Pace is the pension arrangement for Co-op employees. There are two sections, Pace DC and Pace Complete.
Before October 2015, Pace DC was known as Pace Essential (for those members contributing 1%) or Pace Extra (for those members contributing 4%).
If you were building up benefits in Pace Complete at 29 October 2015, you will no longer build up benefits in Pace Complete after that date. Instead you will be a member of Pace DC (unless you opt out).
Pace DC is the defined contribution section of Pace. Defined Contribution (DC) is a type of pension arrangement where the pension you receive at retirement is based on the contributions paid into your account and investment returns. At retirement, you use your account to provide an income or a lump sum.
You can join Pace DC it as soon as you start employment with the Co-op. If you meet certain conditions to do with your age and the amount you earn, you may be automatically enrolled into Pace DC to encourage you to save more for your retirement. This is a law that the Government has introduced.
If you are automatically enrolled into Pace, you will be enrolled into Pace DC.
The contribution rate is 1% of your Pay and the Co-op will contribute 2%. All contributions are paid into your account, which is invested with the aim of increasing its value. You then use the value of your account to provide an income or lump sum when you retire. Pace DC is administered by Legal & General www.legalandgeneral.com/coop.
You can join Pace DC at any time even if you don’t meet the automatic enrolment criteria.
Watch the video 'How Pace DC works' to learn more.