This Summary Plan Description (SPD) describes the Cash Balance section of the HSBC – North America (U.S.) Pension Plan (the “plan”) as amended through January 1, 2018. Under the rules of the scheme, payouts face a significant cut when former staff begin to receive their state pension. 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. Contact the HSBC Administration Team at: The HSBC Administration Team Willis Towers Watson PO Box 652 Redhill Surrey RH1 9AL. Unite the union is supporting the workers. HSBC also said she owed in excess of £8,000 to account for the years her company pension had been overpaid. These pensioners worked hard to earn this income for their retirement,” says national officer Dominic Hook. However many major employers have either never made use of integration, or withdrawn it partially or fully, or capped the amount. (“HSBC Bank”) before January 1, 1997, individuals who became HSBC Bank employees as a result of the acquisition of Republic National Bank of Campaigners say the practice is “grossly unfair and morally indefensible,” and that staff “were misled”. “We are furious at HSBC. “Why are they taking it? She rejoined full time in 1992 until she left in 2011. A number of companies including Midland Bank had such schemes but very few still apply clawback. Former HSBC employees are being asked to pay back thousands of pounds after the bank failed to apply the rules of an already controversial pension scheme. Photograph: Lawrence White/Reuters. 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. Employee share plans and discretionary pay awards based on performance 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. There’s a fundamental conflict with the line they’ve been putting out. HSBC began applying the clawback to Yvonne’s pension, which was cut to roughly £242 a month and offered her the option of paying back the sum she owed by further reducing her monthly pension. Active (Eligible) Participants 5,446; Retired or separated participants receiving benefits 16,105; Other retired or separated participants entitled to future benefits 27,335; Subtotal 48,886; Deceased participants whose beneficiaries are receiving or are entitled to receive benefits 2,294; Total 51,180; Total number of participants as of 01/01/2018 52,679 So obvious they didn’t even know about it themselves in this case? For example, in 1999 Barclays capped the maximum deduction at around £950 a year, and BP scrapped deductions the following year. Yvonne says she enjoyed working for HSBC but has come to realise “they just don’t care about the staff”. There is little or no common ground between the two sides. We’ve not done anything. I worked the whole of my working life. And then they slap that on me. When asked about demanding money back from people affected by the pension scheme, HSBC said: “An error by the pension scheme administrators has unfortunately meant a small number of members have been impacted. Others former employees have smaller amounts of money to pay back but they still cannot afford it. Personal Banker (Former Employee) - Yonkers, NY - November 5, 2020 I was micromanaged every second and constantly asked about my sales goals every second . ‘I don’t know if I can put the heating on’: Ex-HSBC employees angry over ‘unfair’ pension scheme. HSBC is one of the employers that makes a deduction, and some of its ex-staff argue they are losing out on up to £2,500 a year. Such practices were also described as pension integration, a bridging pension or state deduction. Phone: 01737 227575 (Monday to Friday between the hours of 9am and 5:30pm, excluding bank holidays.) “And then out of the blue, I got a letter in 2017 saying they’d overpaid me by £1,600. “It is disgraceful that this profitable and wealthy multi-national bank is demanding that pensioners pay them a significant amount of their pension. Pension “clawback” was introduced in 1948, when the state pension launched. Annual leave. a recent formal complaint has been unsuccessful. The CEOs make outstanding blunders which cost the bank millions – I can think of a few of them over the length of my career. HSBC Bank. Yvonne says she has no way of paying back the £1,600. Learn about HSBC Holdings, including insurance benefits, retirement benefits, and vacation policy. Box 22 Buffalo, NY 14240. 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. 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. Unrealistic sales goals and tough training activities and having to live in constant fear of losing ur job . Participant Information as of 12/31/2018. It allows employers to deduct from company pension payments some or all of the basic state pension amount. USA Pension Plan (the “HBUS Plan”). So obvious they didn’t even know about it themselves in this case? I did more than my fair share and I helped out the bank so much when I was working all the extra hours for them. Having to pay back the money through monthly instalments would not put Ann “on the breadline” but she would have to reconsider her outgoings. The bank rejects their claims and says the policy is not unfair or discriminatory. The timing is also unfortunate for HSBC, which is embroiled in a row over bumper executive pensions. HSBC Customer Service Address. “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'. “At the time this feature was introduced in 1975, a large number of pension schemes integrated their pension benefits with the state pension, and a significant number of these schemes continue to contain similar features, albeit using different approaches to achieve the integration.”. HSBC's Future of Retirement study is a leading independent study into global retirement trends. Former participants in the HBUS Plan include individuals who became employees of HSBC Bank USA, N.A. HSBC rejects the clawback label – it uses the term “state deduction”. P.O. “I just accepted it. She then received another letter telling her the bank was going to start deducting £95 from her company pension each month, bringing it down to £451. HSBC has told shareholders that scrapping the deductions would cost it about £450m. “What they lose sight of is the fact that… we maintained [customer] loyalty by the service we gave them and then they turn round and treat us like this.”