You're a deferred hybrid member of the Scheme because you are a former employee who started before 1 July 1996 and left on or after 1 July 2015. This means that you have both a Defined Benefit (DB) pension and a Defined Contribution (DC) pension pot.
Doesn't sound right? Switch member type
DC Fund factsheets
The latest quarterly DC Fund factsheets and the latest monthly flash report are now available in the Information Centre.
Tax-free cash video
As a hybrid member, you can choose whether you want to take your DB pension and DC pension pot together or separately. If you take them at the same time, you may be able to use your DC pension pot towards your overall tax-free cash lump sum. If you want to know more about how much tax-free cash you could take, there’s an easy way to estimate it. Why not watch this video today and find out more.
More things to consider
Manage your DC investments
Is your DC pension pot in line with your retirement plans?
Set your Target Retirement Age
Make sure your target retirement age for your DC pension pot is aligned with when you want to draw your DB pension.
Choose your beneficiaries
Take care of your loved ones when you’re gone
Make your pension work for you
Keeping an eye on your pension benefits can help you hit your desired income at your target retirement date. Visit My Pension to see what’s in your DC pension pot and how well those investments are performing. You’ll need your username and password to log in unless you're on the HSBC network and then you can click here.
From 30 May 2022 you will need to log in to Member Self Service (MSS) to see how much DB pension you accrued.
Announcements
View allMember newsletter is now available
The Trustee has published the member newsletter 2024
Your retirement savings during the current investment market uncertainties
Over the last few days and weeks there has been some global investment market uncertainty and we understand that some members may be concerned about the impact on their pension savings.
Actuarial Valuation as at 31 December 2022
The Trustee is pleased to announce that the formal Actuarial Valuation of the Scheme as at 31 December 2022 has been completed and signed by the Trustee and the Bank.
More about the Scheme
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.
Check your pension
You can do this by visiting My Pension. You'll need your username and password to log in to My Pension. Don't know yours?. If you're on the HSBC network you can click here and you won't need your username and password.
From 30 May 2022 you will need to login to MSS to view details about your hybrid benefits. You will still have access to My Pension which will show the most up to date value for your DC pension pot.
Are your contact details up to date?
It’s important to keep your contact details current. Visit My Pension to do this. You'll need your username and password unless you're within the HSBC network and then you can click here. From 30 May 2022 you will need to login to MSS to view and update your contact details.
If you're still an HSBC employee and have opted out of the pension scheme please also contact HR Direct to update your contact details.