UK - Banking giant HSBC is under fire after it merged a subsidiary's pension scheme - which is in surplus - into its own underfunded £3.25bn scheme.
The move followed HSBC’s acquisition of venture capital company Charterhouse and has provoked fears among the subsidiary’s staff that their pensions have been put at risk.
Simmons & Simmons solicitor Kirsty Bartlett said it was natural for members of a scheme in surplus to be concerned when it is merged with one which is in deficit.
But she pointed out that when such a move takes place without consent, members’ pensions are protected by law.
HSBC has also assured Charterhouse scheme members that it had implemented a priority arrangement for them in the event of the HSBC scheme being wound up prior to 2011.
A statement from HSBC added that the merger was “completely above board” and had come with a certificate of approval from its actuary.
Bertschi UK automatically enrols its employees into a health cash plan. Nick Martindale looks at how it put the scheme in place.
Baywater Healtcare decided to implement a cash plan after a management buyout from its US owners. Nick Martindale looks at how it put the scheme in place.
This week's edition of Professional Pensions is out now
PTL has appointed Karein Davie as a client director in its Birmingham office.