. Often the first time people become aware of it is when they reach state pension age – which may be years after they start receiving their company pension – and discover that their income has been reduced. It says this practice “is not unfair, disproportionate or discriminatory”, and has been clearly and consistently communicated to scheme members. The practice is called “clawback” and it involves cutting an employee’s company pension on the grounds that they also receive the state pension. P.O. If we did something wrong at work, we gave a customer compensation, we didn’t ask them for the money back. McGeough-Adams is part of a campaign group that boasts around 10,000 members and is urging the bank to abolish or effectively remedy the practice. They told shareholders to vote against us’, Among those affected is Sharon McGeough-Adams, embroiled in a row over bumper executive pensions. HSBC Bank USA, N.A. Will they sue me?”. Ann Marston, 69, has been told she owes the bank more than £8,000 because it was not applied when she started receiving her state pension at 60. Premier Banking. This is a great surprise.” – Former employee, Major Hotel Chain “I didn’t know All Steel had been acquired by another company who would have my benefits. Benefits information above is provided anonymously by current and former HSBC Holdings employees, and may include a summary provided by the employer. Glassdoor is your resource for information about the Pension Plan benefits at HSBC Holdings. © 2020 Associated Newspapers Limited. Many of the workers claim this “clawback practice” is unfair and that they were never informed about it. 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. Participant Information as of 12/31/2017. We Specialise in Helping HSBC Employees and ex employees There are lots of options available and wading through the various choices are daunting. Nicky, another woman affected by the problem, took early retirement on health grounds at 55 following 36 years at the bank. “For someone like me that’s a lot of money,” she says. The pension scheme was a non-contributory pension final scheme and staff were eligible to join between 31 December 1974 and 1 July 1996. So I put away extra savings every month to try and boost my income in retirement. There’s a fundamental conflict with the line they’ve been putting out. All rights reserved. Constant pressure about getting referrals. Mortgages. We are not permitted to pay you a pension which is above the level that you are entitled to and we must therefore correct the position for the future.”, ‘I think it’s appalling that they could treat us in this way. “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’.”. I am a former employee. 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. The bank says a number of other UK banks have similar arrangements. I am a pensioner. Money was deducted from company pensions to take into account the state pension, avoiding a duplication of benefits. I started please select I started before 1 July 1996. – Former employee of a Union Pension Fund “I worked for them almost 18 years and didn’t think I’d be getting a pension. “They wouldn’t do it to customers so why are doing it to the staff? 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. A range of benefits, which may cover areas such as work-life balance, insurance and savings, health and personal development. 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. Everybody is entitled to their state pension as long as they’ve paid their national insurance. It’s just so unfair,” she says. The bank says the practice is a method of maintaining the pension scheme’s level of income for members in retirement. After a number of former HSBC employees living in Llanelli wrote to her to raise this, Ms Griffith helped to set up a cross-party group of MPs to campaign on the issue. It is estimated that about 52,000 former employees of HSBC … 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. Box 2013 Buffalo, NY 14240. The CEOs make outstanding blunders which cost the bank millions – I can think of a few of them over the length of my career. Former Midland Bank employee Sharon McGeough-Adams expects to lose almost £200 a month. HSBC has so far moved only a "tiny" number of jobs to Paris in order to deal with Brexit, Chief Executive John Flint said on Friday, in the bank's most detailed comments yet on its plans. Working for hsbc has been stressful. Attention: Mail stop NOE 1290 1 Corporate Drive, Suite 360 Lake Zurich, IL 60047-8945 They want £1,600 back, basically.”, Yvonne did not take the news lightly. Spent it, decorated the house. We would like to show you a description here but the site won’t allow us. She says she will suffer a deduction of £2,317 a year when she reaches 66 in September 2023 – nearly £200 a month. Clawback is calculated using a person’s length of service, not their salary. 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 It is estimated that about 52,000 former HSBC employees are affected. No work life balance or no pension plan. The state deduction feature became part of the rules governing the pensions of HSBC Midland employees in 1975 and is applied to benefits accrued before … So obvious they didn’t even know about it themselves in this case?”, “I don’t know if they can take it without my permission and I don’t know, if I refuse permission, what they will do. “HSBC ought to put their hands up and say: ‘We go it wrong, let’s just drop this’,” he tells i. HSBC has so far stuck by the clawback practice, which it refers to as “state deduction”. These individuals said they didn’t know about the scheme and HSBC said it’s perfectly obvious. Sharon McGeough-Adams: ‘We are furious. This form is applicable in the circumstances where: The employee concerned has accrued benefits attributable to the employer's voluntary contributions and/or ORSO transfer; or; The employee concerned has completed at least 2 years of service with the employer. Introduction. However, a back office worker retiring on a £10,000 pension, with the same length of pensionable service, suffers the same deduction. The HBUS Plan merged into the plan on December 31, 2004. 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). I started on or after 1 July 1996. She is “extremely angry” over the clawback practice and wants it to be abolished, which would cost HSBC £450m. Your pension asset is valuable and by getting the right advice you will maximise your funds impact on your life and retirement. Glassdoor is your resource for information about the Pension Plan benefits at HSBC Holdings. Ann, from Nuneaton in Warwickshire, joined Midland Bank in 1965 as a cashier but worked on and off for the next 30 years while she raised her family. The practice disproportionately affects women because they tended to be on lower salaries. But not HSBC. 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”. While Ann cared for him, she had a letter from HSBC informing her that her pension was being reexamined. 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