Leaving HSBC

What happens when you leave HSBC?

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Leaving the Scheme

When you leave the Scheme, your DB pension will be based on your DB pensionable salary at the date of your leaving. Also, the money that you and HSBC are putting into your DC pension pot will stop. 

Your options on leaving the Scheme

When you leave the Scheme we’ll send you a ‘Statement of deferred benefits’ and a ‘Leaving the scheme’ guide as part of a leaver pack. This will show your DB benefits built up to your date of leaving and the value of your DC pension pot. This will give you more information about your choices and what to do.

When you leave you can: 

  1. Leave all your benefits in the Scheme – this means you’ll be a deferred hybrid member; or
  2. Transfer all your benefits in the Scheme to another pension scheme (for example, your new employer’s pension scheme or a personal pension plan); or
  3. Transfer part of your benefits (either your DB benefits and/or your DC pot) to another pension scheme; or 
  4. Take your benefits any time after age 55 (generally subject to Trustee consent if under Normal Retirement Age). 

If you want to transfer out your DB benefits to a defined contribution arrangement, you must take financial advice first. If the value of your DB benefit is over £30,000, you must prove that you’ve taken financial advice.


Transferring to another scheme

When you leave HSBC, you can transfer the total value of your pension pot to another registered pension arrangement, such as your new employer’s pension scheme or a personal pension, or a qualifying overseas scheme.


How to request a transfer

If you wish to transfer your benefits from the Scheme, you will need to request a transfer-out request form from the HSBC Administration Team, which you should complete and return. Once the team has processed your form, they will send you a transfer value quotation showing the value available to transfer.


Transfer checks and timescales

Transfers can take several months (at least three months, and often longer). Before your transfer can go ahead, checks must be carried out on the arrangement you want to transfer to. You will need to provide information about that arrangement and how your pension pot will be invested, among other things.

Under the Transfer Regulations, you may also need to attend a free Pension Safeguarding Guidance appointment with MoneyHelper to help protect you against pension scams. If this is required, the Administration Team will explain how to book the appointment and what confirmation you need to provide afterwards.

If you want to transfer out your DB benefits to a defined contribution arrangement, you must take financial advice first. If the value of your DB benefit is over £30,000, you must prove that you’ve taken financial advice.


When a transfer won’t be made

There are circumstances in which the Trustee won’t make a transfer. The Trustee will assess your application and, if it does not comply with the Transfer Regulations, may refuse your transfer. For example, your transfer will always be refused if you are offered money or another form of incentive to transfer, including by the new pension arrangement or an adviser involved in the transfer.


After you transfer

If you transfer your entire DC pension pot, you will no longer receive benefits from the Scheme relating to that pot.

For information on how your deferred DB benefit will increase, please look at the ‘Deferred Hybrid’ page.