How Pace DC works
Pace DC is a savings plan for your retirement.
Both you and the Co-op pay money into your Pace DC account each month. Once you’re a member of Pace DC you can choose to pay more into your account each pay period, or pay in a one-off lump sum when you can afford it, to help build up your pension savings.
This website has lots of information to help you understand how Pace DC works. You can start off by reading the Pace DC factsheet which gives a quick summary of the main features of Pace DC. You can also read the Pace DC pension guide which has more detail on Pace DC and the Pace DC fund guide which contains information on the investment choices in Pace DC.
The Pace DC pension modeller can show you:
- How much it costs to be in Pace DC and how much the Co-op will pay in to help you save
- How much you might get at retirement and what your options are.
How much does it cost to join Pace DC?
When you join Pace DC, you and the Co-op pay contributions into your account. Your contributions are taken out of your Pay each month and you will see these payments appear on your payslip. Your payslip will tell you what contribution rate you are paying if you’re not sure.
You can choose how much you want to pay into Pace DC – the table below shows your options.
You can change your contribution rate whenever you want by filling in the Increase or decrease my contributions form.
| You pay|
(% of Pay)
|The Co-op pays|
(% of Pay)
|Total % paid into your account |
| 1%||2% ||3% |
| 2%||3% ||5% |
| 3%*||5% ||8% |
| 4%|| 8%||12%|
| 5%|| 10%|| 15%|
| 6%|| 10%|| 16%|
| 7%|| 10%|| 17%|
| 8%|| 10%|| 18%|
| 9%|| 10%|| 19%|
| 10%|| 10%|| 20%|
*If you join today, your starting contribution will be 3% of Pay and the Co-op will pay 5% of your Pay. You can change to a different contribution level at any time.
If you don’t think you can afford the minimum contribution, once you are a member you can choose to pay in a lower amount (1% or 2% of Pay), so that at least you’re making some savings for the future.
You can find out more about your contribution options in the Pace DC pension guide. The guide explains how your pension costs less than you might think, thanks to tax relief and NICE Pensions. You can use the Pace DC pension modeller to see how your take-home pay would change, depending on your contribution choices.
What else do I get from Pace DC?
Pace DC gives you more than just money for your retirement. As well as getting extra money from the Co-op paid into your account, you’ll also get free life cover.
If you die before you’re able to take your pension savings, the money in your account will be paid to your beneficiaries (the people you’d like the money from Pace DC to go to when you die). And, if you’re paying into Pace DC, they’ll also get a death-in-service lump sum. The size of the lump sum depends on how much you’re paying into Pace DC:
- 1%–3% of Pay: 1 x Salary (or £5,000 if more)
- 4% or more of Pay: 3 x Salary
Please see the Pace DC pension guide to find out more about the benefits provided on death or serious ill-health.
If you join Pace DC, it’s very important to complete a Nomination form and send it to Legal & General, because this form tells us who you’d like the money from Pace DC to go to.