HSBC is consultating with its UK employees on changes to their employment terms and benefits, including the proposed closure of its final salary pension scheme to future accrual, and improvements to the income protection scheme, maternity and paternity pay.
The consultation, which will close at the end of March 2013, is aimed at providing more equitable benefits for the whole UK-based employee population, which currently vary significantly. All employees have the opportunity to provide feedback.
The proposed changes include:
- The final salary pension scheme will be closed to future accrual from July 2014, and all members of the scheme will be transferred into a trust-based defined contribution (DC) pension scheme.
- The DC scheme currently provides staff with a minimum contribution of 8% of annual salary from the employer, regardless of whether they contribute themselves. If staff do contribute to the scheme, employer contributions match up to 5%. The proposed changes are an increase to 8% for matched contributions.
- All employees will be provided with private medical insurance (PMI).
- The bank will improvements to income protection, maternity and paternity pay, and the harmonisation of holiday entitlement for a larger number of staff.
A spokesperson for HSBC said: “The combined changes are not expected to reduce or increase the annual cost of employee benefits to the bank overall.
“Central to the proposal is for all staff on UK-based employment contracts, regardless of role or career level, to be provided with private healthcare and a valuable defined contribution section of the pension scheme.”