One of the choices you have as a deferred hybrid member is to transfer out the value of your pension benefits to another pension scheme.

You can transfer your DB pension, DC pension pot or both, to a new employer's pension scheme or any registered pension arrangement. If you choose this option you need to complete a Transfer-out Request form which you can find in the Information Centre.

As a hybrid member, when you decide you want to take your benefits, your DB pension will be calculated using two methods and you’ll receive whichever one produces the highest pension:

1. A pension based on your DB pensionable service up to 30 June 2015 and your DB pensionable salary at date of leaving (which will include any salary increases from 1 July 2015).  This will then be revalued in line with the Scheme rules to help protect your benefits from inflation, 

or

2. A pension based on your DB pensionable service and DB pensionable salary as at 30 June 2015, revalued in line with the Scheme Rules as if you left service (to help protect your pension against the impact of inflation) from 1 July 2015 up to your retirement date.

The Lifetime Allowance (LTA) was the maximum amount that someone could save in their pension without incurring additional tax. The LTA has now been abolished and has been replaced by two new lump sum allowances. From 6 April 2024, the total amount of your pension savings (across all your pension schemes) that can be paid as tax-free lump sums will be limited by the Lump Sum Allowance and the Lump Sum and Death Benefit Allowance. 

The Lump Sum Allowance is a limit on the total amount of tax-free cash you can take at retirement. It is currently set at £268,275 for most people, although you may have a higher allowance (for example, if you hold an LTA protection). 

This limit applies if you take a one-off tax-free cash lump sum when you start taking your pension pot. It will also apply to the total amount that you receive tax-free if you decide to take multiple lump sums over a period of time (part of which are tax-free). If the total amount of tax-free cash lump sum(s) across all your pension schemes (including from defined benefit schemes) exceeds your available Lump Sum Allowance, you will pay income tax on the excess amount at your marginal rate. 

The Lump Sum and Death Benefit Allowance is a limit on the total amount of tax-free lump sums payable at retirement, on your death or in cases of serious ill health. It is currently set at £1,073,100, for most people, although you may have a higher allowance (for example, if you hold an LTA protection).
If the total tax-free lump sums or death benefits paid out exceeds your available Lump Sum and Death Benefit Allowance, the recipient will pay income tax on the excess amount at their marginal rate. 

The amount of these allowances that you have available when your benefits are paid from the Scheme may be reduced if you have already received a tax-free cash lump sum from one of your pension schemes or if you started to receive benefits from one of your pension schemes before 6 April 2024.
If you have received any benefits before 6 April 2024 we are required to calculate your available allowances on the assumption you took the maximum amount of tax-free cash that you could when you took your benefits. If you took less tax-free cash than this, you may benefit from applying for a Transitional Tax-Free Amount certificate. In order to do so, you will need to provide us with evidence of the benefits you have previously received, including the amount that was paid to you tax-free.

If you get a certificate this will mean that the adjustment to your Lump Sum Allowance and  Lump Sum and Death Benefit Allowance will reflect the actual amount of tax-free cash you have received. This may lead to a better or worse outcome, so you should consider carefully whether or not to apply for a certificate. 
If you are unsure about whether or not you would benefit from applying for a Transitional Tax-Free Amount Certificate we recommend you speak to an independent financial adviser.

Please note that if you want to apply for a certificate you need to do this before you take a tax-free lump sum for the first time after 5 April 2024. If you do not get a certificate before this you will lose your right to apply for one. This could mean you may end up paying more tax than you need to when you receive your benefits from the Scheme and from other pension schemes of which you are a member.

Please also note that the information in this section (Your new lump sum allowances) may not apply to Guernsey, Jersey or Isle of Man members.

For more information, please contact the HSBC Administration Team.

You can find out more information here.

If you die as a deferred hybrid member of the Scheme (after leaving HSBC but before you’ve retired), the total value of your DC pension pot (including the value of HSBC’s contributions) will be paid as a lump sum at the Trustee’s discretion. What happens to your DB pension savings will depend on your original scheme. As a deferred hybrid member, it’s important to make sure you keep your beneficiaries’ details up to date. To find out more about your DB benefits, visit the Information Centre and go to ‘Member Guides’. Then select your former scheme booklet.

For more information about protection benefits visit our choose your beneficiaries page. From 30 May 2022 you will need to update these dates on the nominations and dependents page in Member Self Service (MSS). 

If you want to know exactly how much financial support your family would receive you can use the calculations and examples in the ‘Your DB and DC Pension Benefits Working Together’ (4.6MB, PDF) in our Information Centre.

Any consideration of a divorcing couple’s assets usually includes pension rights. Our HSBC Administration Team can help if you want more information. Remember to update your personal details if you’re getting divorced or dissolving your civil partnership. You should also make sure your details are up to date on the My Beneficiaries page in My Pension. You'll need your username and password unless you're on the HSBC network and then you can click here.

From 30 May 2022 you will need to login to MSS to update these details. 

Contact us