HSBC introduced the deductions in 1975, and the policy applies to about 52,000 members of its scheme who joined the bank between January 1975 and June 1996. A former HSBC senior vice president has filed a lawsuit claiming that the global bank retaliated against him for complaining about sexual harassment aimed at a fellow employee. We would like to show you a description here but the site won’t allow us. – Former employee of a Union Pension Fund “I worked for them almost 18 years and didn’t think I’d be getting a pension. The practice is called “clawback” and it involves cutting an employee’s company pension on the grounds that they also receive the state pension. The practice – which only applies to defined benefit occupational pension schemes – is legal but mostly frowned upon. Everybody is entitled to their state pension as long as they’ve paid their national insurance. She says she will suffer a deduction of £2,317 a year when she reaches 66 in September 2023 – nearly £200 a month. Learn about HSBC Holdings Pension Plan, including a description from the employer, and comments and ratings provided anonymously by current and former HSBC Holdings employees. Clawback affects people who joined Midland Bank between 1975 and 1996 on the defined benefit pension scheme. Your pension asset is valuable and by getting the right advice you will maximise your funds impact on your life and retirement. Yvonne says she enjoyed working for HSBC but has come to realise “they just don’t care about the staff”. “The point is during my career with the bank, I knew that because of broken service and part-time work I wouldn’t come out with anywhere near the maximum pension. Some people stand to lose up to £2,500 a year. These individuals said they didn’t know about the scheme and HSBC said it’s perfectly obvious. When I got the state pension in 2016, I was still getting the same amount,” says Yvonne, who worked as a clerk at branches in north London. The bank isn’t short of a bob or two: last month it reported a 16% rise in 2018 pretax profits to $19.9bn (£15.4bn). Employees who want the practice abolished are expected to protest outside the AGM in Birmingham. Learn about HSBC Holdings, including insurance benefits, retirement benefits, and vacation policy. People like Ann should not have to pay the money back, says Clive Betts, an MP on the all-party parliamentary group (APPG) on pension clawback, which is campaigning to abolish the practice. USA Pension Plan (the “HBUS Plan”). The bank could hold a shareholder vote on the issue at the Annual General Meeting (AGM) on 12 April after the Midland Clawback Campaign Shareholder group put forward a resolution stating the practice is “creating financial hardship”. Groups says bank’s ‘grossly unfair’ policy is costing pensioners up to £2,500 a year, Last modified on Sat 30 Mar 2019 04.04 EDT. But when HSBC announced it was closing the pension scheme in 2015, Tracey decided to take early retirement with a pension of £6,443.64 per annum. Under the rules of the scheme, payouts face a significant cut when former staff begin to receive their state pension. 401k match. Unite the union is supporting the workers. “They wouldn’t do it to customers so why are doing it to the staff? HSBC Premier Service Center. “For someone like me that’s a lot of money,” she says. “I just accepted it. “It is disgraceful that this profitable and wealthy multi-national bank is demanding that pensioners pay them a significant amount of their pension. However, a back office worker retiring on a £10,000 pension, with the same length of pensionable service, suffers the same deduction. Taking this back from me will more than wipe out all that extra money I’ve saved.”. The clawback of their company pension begins when they start to get their state pension. Glassdoor is your resource for information about the Pension Plan benefits at HSBC Holdings. HSBC rejects the clawback label – it uses the term “state deduction”. Former HSBC employees protesting about the pension cuts outside the bank’s annual shareholder meeting in Birmingham last year. Twenty years ago the practice was quite widely used by UK employers: during the late 1990s unions claimed more than 2.5 million pensioners were having money “grabbed back” by their former employers. We’ve not done anything’. HSBC employees are recognized in the Financial Times’ most recent OUTstanding (LGBT+), Empower (ethnicity) and HERoes (gender) lists 2019 – five HSBC employees from Argentina, China and the UK were named in the 2019 ‘HERoes’ lists in recognition of their efforts to champion women in business. Many of the workers claim this “clawback practice” is unfair and that they were never informed about it. P.O. The CEOs make outstanding blunders which cost the bank millions – I can think of a few of them over the length of my career. Premier Banking. Introduction. And it adds that the overall pension benefit received by these members “was and remains market competitive”, particularly given that this section of the scheme operated on a final salary basis and was non-contributory until 2009. Participant Information as of 12/31/2017. HSBC also said she owed in excess of £8,000 to account for the years her company pension had been overpaid. The bank says a number of other UK banks have similar arrangements. Nicky, another woman affected by the problem, took early retirement on health grounds at 55 following 36 years at the bank. Active (Eligible) Participants 6,929; Retired or separated participants receiving benefits 15,187; Other retired or separated participants entitled to future benefits 32,474; Subtotal 54,590; Deceased participants whose beneficiaries are receiving or are entitled to receive benefits 1,950; Total 56,540; Total number of participants as of 01/01/2017 69,225 We Specialise in Helping HSBC Employees and ex employees There are lots of options available and wading through the various choices are daunting. It wasn’t until she looked at her pension estimate in January last year that she found out it was subject to a State Deduction of £1,872.72 when she reached the State Pension age of 67. The CEOs make outstanding blunders which cost the bank millions – I can think of a few of them over the length of my career. “I said: ‘I’m sorry, I spent it in good faith, you gave it to me, you were aware of my status and everything else… I’m not paying it back because I can’t afford it’.”. Campaigners battling one of the world’s biggest banks over the “grossly unfair” way it treats the pensions paid to some former workers are getting ready for a David and Goliath showdown next month. They also claim there is no link to salary or pension received, so it disproportionately penalises the less well-off. They want £1,600 back, basically.”, Yvonne did not take the news lightly. The Trustee of the scheme has contacted the affected individuals.”. No work life balance or no pension plan. It is estimated that about 52,000 former employees of HSBC are affected, and an action group has succeeded in demanding the matter be put to a shareholder vote, while protests are planned for outside the AGM venue on 12 April. Most of staff wasn’t helpful and you have to figure it out on your own. I am a pensioner. Among those affected is Sharon McGeough-Adams, 61, who started working for Midland Bank (which was taken over by HSBC in the early 1990s) in 1976 and retired in 2013. "To locate a lost plan, former employees will need any document that has contact information for their old employers," says Jane Smith, a policy analyst at the Pension … Glassdoor is your resource for information about HSBC Holdings benefits and perks. H SBC has come under fire from politicians for cutting the pension payouts of its former staff by up to £2,500 a year. It is estimated that about 52,000 former employees of HSBC … “HSBC ought to put their hands up and say: ‘We go it wrong, let’s just drop this’,” he tells, “I said: ‘I’m sorry, I spent it in good faith, you gave it to me, you were aware of my status and everything else… I’m not paying it back because I can’t afford it’.”, What time Nicola Sturgeon's Scotland Covid announcement is today, and how to watch live, Butch lesbian opens up about 'increasing harassment' she faces when using the public toilets, I tried Pizza Express' DIY recipe kits - £14 isn't cheap, but worth it for fans of nostalgia, Home Office says EU nationals do not have to prove settled status for jobs before June deadline, New electric car battery is cheap, charges quickly and makes any vehicle 'drive like a Porsche'. Contact the HSBC Administration Team at: The HSBC Administration Team Willis Towers Watson PO Box 652 Redhill Surrey RH1 9AL. Box 22 Buffalo, NY 14240. 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