Gas distributor Northern Gas Networks (NGN) has completed a £385 million pensions buy-in transaction with Legal and General.
The arrangement will secure the defined benefit (DB) pension benefits of 600 retired members of the Northern Gas Networks Pension Scheme, removing their investment and longevity risks from the scheme. Members will not see any change in the amount of their benefits or how these are paid following the transaction.
The transaction covers around two thirds of the scheme’s members. Due to the current climate, the trustee and NGN were able to take advantage of market conditions to establish a buy-in deal.
David Waite, finance director for NGN, said: “This transaction demonstrates the initiatives and efforts which continue to be undertaken by NGN to manage our commitment to the scheme, balancing the interests of our customers, shareholders and scheme members.”