In connection with the forthcoming Holiday Entitlement Act, which comes into force on 1 September 2020, it has been decided that the employees' holiday allowance accrued during the transitional year leading up to the new Act is to be managed by a fund for which LD will have overall responsibility. The fund’s official name is the Employees’ Holiday Allowance Fund. It is commonly referred to as the Holiday Allowance Fund.
With the new fund, LD will in future manage two separate funds: the Holiday Allowance Fund and Dyrtidsfonden. In connection with this, LD is changing its name to LD Pensions and will also be introducing a new, updated logo.
Caters for both employees and employers
The new fund will secure employees’ holiday allowance and enable 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.
Dorrit Vanglo, Director in LD Pensions, says:
“With The Holiday Allowance Fund, we are now taking on responsibility for a new fund – oddly enough, almost exactly forty years after LD was founded. The Holiday Allowance Fund is very similar to what we already know and work with, so we look forward to continuing our strong track record, now with two funds in our portfolio.”
About The Holiday Allowance Fund
- To manage and administer the employees' holiday allowance accrued during the transitional year leading up to the new Holiday Act, it has been decided to establish the Holiday Allowance Fund. The administration is carried out with the assistance of ATP, but overall responsibility lies with LD.
- The Holiday Allowance Fund is expected to have a balance of DKK 100 billion.
On The Cost-of-Living Allowance Fund
- Dyrtidsfonden manages assets of 39 billion Danish kroner on behalf of 600,000 members. For an employee who was in full-time employment during the period 1977–79, a sum of just over 4,000 kr was paid into the fund. This amount has now grown to over DKK 145,000 (after tax, DKK 92,000).
- The money is paid out as a lump sum when the member so wishes, provided that the member has reached the age of 60 or is otherwise eligible for payment.
About LD and LD Pensions
- LD has managed the assets of Dyrtidsfonden since 1980.
- Now, some 40 years later, LD Pensions is taking on responsibility for a new fund with assets of DKK 100 billion. Once again, the task is to safeguard employees’ funds whilst capitalising on the significant investment advantages offered by managing pooled assets.
About the new Holiday Act
- When the new holiday legislation comes into force on 1 September 2020, employees will have accrued holiday entitlement under both the old and the new rules and will therefore, in principle, be entitled to double the amount of holiday entitlement in a single year. As this is not in the interests of the labour supply, the economy or employers’ liquidity, it has been decided to allow The Holiday Allowance Fund to manage the holiday allowances accrued under the old rules during the period from 1 September 2019 to 31 August 2020, until they can be paid out – typically upon reaching state pension age
Read all LD’s news articles about the employees' holiday allowance fund
