Sharon McGeough-Adams: ‘We are furious. "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 … While Ann cared for him, she had a letter from HSBC informing her that her pension was being reexamined. 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. Former participants in the HBUS Plan include individuals who became employees of HSBC Bank USA, N.A. HSBC also said she owed in excess of £8,000 to account for the years her company pension had been overpaid. A number of companies including Midland Bank had such schemes but very few still apply clawback. “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. Attention: Mail stop NOE 1290 1 Corporate Drive, Suite 360 Lake Zurich, IL 60047-8945 She is “extremely angry” over the clawback practice and wants it to be abolished, which would cost HSBC £450m. The practice disproportionately affects women because they tended to be on lower salaries. The HBUS Plan merged into the plan on December 31, 2004. P.O. Yvonne is shocked at how she is being treated, particularly because HSBC would never treat its customers in the same manner. She says she will suffer a deduction of £2,317 a year when she reaches 66 in September 2023 – nearly £200 a month. Glassdoor is your resource for information about HSBC Holdings benefits and perks. HSBC has told shareholders that scrapping the deductions would cost it about £450m. These pensioners worked hard to earn this income for their retirement,” says national officer Dominic Hook. The CEOs make outstanding blunders which cost the bank millions – I can think of a few of them over the length of my career. They want £1,600 back, basically.”, Yvonne did not take the news lightly. 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. So I put away extra savings every month to try and boost my income in retirement. Supporting document for employee's cessation of employment and the date of cessation. “I just accepted it. 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. Learn about HSBC Holdings, including insurance benefits, retirement benefits, and vacation policy. I joined HSBC ... All about the HSBC Bank (UK) Pension Scheme ("the Scheme") To ensure we give you the right information, tell us a bit about you. “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’.”. Participant Information as of 12/31/2017. Such practices were also described as pension integration, a bridging pension or state deduction. Others former employees have smaller amounts of money to pay back but they still cannot afford it. ... Teller (Former Employee) - San Mateo, CA - September 1, 2015. “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.”. LLANELLI’S MP Nia Griffith is campaigning for justice for HSBC employees whose pensions have been reduced by up to £2,500 per year. We’ve not done anything’. 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”. We would like to show you a description here but the site won’t allow us. 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 Spent it, decorated the house. “Why are they taking it? Many of the workers claim this “clawback practice” is unfair and that they were never informed about it. 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. P.O. Email: (Don't forget to include your employee ID number in your correspondence.) So obvious they didn’t even know about it themselves in this case? HSBC ’ s approach to remuneration consists of four main elements: Fixed pay. 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. We’ve not done anything. 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. Introduction. She had no idea about the practice, let alone that the bank was not deducting the money. 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 is calculated using a person’s length of service, not their salary. 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. It’s just so unfair,” she says. The practice is called “clawback” and it involves cutting an employee’s company pension on the grounds that they also receive the state pension. She rejoined full time in 1992 until she left in 2011. It is estimated that about 52,000 former employees of HSBC … Due to poor communication by both the Midland Bank and later HSBC, most current and former employees whose pensions are subject to clawback – those who had service between 1 January 1975 and 30 June 1996 – only found out when they reached state pension age and their income suddenly dropped. “All the other banks have dropped it. 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. HSBC Bank USA, N.A. Around 52,000 people who joined Midland Bank (which later became part of HSBC) were signed up to the now-defunct defined benefit pension scheme between 1975 … The CEOs make outstanding blunders which cost the bank millions – I can think of a few of them over the length of my career. Glassdoor is your resource for information about the Pension Plan benefits at HSBC Holdings. So obvious they didn’t even know about it themselves in this case? 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. The clawback of their company pension begins when they start to get their state pension. “They wouldn’t do it to customers so why are doing it to the staff? 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). Box 22 Buffalo, NY 14240. I joined please select. 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. 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. 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. 401k match. Never mind what else was going on, on top of that, I had all this to contend with,” says Ann. “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.”. Her husband was very ill throughout 2018 and died in October. 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. Benefits information above is provided anonymously by current and former HSBC Holdings employees, and may include a summary provided by the employer. 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 … “I think it’s appalling that they could treat us in this way. The bank’s board “unanimously recommends that shareholders vote against the resolution”. 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. I started please select I started before 1 July 1996. “These individuals said they didn’t know about the scheme and HSBC said it’s perfectly obvious. USA Pension Plan (the “HBUS Plan”). The Trustee of the scheme has contacted the affected individuals.”. 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. 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. Participant Information as of 12/31/2018. Under the rules of the scheme, payouts face a significant cut when former staff begin to receive their state pension. No work life balance or no pension plan. The pension scheme was a non-contributory pension final scheme and staff were eligible to join between 31 December 1974 and 1 July 1996. We Specialise in Helping HSBC Employees and ex employees There are lots of options available and wading through the various choices are daunting. 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. However many major employers have either never made use of integration, or withdrawn it partially or fully, or capped the amount. 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. 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 Cash Balance section of the plan (the “Cash Balance section”) covers employees of HSBC North America Holdings Inc. (“HSBC – North America”) and Participating Employers who were first employed by HSBC … It allows employers to deduct from company pension payments some or all of the basic state pension amount. I am a former employee. According to the lawsuit, the employee reported an incident where a supervisor attempted to force a fellow employee to sleep with a senior banker. They also claim there is no link to salary or pension received, so it disproportionately penalises the less well-off. The timing is also unfortunate for HSBC, which is embroiled in a row over bumper executive pensions. HSBC Customer Service Address. Yvonne says she enjoyed working for HSBC but has come to realise “they just don’t care about the staff”. A senior manager retiring on a £75,000 annual pension might suffer a £2,500 a year deduction on reaching state pension age. 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. I started on or after 1 July 1996. Clawback affects people who joined Midland Bank between 1975 and 1996 on the defined benefit pension scheme. 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. And then they slap that on me. “These individuals said they didn’t know about the scheme and HSBC said it’s perfectly obvious. Pros. Anger as HSBC claws back pension cash HSBC … I am a pensioner. – Former employee of a Union Pension Fund “I worked for them almost 18 years and didn’t think I’d be getting a pension. She has already had to cut back since HSBC began applying the clawback to her pension. They told shareholders to vote against us’, Among those affected is Sharon McGeough-Adams, embroiled in a row over bumper executive pensions. Campaigners say the practice is “grossly unfair and morally indefensible,” and that staff “were misled”. It says this practice “is not unfair, disproportionate or discriminatory”, and has been clearly and consistently communicated to scheme members.

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