Nest Pension Scheme · CAS-130996-Q6W2

CAS-130996-Q6W2

Ombudsman’s Determination Applicant Mrs S

Scheme NEST Pension Scheme (the Scheme)

Respondents Solange Bakery Ltd and Artisan Traditions Ltd (the Employers)

Outcome

Complaint summary

The available evidence shows that the missing contributions amounted to £216.71. This consists of £123.83 in employee contributions and £92.88 in employer contributions.

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

During Mrs S’ employment she was paid and employed by two companies successively, each having the same sole director Mr Tavares, and operating a business in manufacturing bread and pastries:

• Solange Bakery Ltd

• Artisan Traditions Ltd

On 29 September 2023, Mrs S received a payslip showing that her first employee pension contribution was deducted from her pay by Solange Bakery Ltd.

1 CAS-130996-Q6W2 On 26 October 2023, Mrs S was informed by the Scheme administrator that Solange Bakery Ltd had enrolled her into the Scheme with effect from 27 October 2023.

On 25 January 2024, Mrs S contacted Mr Tavares to complain that the pension deductions from her pay, and employer’s contributions, had not been paid into a pension account since her employment commenced. Mrs S confirmed that at that date her pension account balance was zero.

On the same day, Mr Tavares told Mrs S that her pension contributions had not been paid due to an error with the Scheme administrator’s system.

On 6 March 2024, Mrs S contacted Mr Tavares again and said by that date her pension account had only received £26.65, which was on 31 January 2024.

On 2 May 2024, Mrs S contacted Mr Tavares explaining that she had received a letter from the Scheme administrator explaining that Solange Bakery Ltd had been reported to The Pensions Regulator (TPR).

On 9 May 2024, Mrs S raised a formal grievance with Mr Tavares, in which she set out a complaint about the non-payment of her pension contributions. Mrs S requested that the unpaid contributions be paid to her Scheme account within the next eight weeks.

On 3 June 2024, Mrs S contacted Mr Tavares again seeking a response to her complaint.

On the same date, Mr Tavares told Mrs S that a direct debit mandate for future pension payments had been set up. He also said that he had tried to pay the outstanding contributions in full over the telephone, but the payments did not go through. Mr Tavares assured Mrs S that the full payment for the outstanding pension contributions would be made before the next payment was due, and that his accountant would email her to confirm when that had been done.

On 3 July 2024, Mrs S messaged Mr Tavares and said that eight weeks had passed since her formal complaint was made and, in that period, there had been no pension payments made into the Scheme despite his assurance there would be.

On 4 July 2024, Mr Tavares acknowledged Mrs S’ message from the previous day and said he would provide details of the Solange Bakery Ltd pension account and proof of payments being made to the Scheme.

On 11 July 2024, Mrs S contacted Mr Tavares and confirmed receipt of a response to her complaint but stated that the information related to a third party’s details. Mrs S confirmed payments were made into her Scheme account on 31 January 2024 and 22 March 2024. She said at that point there were seven months of pension contributions which remained outstanding.

On 13 September 2024, Mr Tavares told Mrs S that the Scheme administrator had not started taking the direct debit pension payments due to the Scheme, so he had

2 CAS-130996-Q6W2 made manual payments for July and August 2024, which he said would bring her Scheme account up to date.

On 16 October 2024, Mrs S brought her complaint to The Pensions Ombudsman (TPO).

On 12 November 2024, Mrs S contacted Mr Tavares again. She said that no pension payments had been made to her Scheme account since a previous conversation on 8 November 2024. Mr Tavares responded the same day and assured Mrs S that he was trying to find out why the pension payments were not being made.

On 5 December 2024, the Scheme administrator informed Mrs S that Solange Bakery Ltd wished to stop using its service from 2 January 2025.

On 7 January 2025, Mrs S was enrolled into the Scheme under Artisan Traditions Ltd.

On 13 January 2025, Mrs S told TPO that from 2 January 2025 her payroll had changed from Solange Bakery Ltd to Artisan Traditions Ltd with the contributions for November 2024, and December 2024 remaining outstanding.

On 21 January 2025, Mrs S contacted Mr Tavares to tell him that two payments had still not been paid into the Scheme account for her.

