On the go: A resolution against so-called pensions “clawback” at HSBC was defeated at the bank’s annual meeting, with 94 per cent of votes cast against abolishing the practice.
The policy had been the subject of controversy with the Unite trade union protesting outside the bank’s AGM on April 29.
The practice involves an employer cutting its employees’ pensions on the basis that they also receive a state pension.
Clawback was introduced in the 1940s, allowing workers to pay lower contributions into their plans and employers to remove some, or all, of the state pension amount from their pension payments.
In 2019, 96 per cent of HSBC shareholders voted against abolishingclawback at the bank’s AGM.
In this year’s AGM results, only 6 per cent of shareholders voted in favour of the resolution from the Midland Clawback Campaign.
Overall, 40 per cent of shareholders voted on the plans.
Unite has been outspoken on the issue. On April 27, the union released a statement that read: “Former and current employees are demonstrating to expose and stop an unfair practice known as clawback after it emerged that thousands of them are having as much as £2,500 a year snatched from their hard-earned company pension payouts.
“The staff argue that clawback is grossly unfair, disproportionately penalising the lowest paid, mainly women forced to take time off to raise children.”
HSBC and Unite have been contacted for comment.
