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National Grid Pension Plan
The National Grid Pension Plan encompasses the defined benefit and 401(k) retirement programs sponsored by National Grid plc for its UK and US workforces.
National Grid Pension Plan
The National Grid Pension Plan encompasses the defined benefit and 401(k) retirement programs sponsored by National Grid plc for its UK and US workforces. In the US, administration sits with the National Grid Electricity Group (NGEG) in Hicksville, New York, where the plan serves employees of the utility's downstream electric and gas operations. The UK scheme operates under its own trustee board, chaired by Chris Martin, and manages legacy and active member benefits tied to the transmission and distribution workforce. Asset allocation favors the kind of long-dated, inflation-linked cash flows that match utility pension liabilities. The UK scheme holds a directly owned portfolio of commercial and industrial property across St Albans, Cardiff, and broader UK industrial estates. In a transaction that closely couples the plan's assets with its sponsor's core business, the pension partnered with Macquarie Asset Management in the consortium that acquired a majority stake in National Grid Gas. Beyond physical assets, the plan executed a longevity swap with Zurich to hedge against pensioner lifespan risk, a liability-driven investment technique common among large UK corporate schemes. Both the UK and US arms maintain signatory status with the UN Principles for Responsible Investment since at least 2023, and participate in climate-focused networks including IIGCC and the Paris Aligned Investment Initiative. The UK Trustee board also holds membership in the Association of Member Nominated Trustees, reinforcing a governance structure where beneficiary representatives sit alongside professional fiduciaries on the investment committee. Public asset and deployment totals are not disclosed. The plan's structural differentiator is the overlap between its sponsor and its portfolio: the scheme holds debt or equity in the very regulated network companies that generate the sponsor's revenues. This creates an unusual alignment — and concentration risk — where the pension's funded status is tied to the same regulated cash flows that pay employee salaries. The longevity swap further hardwires the plan to insurance counterparty risk managed through Zurich.
General information
Firm type
Pension Fund
Year founded
1943
Location
Region
North America
Country
United States
City
Hicksville
Corporate office
Hicksville, NY, United States
Principals
Stephen Yandle
Chair of the Group Trustee, National Grid Electricity Group (NGEG)
Chris Martin
Chair of the Trustee Board, National Grid UK Pension Scheme
Sector focus
Frequently asked questions
Who runs investment decisions at the National Grid Pension Plan?
The UK and US plans operate under separate trustee governance. Stephen Yandle chairs the Group Trustee for the US-based National Grid Electricity Group, and Chris Martin chairs the Trustee Board for the UK Pension Scheme. Each board delegates to investment committees whose members include company-appointed and member-nominated trustees, as reflected in the UK scheme's membership in the Association of Member Nominated Trustees.
How is the National Grid pension's portfolio connected to its sponsor's business?
The connection is unusually direct. The UK pension scheme partnered with Macquarie Asset Management in a consortium that acquired a majority stake in National Grid Gas, the regulated transmission business that generates a significant portion of National Grid plc's revenue. This means the pension's assets are substantially exposed to the same regulated entity that funds the plan through employer contributions.
Does the National Grid Pension Plan invest directly in real assets or through funds?
Both. The UK scheme holds directly owned commercial and industrial real estate, including retail parks in St Albans, office space in Cardiff, and a portfolio of UK industrial estates. It also participates in large-scale infrastructure co-investments alongside third-party managers such as Macquarie, rather than solely committing through blind-pool fund structures.
What is a longevity swap, and why did National Grid's pension execute one?
A longevity swap is a reinsurance transaction where a pension plan transfers the risk of pensioners living longer than expected to an insurer, in exchange for fixed premium payments. The National Grid UK scheme executed a longevity swap with Zurich to reduce balance-sheet exposure to lifespan risk, a liability-management technique common among UK corporate defined benefit plans seeking to de-risk as they mature.
What is the governance structure separating the US and UK plans?
The US plan is administered by the National Grid Electricity Group, headquartered in Hicksville, New York, and governed by its own Group Trustee board. The UK scheme operates under a separate Trustee Board governed by UK pension law and the Pensions Regulator. Each board has autonomous fiduciary responsibility, though both ultimately serve employees of National Grid plc and participate in shared responsible-investment initiatives like UNPRI and the Paris Aligned Investment Initiative.
Is the plan a signatory to the UN Principles for Responsible Investment?
Yes. The National Grid Pension Plan has been a UNPRI signatory since at least 2023. It is also a member of the Institutional Investors Group on Climate Change and the Paris Aligned Investment Initiative, signaling an investment strategy that incorporates climate and ESG factors into portfolio construction and stewardship.
What role does Macquarie play in the pension's infrastructure exposure?
Macquarie Asset Management is the pension plan's co-investor in the consortium that acquired a majority stake in National Grid Gas. The pension plan did not lead the deal but participated alongside Macquarie, gaining direct exposure to a core UK infrastructure asset tightly linked to its sponsor.
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