On 27 January 2025, Mrs S messaged Mr Tavares explaining she had spoken to the Scheme administrator and had been advised to ask for proof of contributions being paid for November 2024, and December 2024.

On 6 February 2025, Mrs S contacted Mr Tavares again enquiring about the December 2024 and January 2025 pension contributions. Mrs S added that she was finding the situation tiresome, time consuming and stressful.

On 8 February 2025, the Scheme administrator informed Mrs S that Solange Bakery had told it there were no further contributions due from it.

On 6 March 2025, TPO emailed Mr Tavares, but no response was received.

On 10 March 2025, Mrs S told TPO that she had never been provided with a contract of employment by Mr Tavares.

On 28 March 2025, TPO emailed Mr Tavares again for a response to Mrs S’ complaint. This request was also sent to Mr Tavares by post, but no response was received.

On 11 July 2025, Mr Tavaras explained that the last payment into her Scheme account was made on 1 April 2025 and that four months of pension contributions remain outstanding.

Mrs S provided TPO with copies of her payslips that she held for the period September 2023 to August 2025 which detailed the pension contributions deducted from her pay and the corresponding employer contributions.

3 CAS-130996-Q6W2 Mrs S provided TPO with copy details of the payments made into her Scheme account, by Solange Bakery Ltd and Artisan Traditions Ltd, representing the deductions from her pay and the corresponding employer contributions, as shown in Appendix One.

Mrs S explained to TPO that the pension deductions made from her pay in the name of Artisan Traditions Ltd between April 2025 and August 2025 were not remitted to her Scheme account, nor were the employer’s contributions, as shown in Appendix One.

Adjudicator’s Opinion Mrs S’ complaint was considered by one of our Adjudicators who concluded that further action was required by Artisan Traditions Ltd

the Adjudicator stated was also required to take action, as contributions paid into Mrs S’ Scheme account were deemed

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The Adjudicator added however, that at the time of his Opinion an employee pension contribution of £32.92 had been deducted from Mrs S’ August 2025 pay. Mrs S’ payslip also showed an entry for an employer’s pension contribution of £24.69. He said at that point these contributions were not considered late but confirmed to Artisan Traditions Ltd they were to be paid into Mrs S’ scheme account by 22 September 2025.

Following the Adjudicator's Opinion, Mrs S confirmed to TPO that Artisan Traditions Ltd had not remitted the August 2025 employee or employer pension contributions into the Scheme. Therefore, the total amount unpaid to Mrs S’ pension account had increased to £216.71, being £123.83 in employee contributions and £92.88 in employer contributions.

The Employer did not respond to the Adjudicator’s Opinion and the complaint was passed to me to consider. I agree with the Adjudicator’s Opinion.

Ombudsman’s decision Mrs S has complained that she has suffered maladministration as Artisan Traditions Ltd did not remit all of her pension contributions into the Scheme along with its corresponding employer contributions.

Mrs S also complained that

5 CAS-130996-Q6W2 Based on the evidence provided by Mrs S, and details from her Scheme account, for September 2023, did not complete her enrolment with the Scheme until 27 October 2023.

should be in

the Employers Automatic enrolment requirements in the UK, state that employers must ensure that both their own and their employees’ pension contributions are paid to the pension provider promptly. Where contributions are paid by cheque they must be paid by 19th day following the month in which deductions were made, and where they are paid electronically, then they must be received by the pension provider no later than 22nd day of the month following the month in which deductions were made. This obligation is set out in the Pensions Act 2008 (the Act) and the Occupational and Personal Pension Regulations 2013 (the Regulations).

In accordance with the Act and the Regulations, it was the Employers’ duty to ensure that contributions were remitted to the Scheme in a timely manner and no later than the 22nd day of the month following the deduction. It is clear that the Employers failed to meet this statutory obligation, and I find that this amounts to maladministration. Mrs S

Artisan Traditions Ltd’s failure to pay all employee and employer contributions into the Scheme due for the period April 2025 to August 2025 . This amounted to £216.71, being £123.83 in employee contributions and £92.88 in employer contributions.

