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Contributions not paid to scheme – The case study of Mr Y

Complaint Topic: Contributions
Outcome: Upheld
Type: Pension complaint or dispute

Mr Y complained that PSDT Limited (PSDT) failed to pay all his pension contributions to his pension scheme.

A total of £728.22 contributions was deducted from Mr Y’s salary but not paid to the scheme. £500 employer contributions were also not paid.

The scheme, Mr Y and TPO tried to sort out the issue of missing contributions but received no response from PSDT. 

The Pensions Ombudsman upheld Mr Y’s complaint, commenting that PSDT had shown a complete disregard of its responsibilities and legal requirements. He ruled that PSDT should:

  • Pay the missing contributions.
  • Pay any fee charge by the scheme to calculate any investment losses. 
  • Pay any investment loss calculated by the scheme (based on the assumption contributions were invested in the same funds as the only contribution received by the scheme.
  • Pay Mr Y £1,000 for the distress and inconvenience.

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