The National Grid UK Pension Scheme recorded a surplus of £1.28bn as of 30 September 2018, an increase of £172m from 31 March 2018.

In its half-year report, it was revealed that the National Grid Electricity Group of the Electricity Supply Scheme’s surplus also increased during this period, from £73m to £209m.

National Grid’s total DB scheme assets increased from £1.41bn to £1.75bn over the past six months, while its liabilities fell from £1.67bn to £1.42bn.

The primary reason given for the drop in liabilities was movements in discount rates.

The report also said that the surplus at 30 September 2018 “does not reflect any accounting consequences that may be required as a result of guaranteed minimum pension equalisation”.

Furthermore, National Grid’s half-year report commented that the company will be “considering the consequences of the recent Lloyds Banking Group judgment issued by the High Court in the coming months”.

The National Grid UK Pension Scheme is a DB scheme that was closed to most new members from 1 April 2002.

The report also said: “The net pensions and other post-retirement benefit obligations position, as recorded under IAS19, at 30 September 2018 was an asset of £330m compared to a liability of £263m at 31 March 2018.

“The movement of £593m primarily reflects changes in actuarial assumptions resulting in a reduction in liabilities, asset performance being less than the discount rate, and employer contributions paid over the accounting period.”

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