One group comprising the cost-of-living allowance and another comprising the holiday allowance. Both are, by law, characterised by the fact that it is not possible to invest additional funds.
Members of the Holiday Allowance Fund
In 2018, LD Pensions was appointed, by Act No. 58 of 30 January 2018 on the management and administration of holiday entitlements, as manager of the Holiday Allowance Fund, which constitutes a separate financial unit within LD Pensions. The funds derive from accrued holiday entitlements. The funds belong to the employees who have accrued holiday allowance from 1 September 2019 to 31 August 2020. After 31 August 2020, there will be no new members joining the scheme, and existing members will not be able to contribute further funds.
Total number of members
More than 3 million employees were registered with the Holiday Allowance Fund. The early disbursements in autumn 2020 and spring 2021 meant that more than 2.3 million employees withdrew up to five weeks’ holiday allowance from the fund, leaving approximately 900,000 employees in the Holiday Allowance Fund. Their holiday allowance will be administered and managed by LD Pensions.
Management will be carried out through a coordinated operation with the assets in the Cost-of-Living Allowance Fund for approximately 500,000 employees. LD Pensions will manage accounts for approximately 1.4 million employees.
