UK - National Grid Transco has revealed an £871m FRS17 deficit on its two final salary schemes.
The power company, which was formed from the merger of National Grid and Lattice Group earlier this year, revealed the deficits in its interim results.
These show that the £12bn Lattice Group Pension Scheme had a deficit of £669m and the £1.3bn National Grid Group scheme a deficit of £202m at the end of October.
In March 2002, the Lattice scheme was in surplus by £261m, while the National Grid scheme had a deficit of £36m.
A company spokeswoman said the company was likely to consider increasing its contribution rate to the schemes and/or making a cash contribution.
However, no action will be taken until the results of actuarial valuations – at the Lattice scheme in March 2003 and at the National Grid scheme in March 2004 – are completed.
The spokeswoman added that there were no plans to merge the schemes. The Lattice schemes closed to new members in April 2002, but the National Grid scheme remains open.
She said: “We are having a general review of benefits, terms and conditions as would be expected when you have a merger, but we are not currently recruiting new staff because we are in the process of merging offices.”
The Lattice Group scheme has 15,421 members, 29,572 deferreds and 29,572 pensioners, while the National Grid scheme has 3205 members, 1885 deferreds and 6492 pensioners.
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