On the go: The National Grid UK Pension Scheme has completed a £1.6bn buy-in with Legal & General Assurance Society.
The pension risk transfer transaction, which covers Section B of the pension fund, will further protect the future funding of the scheme. It will reduce the potential impact of changes in life expectancy and remove financial risks such as interest rate and inflation changes, the parties announced in a statement.
The National Grid UK Pension Scheme has £20bn in assets under management and 100,000 members – mostly from the organisation’s gas transmission and distribution businesses – and is closed to new entrants.
Donald Simpson, trustee and chairman of the scheme’s funding and investment committee, noted that this is another step in National Grid’s derisking journey.
“All parties have worked collaboratively to reach this positive outcome, which further protects the security of our members’ benefits,” he said.
Laura Mason, chief executive of Legal & General Retirement Institutional, said: “We were pleased to have been able to leverage our existing asset management mandate with the scheme to ensure a smooth process, and provide further security to the scheme’s members.”
The trustees were advised by Aon and supported by the scheme’s in-house team. Sackers provided legal advice, with actuarial support provided by Willis Towers Watson. L&G was advised by Macfarlanes.
