LD Pensions is the legal entity that manages two separate financial entities – the Cost-of-Living Allowance Fund (The Cost-of-Living Allowance Fund) and the Holiday Allowance Fund (The Holiday Allowance Fund), respectively.
LD Pension has no equity of its own and no shareholders. All assets and investment returns are allocated to the account holders.
The Cost-of-Living Allowance Fund
, in accordance with the LD Pensions Act No. 1109 of 14 October 2014, as amended, the purpose of LD Pensions is to manage and disburse the funds derived from payments of the ‘frozen cost-of-living allowance’ made by the Danish state to LD Pensions.
The funds belong to a small group of members who were employed in Denmark from August 1977 to August 1979. LD Pensions has not received any contributions since 1980.
Consequently, there is no influx of new members, and existing members cannot deposit further funds. Membership is conferred by law.
The Holiday Allowance Fund
: Under Act No. 58 of 30 January 2018 on the management and administration of holiday pay entitlements, LD Pensions was appointed as manager of the Employees’ Holiday Pay Fund. Commonly referred to as the Holiday Allowance Fund (The Employees' Holiday Allowance in Danish).
These funds are derived from accrued holiday pay, which is held in a financial institution. As a rule, the funds will be paid out upon retirement.
The funds belong to the employees who accrued holiday pay between 1 September 2019 and 31 August 2020. After 31 August 2020, there were no new members, and existing members cannot make further contributions.
The members are members by law.
Investment
LD Pensions’ listed assets are predominantly invested in Kapitalforeningen LD, a capital association subject to AIFM regulation and wholly owned by LD Pensions.
LD Pensions’ investment activities are therefore mainly carried out through Kapitalforeningen LD.
Management
Under the LD Pension Act, LD Pension is managed by a board of directors and a chief executive officer.
The Minister for Employment appoints the board of directors. Four members are appointed on the recommendation of the Danish trade unions, and a further three members are appointed directly by the minister.
Further information about the board of directors can be found on our website: https://www.ld.dk/om-ld-pensions/organisation/bestyrelse.
The board of directors appoints the CEO, who is responsible for the day-to-day management of LD Pensions.
LD Pensions falls within the remit of the Ministry of Employment.
Furthermore, the Danish Financial Supervisory Authority (FSA) oversees LD Pensions’ compliance with financial regulations.
LD Pensions falls within the remit of the Parliamentary Ombudsman. LD Pensions is governed by the Public Administration Act and the Public Records Act.
LD Pensions is not subject to anti-money laundering (AML) regulations.
For information regarding audited financial statements (in Danish only), please refer to our website: https://www.ld.dk/english/ld-pensions/annual-reports/
