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1.12 Retirement and Pensions
The normal retirement age in the bank is currently 65 and your employment will
terminate automatically at the end of the month in which your 65 th birthday occurs,
unless you are otherwise advised by individual notice. Your ‘pensionable retirement
age’ is determined by the section of the pension scheme you are in, and by your
contract, and is shown on your pension statement (age 60 for most employees). The
change to the bank’s working retirement age does not change this in any way. This will
mean that, when you reach your ‘pensionable retirement age’ you will still be able to
decide whether to retire or whether to continue to work until 65, if you are under 65.
1.12.1 The HSBC Defined Contribution Retirement Benefit Scheme
Unless you are already a member of another group pension scheme, the HSBC Defined
Contribution Retirement Benefit Scheme (“DCS Scheme”) is applicable to employees
who entered service on or after 1 July 1996.
For the information of HIUL employees and employees employed in the Isle of Man,
the DCS Scheme is contracted into the State Second Pension (S2P) which replaced the
State Earnings Related Pension Scheme (SERPS) in April 2002.
The DCS Scheme is a savings style type of pension which provides:
• a pension on retirement;
• an ill-health pension (which currently applies if you have five years membership
and are unable to continue in employment because of serious ill-health); and
• security for your dependants, which is currently:
- a lump sum of four times pensionable salary if you die in service plus a refund of
your own pensions contributions;
- a spouse's or civil partner’s pension;
- a children's allowance.
Provided that you are aged 23 or over when you commence employment, you will
automatically become a full member of the DCS Scheme for pension, life insurance and
other benefits. This means that a contribution of 2% of monthly pensionable salary will
automatically be deducted from your monthly pay and paid to the DCS Scheme as a
contribution towards your future pension. Further details on the contributions the bank
will make to the DCS Scheme for your future pension are set out in the DCS Scheme
Explanatory Booklet.
If you are under the age of 23 at the time of commencing employment you will be
automatically admitted to the DCS Scheme for life insurance and qualification service
towards an ill heath pension. When you reach the age of 23 (provided that you are still
an employee of the bank), the contribution of 2% of monthly pensionable salary will
automatically start to be deducted from your monthly pay and paid to the DCS Scheme
as a contribution towards your future pension. You may also make contributions to the
DCS Scheme for your future pension before you reach the age of 23. Details on how
you may do this are set out in the DCS Scheme Explanatory Booklet.
Further details about the DCS Scheme, including the DCS Scheme Explanatory
Booklet, an illustrator of potential pension benefits, Frequently Asked Questions and
details of the DCS Scheme Administration Team, are available on the DCS Scheme
Intranet Site (http://dcsscheme.hacl.uk.hsbc). You can also call 7688 5350 (Internal) or
0845 6095050 (External).
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