Following the introduction of the new Danish Holidays Act and the establishment of the Holiday Allowance Fund, LD Pensions now manages two separate funds – the Cost-of-Living Allowance Fund and the Holiday Allowance Fund.
In connection with the Holidays Act, which came into force on 1 September 2020, it was decided that the holiday allowance accrued by employees during the transition year and until the new Act came into force would be managed in a fund for which LD Pensions has overall responsibility. The fund’s official name is Lønmodtagernes Fond for Tilgodehavende Feriemidler (the Employees’ Fund for Holiday Allowances). In everyday language: the Holiday Allowance Fund.
LD Pensions has managed the assets in the Cost-of-Living Allowance since 1980.
About the Holiday Allowance Fund
- To manage and administer the holiday allowance that employees accrued during the transition year until the Holidays Act came into force, it was decided to establish the Holiday Allowance Fund. LD Pensions manages the administration with the assistance of ATP, but overall responsibility lies with LD Pensions.
- During the transition year, holiday allowance totalling DKK 108 billion was reported to the Holiday Allowance Fund.
- In autumn 2020 and spring 2021, the need for financial support during the COVID-19 crisis secured a political majority in favour of paying out a maximum of five weeks’ holiday allowance upon request. DKK 88 billion was paid out.
- The Holiday Allowance Fund currently manages DKK 20 billion on behalf of approximately 674,000 members.Â
About the Cost-of-Living Allowance Fund
- The Cost-of-Living Allowance Fund manages DKK 26 billion on behalf of approximately 435,000 members. For a full-time employee who was employed between 1977 and 1979, approximately DKK 4,000 was paid into an LD account. Over the years, this amount has grown to more than DKK 154,360 (DKK 97,248 after tax).
- The money is paid out as a lump sum upon request by the member, if the member is aged 60 or is otherwise entitled to a payout.
