I am a former employee. 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. 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. She is “extremely angry” over the clawback practice and wants it to be abolished, which would cost HSBC £450m. A range of benefits, which may cover areas such as work-life balance, insurance and savings, health and personal development. Nicky, another woman affected by the problem, took early retirement on health grounds at 55 following 36 years at the bank. There’s a fundamental conflict with the line they’ve been putting out. “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’.”. She had no idea about the practice, let alone that the bank was not deducting the money. They want £1,600 back, basically.”, Yvonne did not take the news lightly. Pension “clawback” was introduced in 1948, when the state pension launched. Glassdoor is your resource for information about the Pension Plan benefits at HSBC Holdings. The bank’s board “unanimously recommends that shareholders vote against the resolution”. “These individuals said they didn’t know about the scheme and HSBC said it’s perfectly obvious. It is estimated that about 52,000 former HSBC employees are affected. A number of companies including Midland Bank had such schemes but very few still apply clawback. The bank rejects their claims and says the policy is not unfair or discriminatory. She has already had to cut back since HSBC began applying the clawback to her pension. It allows employers to deduct from company pension payments some or all of the basic state pension amount. I started please select I started before 1 July 1996. These pensioners worked hard to earn this income for their retirement,” says national officer Dominic Hook. Employees who want the practice abolished are expected to protest outside the AGM in Birmingham. Such practices were also described as pension integration, a bridging pension or state deduction. They have directed shareholders to vote against our resolution while at the same time asking them to vote for the board’s generous pay increases,” she says. Glassdoor is your resource for information about HSBC Holdings benefits and perks. “That’s not the point,” she says. Box 22 Buffalo, NY 14240. She says she will suffer a deduction of £2,317 a year when she reaches 66 in September 2023 – nearly £200 a month. “I just accepted it. HSBC Bank USA, N.A. HSBC ’ s approach to remuneration consists of four main elements: Fixed pay. Yvonne is shocked at how she is being treated, particularly because HSBC would never treat its customers in the same manner. 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 Trustee of the scheme has contacted the affected individuals.”. 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. HSBC Bank. 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 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. 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