Pensions Matter — April 2014: case law round-up
In Smyth (PO-833), the Pensions Ombudsman (PO) found that an employer that delayed payment of pension contributions under a salary sacrifice arrangement was both in breach of contract and in breach of statutory requirements for timely payment.
The PO upheld a complaint by a member belonging to a group personal pension scheme. The PO found that failure by the employer to pay the contributions within a reasonable period of time was a breach of the salary sacrifice agreement. It was also a breach under the member’s contract of employment, to maintain trust and confidence between the employee and the employer. Notwithstanding its contractual breach, the delays that occurred equated to maladministration for breaching statutory requirements in accordance with section 111A of the Pension Schemes Act 1993 and related regulations…
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