In connection with the forthcoming Annual Leave Act, which comes into force on 1 September 2020, it was decided that the holiday allowance funds which employees accrue during the transitional year to the new Act, are to be managed in a fund for which LD has been given overall responsibility. The fund’s official name is The Holiday Allowance Fund. Commonly referred to as the Holiday Allowance Fund.
With the new fund, LD now manages two separate funds: the Employees' Holiday Allowance Fund and Dyrtidsfonden. In connection with this, LD has changed its name to LD Pensions.
Caters for both employees and employers
The new fund meets the needs of both employees and employers: it will secure employees’ holiday allowance whilst enabling employers to retain the funds for as long as necessary – but no later than the employee’s retirement age.
Both funds under LD Pensions aim to grow their assets as much as possible, thereby creating a supplementary savings pot that can be paid out when the employee leaves the labour market.
LD Pensions is well equipped for the task
For the youngest cohorts, holiday allowance funds may be frozen for more than 50 years. It is therefore important that the money earns interest over this long period. LD Pensions is well equipped to take on the task of managing employees’ frozen funds. Back in 1980, LD Pensions also received frozen funds from employees, which have been earning interest ever since through The Cost-of-Living Allowance Fund.
