How Pace DB works
Pace is made up of different sections. Pace DB is the defined benefit (DB) section (now closed) and Pace DC is the defined contribution section, which is open to all Co-op colleagues.
Pace DB was set up in 2006, when three Co-op schemes merged: CIS Employees’ Pension Scheme, The Co-operative Bank Pension Scheme and Co-operative Group (CWS) Limited Pension Scheme, and changed from being a ‘final salary’ DB scheme to a career average revalued earnings ‘CARE’ scheme. So, it’s possible you’ve built up different types of pension in Pace DB, depending on when you joined.
This section explains in more detail how your pension in Pace DB is calculated.
For each Scheme year (or part year) that you paid into Pace DB, you earned a block of pension equal to 1.67% (or 1/60th) of your Pay received in that year, payable at age 65. Your pension at age 65 is the total of all the blocks of pension you built up, plus annual inflationary increases.
Full details of the benefits offered by Pace DB can be found in the Pace DB pension guide.