In early 2018, a new holiday entitlement law was passed by the Danish Parliament. This meant that LD Pensions was faced with a major new task. It was also decided that the employees' holiday allowance funds accrued during the transitional year to the new Act would be converted into savings to be managed by a new fund, for which LD Pensions has overall responsibility. The fund’s official name is the Employees’ Holiday Allowance Fund. Colloquially, it is known as the Employees' Holiday Allowance Fund.
The new fund, The Holiday Allowance Fund, is a separate financial entity in LD Pensions. This means that LD Pensions now has two funds – the original frozen cost-of-living allowance funds and The Holiday Allowance Fund – under the same legal entity.
One fortune – two trusts
At the start of 2024, LD Pensions manages assets totalling DKK 46.5 billion, comprising both accrued cost-of-living allowance funds and holiday allowance funds that members have left in their pension savings accounts for later payouts.Â
Long-term asset growth is determined both by LD Pensions’ performance and by the payouts made to members.
About the new fund, The Holiday Allowance Fund
The Holiday Allowance Fund scheme will secure employees' holiday allowance whilst enabling employers to retain these funds for as long as necessary – though payouts must be made no later than when the employees reach retirement age.
Overall responsibility for the Holiday Allowance Fund lies with LD Pensions. ATP will assist with the day-to-day administration, including collecting contributions from employers and making payouts to employees.