Mrs S is entitled to a distress and inconvenience award in respect of the significant ongoing non-financial injustice which she has suffered. This was exacerbated by the failure of the Employers to resolve the dispute during TPO’s investigation into Mrs S’ complaint.

6 CAS-130996-Q6W2 Directions To put matters right, the Employer shall within 28 days of the finalisation of this complaint: -

(i) Artisan Traditions Ltd shall pay Mrs S £500 for the significant distress and inconvenience she has experienced;

(ii) Artisan Traditions Ltd shall pay £216.71 into Mrs S’ Scheme account for the period April 2025 to August 2025. This figure represents the amount that, according to the figures provided by Mrs S, has been deducted from her pay, but not paid into the Scheme account. It also includes the employer’s contributions for the relevant period which should have also been paid but have not been paid to date;

(iii) Solange Bakery Ltd and Artisan Traditions Ltd shall establish with the Scheme administrator whether the late payment of contributions between September 2023 and August 2025 has meant that fewer units were purchased in Mrs S’ Scheme account than she would have otherwise secured, had the contributions been paid on time; and

(iv) Solange Bakery Ltd and Artisan Traditions Ltd shall, on a joint and several liability basis, pay any reasonable administration fee should the Scheme administrator charge a fee for carrying out the above calculation.

Within 14 days of receiving confirmation from the Scheme administrator of any shortfall in Mrs S’ units, Solange Bakery Ltd and Artisan Traditions Ltd shall each pay the cost of purchasing any additional units required to make up the shortfall in respect of the contributions that each of them paid late.

Camilla Barry

Deputy Pensions Ombudsman 9 October 2025

7 CAS-130996-Q6W2 Appendix One Payslip Employee Employer Employer name Date payment date contribution contribution received by Scheme

29/09/23 £15.25 £11.44 Solange Bakery Ltd 31/01/24

31/10/23 £11.09 £8.31 Solange Bakery Ltd 22/03/24

30/11/23 £20.88 £15.66 Solange Bakery Ltd 22/03/24

29/12/23 £12.54 £9.41 Solange Bakery Ltd 11/07/24

01/02/24 £5.25 £3.94 Solange Bakery Ltd 11/07/24

29/02/24 £19.63 £14.72 Solange Bakery Ltd 11/07/24

28/03/24 £5.04 £3.78 Solange Bakery Ltd 11/07/24

30/04/24 £20.38 £15.29 Solange Bakery Ltd 11/07/24

31/05/24 £17.64 £13.23 Solange Bakery Ltd 11/07/24

01/07/24 £16.72 £12.54 Solange Bakery Ltd 23/07/24

*01/08/24 £18.55 £13.92 Solange Bakery Ltd 13/09/24

*30/08/24 £35.94 £26.96 Solange Bakery Ltd 13/09/24

01/10/24 £25.19 £18.89 Solange Bakery Ltd 27/11/24

01/11/24 £18.55 £13.92 Solange Bakery Ltd 27/11/24

29/11/24 £19.47 £14.60 Artisan Traditions 29/01/25 Ltd

31/12/24 £18.32 £13.74 Artisan Traditions 21/02/25 Ltd

31/01/25 £17.64 £13.23 Artisan Traditions 01/04/25 Ltd

28/02/25 £16.72 £12.54 Artisan Traditions 11/09/25 Ltd

31/03/25 £12.15 £9.11 Artisan Traditions 14/08/25 Ltd

30/04/25 £34.88 £26.16 Artisan Traditions xx Ltd

30/05/25 £17.78 £13.34 Artisan Traditions xx Ltd

8 CAS-130996-Q6W2 30/06/25 £18.27 £13.70 Artisan Traditions xx Ltd

31/07/25 £19.98 £14.99 Artisan Traditions xx Ltd

Sub total Sub total Total owed

£90.91 £68.19 £159.10

**29/08/25 £32.92 £24.69 Artisan Traditions xx Ltd

Total Total Overall Total

£123.83 £92.88 £216.71

*Not considered to have been paid late.

** Not paid into Scheme since the Adjudicator’s Opinion

9 CAS-130996-Q6W2 Appendix Two NEST Scheme Rules

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.

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