To ask the Secretary of State for Work and Pensions, what recent representations he has received on the defined benefit occupational pension scheme at HSBC.
16 November 2017
The Department for Work and Pensions has received a number of recent representations on the HSBC defined benefit occupational pension about its pension clawback policy from individuals and from Members of Parliament writing on their behalf.
This is one of a number of what are sometimes called integrated pension schemes. These schemes were designed to avoid additional contributions from sponsors and members by taking account of some or all of the State Pension when calculating the amount of occupational pension payable. The arrangement is set out in scheme rules which would have been available to members when they joined the scheme.
Such arrangements are not a requirement of Department for Work and Pensions legislation. It would not be right to compel schemes to withdraw this integration arrangement. That would amount to a retrospective change imposing significant additional unplanned costs. Pension scheme rules on the calculation of benefits are many and varied, and must remain a matter for employers and scheme trustees to decide.