National Grid has won its appeal in the UK's House of Lords over who owns the surplus in the £2bn Electricity Supply Pension Scheme (ESPS).
In a unanimous verdict the Lords ruled that they would allow the National Grid appeal against an earlier Court of Appeal decision that found in favour of the members of the ESPS. The Court of Appeal ruled that the surplus was not the property of the National Grid and was in fact owned by the employees backing the Pension's Ombudsman's original decision.Today’s House of Lords ruling however turns this decision on its head.
Members of the ESPS have spearheaded an action against the energy group since 1995. The surplus of the ESPS final salary scheme was valued in 1998 at £94.5m. Many of the 25 pensions schemes which come under the National Grid umbrella admitted that they faced huge payouts if they had lost the appeal.
(more analysis will follow)
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