HSBC Life outsources £1.8bn DC pension assets to Fidelity

HSBC Life has taken steps to outsource £1.8bn from its defined contribution pension plan to the Fidelity investment platform, the FT reports.

The bank’s in-house pension provider revealed back in June that it was pulling out of the workplace pensions market as part of plans to sell its UK third-party pensions business to ReAssure in 2015.

The move by HSBC marks the largest shift of any DC pension plan in the UK. The HSBC pension scheme currently has 38,000 members.

HSBC Bank Pension Trust chief operating officer Phillip Bretnall told the newspaper that existing members on the HSBC life DC pension plan had experienced minimal disruption and risk during the transition.

Fidelity head of DC and workplace savings Julian Webb added that the assets had been transferred over to the platform at zero cost.

Webb also reassured that members would continue have the same service thanks to a replication of the funds on offer on the existing HSBC DC pension scheme.

Watson Technology and Administration Solutions are set to continue administering member accounts following the transition.