Proposed Changes to PACE Pension Scheme
Members will now have received a newsletter from the Co-operative Group summarising proposed changes to the PACE Pension scheme.
In 2011 the Co-operative Group sought to increase employee contributions to theDefined Benefit (DB) scheme from 6% to 8%. Whilst NACO recognised that this would impact on member's family budgets, we broadly supported the changes in order to ensure that the business continued to provide a DB scheme for all eligible colleagues. You will note from this week's newsletter that the Co-operative Group is now proposing to close the defined benefit scheme - Pace Complete.
The Group's proposals can be summarised as below:
- Close Pace Complete, the Co-operative Group's defined benefit (DB) scheme.
- Move to defined contribution (DC) pension options for all colleagues for future service.
- Provide 5 DC contribution rates, with a maximum Group contribution rate of 10% of salary (requiring an employee contribution rate of 5% of salary).
Your individual financial circumstances will dictate the impact of any proposed changes. Further details of the Group's proposals are available to members via a Group-provided website: www.pensionconsultation.coop
NACO is in consultation with the business regarding these proposed changes and met most recently today at 3pm. We will continue to meet with the business during the consultation period (28 May - 31 July 2015) and seek to represent your views.
In order for NACO to understand the views of membership, please take the time toprovide us with your feedback on the pension proposals.
NACO is committed to maintaining good communication with members and will provide regular email updates during the consultation process.
If you would like to speak with a NACO Official on any issue, please contact the NACO National office.