About the National Grid UK Pension Scheme

The National Grid UK Pension Scheme (the Scheme) is a defined benefit (DB) scheme. As an active member you pay 5% of your capped pensionable salary into the Scheme. Employers participating in the Scheme must pay at least 5% of capped salary (to match members' standard contributions), and may have to pay substantially more.

When you retire, your pension will be based on a set formula made up of your pay, your years of service in the Scheme, and a fraction known as an accrual rate (1/60).

If you are an active member, once a year we’ll send you a benefit statement, which gives you an illustration of the pension income you could get if you retire at the normal retirement age of 65, or if you retire earlier at age 60. This is usually posted to your home address in early September each year. A copy can also be viewed on My Online Pension.

When you retire, your pension will be based on a set formula made up of your pay, your years of service and the accrual rate.

Cost

Both you and your employer contribute to your pension every time you’re paid.

Your capped salary is the figure we use to calculate your pension relating to Pensionable Service from 1 April 2013.

You pay 5% of your capped salary*
Your employer will pay the balance of the cost of providing your benefits at retirement.

Your capped salary is the figure we use to calculate your pension relating to Pensionable Service from 1 April 2013.

Tax Relief

Your take home pay might not be reduced by as much as you think. The Government gives you a free bonus because you get Income Tax relief on your contributions.

If you’re eligible for the Company's flexible benefits scheme, YouFlex, you can choose to make your pension contributions through Flexible Pension Savings (FPS), which means you'll also benefit from National Insurance (NI) savings. With FPS, your salary is reduced by an amount equivalent to your contributions, so you pay Income Tax and NI on a lower amount. In return, your employer will pay your contributions on your behalf.

How it's calculated

Laura earns £24,000 a year.

Without FPS

Laura’s monthly Capped Pensionable Salary £2,000
Tax:£182.50
NI:£155.76
5% pension contribution:£100
Take-home pay:£1,561.74

With FPS

Laura’s monthly Capped Pensionable Salary: £1,900
Tax:£182.50
NI:£143.76
5% pension contribution:£100
Take-home pay:£1573.74
£12 a month or £144 a year better off with FPS.

Based on 2018/19 tax year and personal tax allowance.

A small number of members may not benefit from FPS, for example, if you’re over the State Pension Age or you earn less than the Lower Earnings Limit*.

If you’re eligible and take part in FPS then you’ll automatically re-join every December. If you don’t want to re-join, you'll need to deselect the FPS option when you’re asked to renew YouFlex (usually around October/November).

Please note, you can still use your pre-FPS salary when applying for a mortgage or other financial products.

*The Lower Earnings Limit is set by the Government, and is the threshold used to determine if you qualify for certain State benefits and if you need to pay NI contributions.