It needs to be remmebered that this is 40 year old technology - much of the design was done in the decade before it was launched, and whilst some equipment has been updated, the majority of it is well passed its use by date to point where catastrophic failure of major components is expected.
Before the components are deorbited, any volotiles, such as chemical, oils or other such materials will be removed and returned to Earth, the empty husk will be broken into contituent parts and then provided with the requisit momentum for a shallow re-entry as this will minimise deorbit energy required and maximise atmospheric friction, increasing the amount of heating and thius ablation of the components, this means less will make it to the surface, and that which does will splash down in the ocean where impact will obliterate it with the remains sinking to the ocean floor.
Pollution is a mimal issue that is being overplaying. Keeping it in orbit or moving it to the Moon is simply not feasible, it is designed to operate with Earth's magnetic field shield, moving it to L2 or the Moon would negate this benefit and it would become a death trap for anyone using it unless they worse an EVA suit continually - not practical.