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HSBC Work Pension Scheme nightmare!
LDee81
Posts: 4 Newbie
Hi,
Back in May 2010 while I was maternity leave, I was sent an email from my employer to let me know that our existing HSBC pension scheme was being transferred to a more up-to-date version on the scheme, which would allow us to access it online and keep track of our balances, make changes to contributions & funds, etc.
My Finance Director informed me that I would not have to do anything and that the transfer of the existing scheme into the new scheme would take place automatically. Everything would be done by HSBC. This sounded too good to be true. And it turns out that it was...
Fast forward 18 months and a couple of us were talking in the office about the pension scheme. I had been doing a major review of my finances in preparation for renewing my mortgage and had realised that HSBC had been continuing to take by DD contributions for the old scheme, as well as taking the contributions for the new scheme at source out of my monthly wages. I felt really stupid for not realising, but soon discovered that there were at least half a dozen of us in the same position. We had all been led to believe that we would not have to do anything and that the transfer of one scheme into the other would happen automatically. It turns out that we were enrolled in the new scheme automatically, but the transfer of the old fund into the new fund had not happened and the DD had not been cancelled.
Needless to say, we raised this issue with our Finance department and HR immediately. I was given a contact at HSBC pension department and called them. When I explained the situation, I got the stock response "We are not accepting transfers into our pension funds at this time, nor do we foresee this happening again in the short term". I was very patient with the lady I spoke to, understanding that whilst I didn't doubt what she was saying, she was in fact missing the point; as far as I was concerned, the fact that they aren't currently accepting transfers does not change the fact that the transfer should have taken place 18 months beforehand - and what did they intend to do about it? Got the same response, so decided it was a dead end and I had done all I could to start with.
In the interim, our company had been bought out by a larger company and we now had access to a IFA. Myself and the other affected employees provided him with the numbers of both schemes and signed letters of autorisation to allow him to look into the issue on our behalf. We thought this would at least give us some clout, especially as he was doing it on behalf of a group of people. We thought wrong!
The IFA has been working on this for a year with no joy. The last time I spoke to him was in November when he visited our site to give us the latest update. HSBC were being unwavering and he had not managed to convince them that they had actually misrepresented the scheme to us and not done what they had promised (transfer for balance of old scheme into new scheme, cancellation of Direct Debits, etc).
It looks as though the only option open to those of us who want our pensions consolidated into a single pot, is to move the entire balance of both schemes into a new one with Aviva. This seems like a complete pain to me and I am concerned that I will be liable for 2 sets of transfer charges to put right a mistake that wasn't my fault.
Can anybody please explain why HSBC have been so difficult, and why this has taken so long and remains unresolved? In theory this seems like such a simple and straightforward thing to do: they didn't do what they promised and the transfer of the old fund into the new fund shouldn't take any more effort than pushing a button, should it? Am I missing something here?
Any help or advice would be very gratefully received - this is such a frustrating situation for us all. I'm annoyed with myself for taking so long to realise that I was making 2 pension contributions per month, but would appreciate some guidance to make sure I have explored every possible avenue before giving up.
Back in May 2010 while I was maternity leave, I was sent an email from my employer to let me know that our existing HSBC pension scheme was being transferred to a more up-to-date version on the scheme, which would allow us to access it online and keep track of our balances, make changes to contributions & funds, etc.
My Finance Director informed me that I would not have to do anything and that the transfer of the existing scheme into the new scheme would take place automatically. Everything would be done by HSBC. This sounded too good to be true. And it turns out that it was...
Fast forward 18 months and a couple of us were talking in the office about the pension scheme. I had been doing a major review of my finances in preparation for renewing my mortgage and had realised that HSBC had been continuing to take by DD contributions for the old scheme, as well as taking the contributions for the new scheme at source out of my monthly wages. I felt really stupid for not realising, but soon discovered that there were at least half a dozen of us in the same position. We had all been led to believe that we would not have to do anything and that the transfer of one scheme into the other would happen automatically. It turns out that we were enrolled in the new scheme automatically, but the transfer of the old fund into the new fund had not happened and the DD had not been cancelled.
