HSBC is undertaking a streamlining project which will result in the delivery of a new benefits plan in 2015 that will provide all employees with a competitive benefits package, whatever their position in the organisation.
Maria Strid, Head of Performance & Reward at HSBC UK Bank plc, said: “As with any large organisation comes a degree of complexity, particularly as you grow, both through acquisition and organic growth”
“We want to try to make sure we have an employee benefits proposition that is consistent and equitable, and slightly simpler than what we have today, which would also help and support the new organisational structure and our overall business strategy.”
HSBC held a consultation process from January to April 2013 with its employees and staff representative bodies; including pension trustees. “The most high-profile change we proposed was the pension change,” said Ms. Strid. “Our future proposition will be a very competitive defined contribution (DC) pension scheme. We were very clear that this isn’t a cost-cutting exercise at all, and so the premise was also around reinvesting any potential annual savings into the overall proposition, and that’s what we’ve done.”
The new benefits strategy is to be implemented between January and July 2015 and will introduce a trust-based DC scheme with a core employer contribution of 10% on the first £20,000 of salary followed by 9% on the remaining pensionable salary.
HSBC will also be offering to match contributions of up to 7% as well as paying the annual management charges for the scheme. HSBC plans to close its defined benefit (DB) plan to future accrual.