Aviva · CAS-66616-H4N3

CAS-66616-H4N3

Ombudsman’s Determination Applicant Mrs G

Scheme Aviva

Respondents Zoyo Capital Limited (Zoyo)

Outcome

Complaint summary Mrs G’s complaint is that following the Employment Tribunal’s (ET) December 2020 judgment her former employer has failed to pay pension contributions to her pension plan with Aviva.

Background information, including submissions from the parties

Paragraph 35 of the Determination said:

“Once the ET claim is determined, further employer pension contributions may (or may not) be due in respect of the period of Ms C’s employment from 20 February 2019 until the termination of her employment. This will depend on what the ET decides but this does not impact on the matters I am investigating presently. If, the ET decides that Ms C is entitled to higher earnings during the 1 CAS-66616-H4N3 period she was put on SSP 1, and the appropriate pension payment is not made, it may be open to Ms C to make a further complaint to my Office regarding any failure to pay any additional contributions which are found to be due under Section 20.2 of her contract.”

The payment was not made. Ms G then complained to the Pensions Ombudsman’s Office.

While in Zoyo’s employment Mrs G’s daily gross pay was £884.62. Prior to the ET judgment, in respect of the Period, Mrs G received gross SSP of £1,946.76.

Adjudicator’s Opinion

• Following the ET judgment, Zoyo was liable to pay employer pension contributions to Mrs G’s Aviva pension plan of £16,430.46, calculated as follows:

Mrs G’s gross pay for the Period = £96,423.58 2

Less SPP = (£ 1,946.76)

Total gross pay = £94,476.82

Total pension contributions payable = £16,430,46 3

• To put matters right Zoyo should:-

o Calculate simple interest at the applicable Bank of England base rate from time to time from the due date of contributions payable for the Period up to the date of payment to Mrs G’s pension plan with Aviva (the Interest Sum) and notify Mrs G of the calculated sum.

1 Statutory sick pay. 2 109 working days x £884.62. 3 £94,476.92 x 0.17391. 2 CAS-66616-H4N3 o Pay £16,430.46 plus the Interest Sum to Mrs G’s pension plan with Aviva.

o If the payment of the above amounts resulted in an additional tax liability on Mrs G, then Zoyo should pay Mrs G the equivalent amount.

Zoyo and Mrs G agreed the calculation of £16,430.46, but to date Zoyo has not provided the interest calculation or confirmed when it will pay the sum to Mrs G’s pension plan with Aviva.

Mrs G has requested that the matter be now determined. Mrs G has also requested a payment for distress and inconvenience caused.

I agree with the Adjudicator’s Opinion, except, I have substituted the payment of simple interest to a calculation of any investment return lost as a result of the late payment of the contributions in order to put Mrs G back into the position she would have been in had the contributions been paid on time. I also note Mrs G’s requests.

Ombudsman’s decision

I have considered whether an award should be made for distress and inconvenience.

I uphold Mrs G’s complaint.

Directions

• pay £16,430.46 to Mrs G’s pension plan with Aviva;

• pay Mrs G £500 for significant distress and inconvenience caused.

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Anthony Arter

Pensions Ombudsman 28 May 2021

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