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Failure to pay compensation – The case study of Ms N

Complaint Topic: Misquote/Misinformation
Outcome: Upheld
Type: Pension complaint or dispute

Ms N was a member of the Tesla Motors Limited Pension Scheme (the Scheme). In early 2016, Ms N raised a complaint because her employer had failed to pay employee and employer contributions into the Scheme. The complaint was investigated by this office and was treated as resolved when the respondent agreed to pay the unpaid employer and employee contributions into the Scheme in July 2016. Ms N accepted this proposed resolution.

In July 2017, after checking her pension statement, Ms N found that the unpaid contributions had not been paid into the Scheme as promised. Ms N raised a further complaint with the respondent. The unpaid contributions were finally paid in September 2017.

Ms N made a further complaint to this office about the delay in the payment of the contributions. The respondent argued that by transferring the unpaid contributions to the Scheme, and compensating Ms N for lost investment growth, it had provided her with sufficient redress for its maladministration.

The Deputy Ombudsman disagreed and said that the failure to transfer the unpaid contributions to the Scheme, as promised in July 2016, caused Ms N to suffer significant distress and inconvenience. The respondent was ordered to pay Ms N £500 for the significant distress and inconvenience caused.  

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