UK - HSBC has made a one-off payment of £500m into its £6bn final salary scheme as part of a pre-emptive move to plug a growing deficit in the fund.
The bank increased its contributions into the scheme from 16.9% to 20% from August last year. The 2002 annual report showed the fund had a £1.8bn deficit.
However, HSBC will not know the full scale of the pension deficit until Watson Wyatt completes its actuarial review.
Financial services union Unifi has praised the bank for its actions which, it said, showed commitment to existing staff who are members of the closed fund.
But chief negotiator Rob O’Neill said Unifi had identified several issues with the new “inferior” defined contribution schemes, which would be dealt with over the next year.
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