Account An account is your own pension account within Pace DC. It includes the contributions from you and the Co-op, and any investment returns.
This is the rate at which pension builds up in a defined benefit pension scheme. It is a fraction, for example 1/60. In Pace Complete your pension built up each year using your Pay and an accrual rate.
Additional Voluntary Contributions
These are contributions you can choose to make in addition to your standard pension contributions.
Annual management charge
The cost of managing your Pace DC account each year (for current employees: currently 0.13% of the total value of your account; for members who have left the Co-op and whose benefits have been transferred into a policy in their own name: 0.16% of the total value of your account).
In a defined contribution scheme, when you retire you can use the value of your account to buy an annuity from an insurance company. This annuity gives you a guaranteed income for the rest of your life.
Automatic enrolment is the process of putting employees into a workplace pension scheme. Legislation introduced by the government means that all employers must automatically enrol all employees who meet certain criteria into their workplace pension scheme. For the Co-op this is Pace DC.
When referring to death benefits within Pace Complete, a child’s pension is paid to your children, including any legally adopted children or financially dependent stepchildren, who are under the age of 18. The Pace Trustees may allow a child who has reached age 18 to qualify for the benefit if the child is under age 23 and in full-time education or training which is approved by the Pace Trustees.
Co-operative Group Limited. If you want to know whether your employer participates in Pace, please contact the Group Pensions Department.
(DB) (Pace Complete)
This is a type of pension arrangement where your benefit is related to your pay and the length of time you have been in the scheme. Pace Complete is a defined benefit arrangement which closed in October 2015.
(DC) (Pace DC)
This is a type of pension arrangement where your benefit is related to the amount of money you save into your account and investment returns. At retirement you can use the money in your account to provide you with an income or a lump sum. Pace DC is a defined contribution arrangement.
Someone who (in the Trustees’ opinion) is, or was at the time of your death, wholly or partly financially dependent on you.
Drawdown An alternative to cash or annuity as a way of taking your defined contribution (DC) benefits. You can leave your account invested and take money from it instead.
Fund Management Charge
The cost of managing your Pace DC investments each year. It varies between 0.10% and 0.30% of your account, depending on your investment choices.
Normal Pension Age 65
Pace is the pension arrangement for Co-op employees. Pace has two sections – Pace DC, which is the new pension offer for future service from 29 October 2015 and Pace Complete, which closed to the build-up of further benefits from 28 October 2015.
If you are a Co-operative Bank employee please visit www.legalandgeneral.com/coopbank
Your husband, wife, registered civil partner, same sex spouse or any dependant with whom you are in a relationship that the Trustees consider to be similar to marriage for a period of at least six months.
Is your basic pay plus overtime and any other payments that are pensionable, excluding any bonus payments.
For the purpose of working out your death in service benefit, ‘salary’ means either your pay in the 12 months prior to the date of death, or your basic annual salary at the date of death, if higher.
Selected Retirement Age
Pace DC, if you plan to retire at a different age than 65, you can select your own retirement age. This will affect the way your account is invested if you’re invested in one of the Target options, and any retirement benefit illustrations would be based on this age.