Tax
In connection with the withdrawal of your LD savings, LD Pensions is required to deduct tax payable to the state. The tax amounts to approximately 39.5 per cent of the balance in your LD account, as it is calculated as 25 per cent of the balance as at 31 December 1979 plus 40 per cent of the amount that has been credited to your account since then. From April 2015, it is possible to obtain a reduction in the tax payable to the state from approximately 39.5 per cent to approximately 37 per cent.
You do not need to report anything to the Danish Tax Agency, and the amount paid out after tax relief is not taxable.
Tax relief and lower tax
From April 2015, members who are eligible for a payout can obtain tax relief by paying a lower amount of tax to the state. You can obtain this tax relief by allowing LD Pensions to convert your LD savings into an LD-age savings account, which can later be withdrawn tax-free, provided that tax has already been paid to the Danish Tax Agency prior to withdrawal. The tax relief will also apply at the time of withdrawal if you are entitled to it. Read more about the tax relief here.
Return
Returns are allocated to members’ accounts based on their individual share in the pools and the LD rate applicable on the day. The LD rates are updated on Danish banking days and are calculated on the basis of market value, taking into account the valuation of assets, liabilities, income and expenses in the individual pools.
Statement of account
When you request the payment of your savings, LD Pensions will calculate the final value of your account. The account cannot be settled before the date on which you are entitled to receive the payment, even if you requested the payment well in advance.
If you are already eligible for a payout and request one, LD Pensions will settle the value of the account four Danish banking days after we have registered and validated your payout request. However, the processing time may be slightly longer than usual around public holidays and at the turn of the year. When settling the account, LD will deduct tax from the return and any administrative charges. You will receive a statement of account from LD Pensions showing the final amount transferred.
Delays, etc.
During public holidays and at the end of the year, the payment of benefits and transfers to another pension scheme may take longer than usual. In exceptional circumstances, technical or administrative issues may result in prolonged processing times or delays in the issuance of account statements and transfers. No compensation will be paid for lost interest or lost returns to members affected by such delays.
If the LD rate for one or more pools cannot be updated, the most recent recorded LD rate will be used instead. However, LD rates that are subject to error in relation to the measurement and recognition of assets, etc., will not be used.
