Your return is calculated once a month. You can check your return at any time here on the website, where you can also, for example, track the current performance and asset allocation of your invested holiday allowance funds. If you’d like to view your ongoing personal returns, you can log in to the self-service portal at borger.dk.
As the ongoing returns are calculated once a month, the date on which your savings are calculated at the time of payouts determines the period for which you receive the returns. For example, the return for May will not be credited to your savings until the third banking day in June.
Your return depends on market performance and may therefore be either negative or positive when calculated on a monthly basis.
Everyone receives the same return as a percentage. There is no option to manage your own investments, such as through portfolio selection or similar.
Where do your returns come from?
The accrued holiday allowance funds were frozen back in 2020. Employers can choose whether to pay the accrued holiday allowance funds into our fund or to retain the funds within their own organisation. Your return therefore consists of both LD Pensions’ investment return on the holiday allowance funds that employers have paid into the fund, and interest income on the holiday allowance funds that employers leave within their companies. This makes up the fund’s profit, from which you receive your share.
The portion of holiday allowance funds held by employers is a safe investment. Employers pay an index-linked adjustment in line with general wage trends to keep the funds within their organisations, and this adjustment contributes positively to your return.
LD Pensions pays standard pension return tax on investment returns, but the portion derived from interest income paid by employers is tax-free. This means that no pension return tax is payable on this portion. The stated return is a net return after costs and pension return tax. The costs are broken down as follows: investment costs are deducted from the return, whilst administrative costs are paid by employers.
It makes no difference to you whether your employer has chosen to pay the Holiday Allowance funds into our scheme or to keep them within the company. All savings grow at the same rate, based on a combination of investment returns and interest income.
