With effect on and from 1 October 2020, the Scheme is comprised of two Sections, Section A and Section B:
Section A is sponsored by the commercial businesses which are not regulated by Ofgem.
Section B is sponsored by National Grid’s Gas Transmission business.
The sections are ring-fenced from each other, with completely separate assets and liabilities. Each section has its own assets, financial support and security arrangements.
The Trustee Board is responsible for the whole Scheme.
The transfer of assets and liabilities from Section C to the new Cadent Gas Pension Scheme on and from 1 October 2020
The Scheme was initially restructured into three sections (A, B, and C) in January 2017 as a result of the sale of a majority stake in the Gas Distribution business to Cadent Gas Limited – Section C, sponsored by Cadent (formerly National Grid Gas Distribution).
In June 2019, National Grid sold its remaining stake in the gas distribution business to Cadent. As part of the sale it was agreed that Cadent would put in place its own pension scheme with the intention of transferring the assets and liabilities of Section C into this new scheme.
The proposed transfer required the agreement of the NGUKPS Trustee Board who needed to be satisfied that overall, the security of members’ benefits would not be diminished by the transfer, including no changes to members’ accrued benefits, spouse benefits, death benefits or the way members’ pensions increase.
The Transfer to the CGPS took place on 30 September 2020 and from 1 October 2020, members of Section C became members of the CGPS.
Like the National Grid UK Pension Scheme, the Cadent Gas Pension Scheme is a defined benefit pension scheme run by the CGPS Board of Trustees. They have a legal obligation to administer the scheme in accordance with its trust deed and rules, and all relevant laws and fiduciary duties, and act in the best financial interests of its beneficiaries.
For more information on the CGPS, please visit their website.
Sectionalisation archive
The Scheme sectionalisation archive includes letters and videos produced by the Trustees when the changes were being made in 2016.
This was updated in 2020 to reflect the information issued to members to explain the transfer of the assets and liabilities of Section C, to the Cadent Gas Pension Scheme.
A list of the documents that were issued to members to communicate the changes at the time, is set out below. We’ve included everything to provide context.
Key dates
June 2016: The NGUKPS Trustee wrote to you to confirm their agreement with National Grid to create three separate and independent sections within the Scheme.
November 2016: The NGUKPS Trustees wrote to you to confirm which section your pension benefits had been allocated to.
December 2016: The NGUKPS Trustees wrote to members with benefits allocated to Section C to confirm the buyer of a majority stake in the Gas Distribution business.
April 2017: The NGUKPS Trustees wrote to you to confirm the Scheme was restructured into the three sections, and that your pension benefits remain just as secure and well supported. There were no changes to your accrued benefits as a result of sectionalistion, including no change to spouse benefits, death benefits or the way your pension increases.
June 2019: The NGUKPS Trustees wrote to you to explain that National Grid had sold its remaining stake in the gas distribution business to Cadent, and that as part of this agreement, Cadent would be putting in place their own pension scheme with the intention to transfer the assets and liabilities of Section C into the new scheme.
August 2020: The NGUKPS Trustees wrote to Section C members to give formal notice that the bulk transfer of Section C to the new Cadent Gas Pension Scheme (CGPS) would take place on or around 30 September 2020.
30 September 2020: Section C members transferred to the CGPS. Like the NGUKPS, the CGPS is a defined benefit pension scheme which is run by a Board of Trustees who have a legal obligation to administer the scheme in accordance with its trust deed and rules, all relevant laws and fiduciary duties, including acting in the best financial interests of its beneficiaries. For more information on the CGPS please visit their website.
Archive
Initial announcement – June 2016 letters
- Letter to active members still employed by National Grid
- Letter to deferred members
- Letter to pensioner members
Section allocation, funding and security – November 2016
Section A
Letter confirming allocation
Section A’s funding and security plan booklet
Section B
Letter confirming allocation
Section B’s funding and security plan booklet
Section C
Letter confirming allocation
Section C’s funding and security plan booklet
The following videos explain how pensions are funded under sectionalisation, and how members were allocated across sections. Click on the images below to view these.
