2022 £146.76 £110.07 £5,833.33

31/03/2022** £5,833.33 (pay period 01/03/2022 – 30/03/2022) 10/05/2022 £146.76 £110.07 £5,833.33

10/06/2022 £146.76 £110.07 £5,833.33

10/07/2022 £146.76 £110.07 £5,833.33

10/08/2022 £146.76 £110.07 £5,833.33

10/09/2022 £146.76 £110.07 £5,833.33

10/10/2022 £146.76 £110.07 £5,833.33

10/11/2022 £146.76 £110.07 £5,833.33

10/12/2022 £146.76 £110.07 £5,833.33

10/01/2023 £146.76 £110.07 £5,833.33

10/02/2023 £146.76 £110.07 £5,833.33

10/03/2023 £146.76 £110.07 £5,833.33

10/04/2023 £146.76 £110.07 £5,833.33

10/05/2023 £146.76 £110.07 £5,833.33

10/06/2023 £146.76 £110.07 £5,833.33

10/07/2023** £5,833.33 (pay period 01/06/2023 – 30/06/2023) 10/08/2023 £146.76 £110.07 £5,833.33

6 CAS-116193-C2R5 10/09/2023 £146.76 £110.07 £5,833.33

10/10/2023 £146.76 £110.07 £5,833.33

10/11/2023 £146.76 £110.07 £5,833.33

11/12/2023** £1,426.92 (pay period 01/11/2023 – 30/11/2023) 10/01/2024 £0* £0* £459.58

10/02/2024 £0* £0* £109.40

Total unpaid £654.69 £392.79 contributions

£1,047.48

*Did not meet the Threshold

**Met the Threshold but no contributions deducted from payslip.

7 CAS-116193-C2R5 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—

(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.

8