Needless to say, we raised this issue with our Finance department and HR immediately. I was given a contact at HSBC pension department and called them. When I explained the situation, I got the stock response "We are not accepting transfers into our pension funds at this time, nor do we foresee this happening again in the short term". I was very patient with the lady I spoke to, understanding that whilst I didn't doubt what she was saying, she was in fact missing the point; as far as I was concerned, the fact that they aren't currently accepting transfers does not change the fact that the transfer should have taken place 18 months beforehand - and what did they intend to do about it? Got the same response, so decided it was a dead end and I had done all I could to start with.
In the interim, our company had been bought out by a larger company and we now had access to a IFA. Myself and the other affected employees provided him with the numbers of both schemes and signed letters of autorisation to allow him to look into the issue on our behalf. We thought this would at least give us some clout, especially as he was doing it on behalf of a group of people. We thought wrong!
The IFA has been working on this for a year with no joy. The last time I spoke to him was in November when he visited our site to give us the latest update. HSBC were being unwavering and he had not managed to convince them that they had actually misrepresented the scheme to us and not done what they had promised (transfer for balance of old scheme into new scheme, cancellation of Direct Debits, etc).
It looks as though the only option open to those of us who want our pensions consolidated into a single pot, is to move the entire balance of both schemes into a new one with Aviva. This seems like a complete pain to me and I am concerned that I will be liable for 2 sets of transfer charges to put right a mistake that wasn't my fault.
Can anybody please explain why HSBC have been so difficult, and why this has taken so long and remains unresolved? In theory this seems like such a simple and straightforward thing to do: they didn't do what they promised and the transfer of the old fund into the new fund shouldn't take any more effort than pushing a button, should it? Am I missing something here?
Any help or advice would be very gratefully received - this is such a frustrating situation for us all. I'm annoyed with myself for taking so long to realise that I was making 2 pension contributions per month, but would appreciate some guidance to make sure I have explored every possible avenue before giving up.
0
Comments
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sounds like time for a formal complaint and a trip to the Ombudsman?
Are you still paying twice? Did all the contributions that were 'extra' actually go into the old plan? Can you transfer just the old plan?0 -
As soon as I noticed that the DD was still active, I cancelled it at my end immediately and rang HSBC to get them to cancel the payments too. And all the contributions made it into my old scheme, which I can see on my statement. So no worries there luckily.
I hadn't thought about just transferring the old plan - but I'd always assumed it would be better to have just the one "pot". I already have another pension from my previous employer and the IFA did not recommend amalgamating that one into my existing scheme as the terms are excellent. I cannot afford to make additional contributions to this scheme at present (and am not sure whether I am entitled to).
I do not know how long I will be with my current company (although I'm not making any plans to leave any time soon) but I am wary of ending up with several small pots dotted all over the place when I retire!0 -
It is normal to have different pots, so don't worry on that score. If you find a PP with better terms and investments than the HSBC one, then transfer it. If not, you've made some extra contributions this year so be happy you have a larger pension pot overall.
I would still complain though. And use the Finance Directors name in the complaint using the date if you can remember it.0 -
It is normal to have different pots, so don't worry on that score. If you find a PP with better terms and investments than the HSBC one, then transfer it. If not, you've made some extra contributions this year so be happy you have a larger pension pot overall.
I would still complain though. And use the Finance Directors name in the complaint using the date if you can remember it.
I do agree with you man.The person should not bother about this and there is no need of any transfer because you would have a sufficient amount in your hand.Just be patient
Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam0 -
Thanks guys.
Looking back into it all (it's been going on for so long, I had forgotten some details!) I actually wrote to HSBC in February 2012 to ask them to investigate the issue. Can't find a reply from them. Not that I'm surprised.
The IFA is coming in to the office tomorrow, so I will hopefully get some kind of progress report.0
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