Pensions payable from the National Grid UK Pension Scheme are reviewed in April each year and increased in line with the percentage increase in the Retail Prices Index (RPI) for the 12 months up to the previous September.
This year the main annual pensions increase will be 1.1%, which is in line with the increase in the RPI for the 12 months up to September 2020. This will be applied with effect from Monday 12 April 2021.
If you are a man under age 65, or a woman under age 60 at the increase date, your whole pension will be increased by this amount and you will receive details in your April payslip.
However, if you are a man over age 65, or a woman over age 60, your National Grid pension is likely to include what’s known as a Guaranteed Minimum Pension or GMP. Different increases apply to the GMP part of your pension and depending on when you reached or will reach State Pension Age, some increases to your Scheme pension may be paid by the State.
A new investment for managing risk within the Scheme - December 2020
You may have seen an announcement in the press recently that we have purchased an insurance policy from Rothesay Life plc (Rothesay) in respect of Section A. This investment is known in pension terms as a ‘buy-in’ and is part of the Scheme’s investment strategy.
A buy-in is a prudent way of managing risk within the Scheme. The Trustees have used some of the existing assets of the Scheme to buy a policy from Rothesay, which provides future income for the Scheme. This kind of insurance policy is increasingly common for many schemes, especially for schemes as well funded as ours. A similar buy-in arrangement was completed last year with Rothesay in respect of Section A.
How does it work?
As with the previous buy-in, the insurer will make payments to the Scheme which broadly reflect the pensions being paid to a sub-section of members within Section A. Effectively it provides the Section with an income that will match its payments to these members even if members live longer than we have allowed for in our current funding projections.
How does this affect me?
Please be assured that this doesn’t in any way affect any member’s pension entitlement - whether you’re a member of Section A, or Section B, there is no change to the way your pension is calculated or paid as a result of this investment.
The Scheme is still responsible for paying your pension. If you’re retired, your pension payments will continue to be paid in exactly the same way as they are now – normally on the 15th of each month through UK Pensions Operations’ payroll team.
A full Q&A on this topic appears on the website with key points further explained. If having read the Q&A you have any other questions, please contact UK Pensions Operations at: email@example.com
This information is specifically provided for anyone with benefits in Section C of the National Grid UK Pension Scheme (NGUKPS) as at August 2020.
If you don’t have benefits within Section C, it does not apply to you.
The transfer of Section C to Cadent has no impact on anyone’s benefits in Section A or Section B of the NGUKPS.
What do I need to know?
The bulk transfer from Section C of the NGUKPS to the new ‘Cadent Gas Pension Scheme’ (CGPS) is expected to take place on or around 30 September 2020.
A notice letter confirming that the bulk transfer will take place was issued from the NGUKPS Trustees to all Section C members’ home addresses on 20 August 2020.
The key things you need to know:
If you have any further questions regarding the transfer, please click here.
My Online Services is our online member portal and has proved very successful in providing our members with an uninterrupted and efficient service during the COVID-19 pandemic.
Members have been using My Online Services to gain immediate access to their pension documents and information without relying on the post, and to carry out transactions securely such as registering their dependants, changing their bank or address details and uploading documents for the pensions team to see.
In April this year, the Trustees moved pension information online for active and deferred members (with the option to stay with paper if they wished) and we have recently written to pensioners under age 70, explaining that their information will also be moved online from September, again with the option to stay with paper if preferred.
If you receive our letter, please make sure you read it thoroughly as it explains the action you will need to take before we move your communications online. To register for My Online Services, click here; or for further information click here.
Please note: If you are a pensioner age 70 and over - you will continue to receive communications in the post until further notice If you would like to receive communications electronically, and access information online, you can register for My Online Services at any time.
My Online Services, our online member portal, has proved extremely useful when communicating with you during the current Covid-19 pandemic. We’re pleased to see more and more members are registering to use the secure service to view their pension documents and update their pension records. It’s efficient, sustainable, and environmentally friendly.
Whenever you are transacting online, whether this is doing the weekly shop, your personal banking, paying bills, or accessing your pension records through My Online Services, it’s important that you keep your account details safe and secure. This includes your username and password, and any responses you’ve set up to security questions you’re required to answer to login to secure sites.
There is some good practice you should follow to help keep your information secure online. Watch our video to help you: How to keep your pension details safe and follow the steps below to keep you and your data safe.
For the latest information on the pensions team services during the pandemic including keeping your account secure, see our member Q&A document.
National Grid cyber security is robust due to the critical nature of its business; and UK Pensions Operations is certified by the BSi in relation to its information security. The security of the data we hold is continually monitored, assessed and reviewed as the threat to cyber security continues to evolve.