HSBC introduces first integrated retirement benefit solution in Middle East

At a presentation to a number of selected corporate clients in Dubai on 8 February, representatives of HSBC Bank Middle East, HSBC Insurance Brokers, HSBC Securities Services, Sinopia, HSBC Asset Management, HSBC Actuaries and Consultants, and other business units explained the HSBC Employee Benefits Plan in detail.

The new Plan allows employers to fund their end-of-service gratuity liabilities, and employees to make regular savings for their retirement, as well as to top up benefits received from their employers (such as life and medical cover).

"To comply with the latest international accounting standards, companies need to be able to demonstrate how they are funding for their retirement and end-of-service liabilities. The HSBC Employee Benefits Plan provides an ideal vehicle for them to achieve this" says John Holden, Regional Manager Insurance Businesses of HSBC Bank Middle East. "It provides employers with a "one-stop-shop" for their employee benefits, and it allows individuals to take control of their long-term savings for their retirement, using world-class investment solutions, and benefiting from very competitive pricing," he added.

The HSBC Employee Benefits Plan offers three core benefits:
-investment vehicles to build up a lump sum for retirement or end-of-service, through regular savings from payroll and lump sum contributions
-a full range of employee benefits insurance including medical cover, cover for death-in-service, disability and income protection
-administration support to remove the burden from companies' own HR departments, and to allow employees online access to their Plan through the internet

The programme is designed around an international trust in the Isle of Man or other recognized international jurisdictions. The trust will enable employer and employee contributions to be managed and accounted for separately and provides estate-planning support. Due to its innovative design, individuals are able to continue their investment plan after retiring or changing employers during their careers. This makes the HSBC Employee Benefits Plan an ideal retirement savings vehicle for globally mobile individuals or those working in dynamic industries.

The proposition combines HSBC's insurance, investment and trustee capabilities to offer an unmatched solution for those seeking a flexible and efficient vehicle for their retirement needs. It provides a full range of conventional investments including HSBC Multimanager best of breed funds, and Sinopia's ground-breaking programme guaranteeing all contributions, with upward lock-in. It also offers a fast-expanding range of Islamic investment products from the HSBC Group and other reputable providers.

The costs of the Plan are substantially below the charges for normal investment funds, though the range will be designed to favour long-term contributions rather than lump sums.

"In this very competitive and changing environment, one of the key challenges facing employers is attracting and retaining the best quality staff to help them grow and prosper. The HSBC Employee Benefits Plan is a world-class solution to enable them to do just that. From the employee's perspective, HSBC is a world-leading quality brand for financial services adding comfort that the benefits will be around for the long term. In future, we expect local and regional benefit programs to follow international trends to become one of the key reasons quality people select their employers," concludes John Holden.