HSBC slashes pensions as cash pours in

The bank's chiefs plan to close down HSBC's final-salary pension scheme in an effort to boost their huge profits even further.

They announced the decision to close the pension scheme to "future accrual" - the build-up in value of pensions - effectively freezing the scheme. It condemns future retirees to struggle financially and potential poverty after a lifetime's work.

Bosses said that shutting the scheme, combined with cutting holidays and sick pay, would save the bank £46 million a year.

The Unite union slammed the decision and said that 10,000 staff would be affected. Some HSBC employees are being paid as little as £14,000 a year.

Unite condemned the plan as "a devastating blow to scheme members."

The company is also to reduce employees' holiday entitlement by two days a year.

Unite national officer Dominic Hook said: "Long-serving HSBC staff earning as little as £14,000 a year are having their pensions attacked while the bank announces astronomical profits.

"In an act of sheer pettiness the billion-dollar bank is snatching two days holiday a year from its staff and cutting sick pay.

"The savings the bank is making from these changes are a drop in the ocean compared with its profits and the bonuses being awarded. HSBC can easily afford to provide decent pensions to all its staff.

"Over 200 employees at the bank are pocketing bonuses almost four times more than the savings the company is making by attacking pensions and holidays. It's an outrage.

"There will be little sympathy for David Cameron's and Boris Johnson's opposition to a cap on bankers' bonuses when banks like HSBC behave so unacceptably," he said.

Companies are increasingly scrapping private-salary schemes in favour of "money purchase" ones, which offer no guarantee of a decent pension.