HSBC has hired Standard Life to provide a Group SIPP for employees wanting to invest maturing HSBC Share Reward Plans into a pension.
The Group SIPP gives employees an easy way to transfer shares held in the plans with the additional bonus of income tax relief.
HSBC’s Group SIPP will sit alongside its existing defined benefit and defined contribution pension arrangements.
Andy Dickson, senior business development manager Standard Life, says: “Group SIPP arrangements have gone from being a niche to a mainstream pension arrangement in a very short space of time. One in four of our company pension plans currently sold is a Group SIPP.
“The deal with HSBC is unusual in that we have developed a bespoke unitised single company share tracker fund which is invested solely in HSBC stock. This will allow all employees to buy or sell units in this fund, rather than incur individual dealing costs and stamp duty while continuing to fully participate in the growth and success of their company.
“Moving shares into the Group SIPP allows the employee to obtain further tax relief as well as supplementing their retirement funds.”
John Beadle, head of group performance & reward at HSBC, comments: “Our Sharesave Scheme is popular with employees as it provides an opportunity to save up to £250 per month to buy shares in HSBC at 20% below market value.”
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