The HSBC UK Pension Scheme is to transfer £1.8bn (€2.3bn) of defined contribution (DC) assets to Fidelity, moving it from the bank’s own business.

HSBC said Fidelity UK would offer investment-only services to members, with consultancy Towers Watson retaining control over administration.

The scheme was previously managed by HSBC Life, a subsidiary of HSBC Holdings, but is currently in the process of being sold.

HSBC Life offered corporate and individual pensions, as well as annuities.

However, in June this year, it was announced the bank was selling its life business to Admin Re Group, part of the Swiss Re business.

As part of the deal, Admin Re will take over £4.2bn of assets, most of which was also managed by the banking group’s asset management business.

The pension scheme’s decision to move to Fidelity comes as the sale of HSBC Life awaits regulatory approval.

In other news, the UK government has announced further changes to the treatment of DC savings in the tax system.

Under the banner of the government’s flagship pension reforms announced in this year’s Budget, chancellor George Osborne scrapped the 55% tax charge of DC pensions after the death of the member.

Under the old system, a 55% charge was made when a member left their DC pot as a lump-sum, or when it was already in drawdown, or left untouched and the deceased member was over 74.

However, under the reform from April 2015, anyone who dies under the age of 75 can pass on DC savings completely tax free, as long as it has not been converted into an annuity.

Those over 75 can pass on DC savings tax free when in drawdown, but will still face a 45% charge for a lump-sum.