HSBC plans pension changes for 58,000 staff

LONDON (Reuters) - HSBC (HSBA.L) is proposing changes to the pensions of its 58,000 staff in Britain, which could see the normal retirement age raised to 65 from 60 and a third of workers asked to contribute to a final-salary scheme.

Europe's biggest bank outlined the plans on Tuesday, which could require the third of UK staff on the final-salary scheme to pay a contribution from their salary.

HSBC said it had made the proposals as people are living for longer, and every extra year's life expectancy adds 340 million pounds to the liabilities of its final-salary pension scheme.

The bank said it would improve its defined-contribution pension scheme, used by the remaining two-thirds, by increasing its own input.

The bank said it wanted to improve benefits for staff to help it attract and retain employees, and the changes would cost it an extra 54 million pounds next year.

Staff can still retire at 60, but the amount of final salary paid would be reduced to account for it being paid before 65.

(Reporting by Steve Slater, editing by Will Waterman)