Latest bulk annuity deal covers over 6,000 pensioner members from Section B of the Scheme


Legal & General announces £1.6 billion buy-in with the National Grid UK Pension Scheme. Photo: courtesy of Legal & General Group Plc.

Legal & General Assurance Society Limited (“Legal & General”) today announces that it has written a pension risk transfer (“PRT”) transaction of £1.6 billion with the National Grid UK Pension Scheme (“NGUKPS”).

The buy-in policy is in respect of Section B of the NGUKPS. The NGUKPS is a £20 billion defined benefit pension scheme primarily for previous employees of the gas industry.

This buy-in will further protect the future funding of the Scheme by reducing the potential impact of changes in life expectancy and by removing financial risks such as interest rate and inflation changes.

Donald Simpson, Trustee and Chair of the Funding and Investment Committee, National Grid UK Pension Scheme, said:

“We are pleased to take another step in our de-risking journey. All parties have worked collaboratively to reach this positive outcome, which further protects the security of our members’ benefits.”

Laura Mason, CEO, Legal & General Retirement Institutional, said:

“We are delighted to have been able to work with the Trustees to complete this transaction. 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 members.”

Andy Agg, CFO, National Grid plc, said:

“This represents a further step in our long-term pensions strategy, and reduces the exposure to long-term pensions risks for National Grid and gas consumers.”

Martin Bird, Senior Partner, Aon, said:

“We are proud to continue supporting the Trustees and National Grid in navigating through a busy bulk annuity market. This transaction further underlines the importance of having a robust Trustee decision-making framework and ability to move quickly when opportunities arise.”

Source: Company Press Release