Your return is calculated once a month. When you receive payouts, it is therefore the date on which your savings are calculated that determines the period for which you receive a return. For example, the return for May will not be credited to your savings until the third banking day in June.
Your return depends on market performance and may therefore be either negative or positive when calculated on a monthly basis.
Everyone receives the same return as a percentage. There is no option to manage your own investments, such as through portfolio selection or similar.
Where do your returns come from?
Your return consists of both LD Pensions’ investment return on the holiday allowance funds that employers have paid into the fund, and interest income on the holiday allowance funds that employers leave within their companies. This makes up the fund’s profit, from which you receive your share.
A large proportion of the holiday allowance funds remain with employers, and this is a secure investment. Employers pay an indexation in line with general wage trends to keep the funds within their organisations, and this indexation contributes positively to your return. The remaining holiday allowance funds have been paid into the fund either from FerieKonto and holiday funds or directly from employers. LD Pensions has used part of the funds to make repayments on the government loan that financed the early payouts of holiday allowance funds. Furthermore, part of the payments has been invested, contributing positively to the current return.
LD Pensions pays standard pension return tax on investment returns, but the portion derived from interest income paid by employers is tax-free. This means that no pension return tax is payable on this portion. The stated return is a net return after costs and pension return tax. The costs are broken down as follows: investment costs are deducted from the return, whilst administrative costs are paid by employers.
It makes no difference to you whether your employer chooses to pay the holiday allowance funds into our scheme or keep them within the company. All savings grow at the same rate, based on a combination of investment returns and interest income.
