In relation to disbursement of your LD savings, LD Pensions must deduct tax to the state. The tax amounts to approximately 39.5 per cent of the balance in your LD account as it is calculated as 25 per cent of the balance as per 3 December 1979 plus 40 per cent of the amount, which has been attributed to your account since then. From April 2015, it is possible to obtain a tax relief of tax to the state from approximately 39.5 per cent to approximately 37 per cent.
You do not have to report anything to Skat, and the amount disbursed after tax relief is not taxable.
Tax relief and lower tax
From April 2015, members, who are disbursement eligible, can obtain tax relief by paying a lower tax to the state. It is possible to obtain the tax relief by letting LD Pensions convert your LD savings to an LD-age savings account, which later on may be disbursed without taxation, if the tax already has been paid to Skat before disbursement. The tax relief will also come into effect in connection with disbursement if you are entitled to the tax relief. Read more about the tax relief here.
Return is attributed to the member accounts based on the members' individual share in the pools and the “on the day” applicable LD-rate. The LD-rates are updated on Danish banking days and is provided based on market value, factoring in and measurement of assets, liabilities, income and expenses in the individual pools.
Statement of account
When you request disbursement of your savings, LD Pensions will calculate the final value of your account. Settling the account cannot take place before the day you are entitled to disbursement, no matter whether you have requested disbursement long before.
If you already are disbursement eligible and request disbursement, LD Pensions will settle the value of the account 4 Danish banking days after, we have registered and validated your disbursement request. However, the processing time might be a bit longer than usual in relation to holidays and at the turn of the year. When settling the account LD will deduct tax from the return and the administration expenses. You will receive a statement of account from LD Pensions, which shows the final transferred amount.
During holidays and year-end, disbursement and transfer to another pension scheme may take longer than usual. Exceptionally, technical or administrative matters may result in prolonged case handling or delayed statements of account and transfers. There will be no compensation for lost interest days or lost return for members affected by such delays.
In case a LD-rate in one or more pools cannot be updated, then the latest recorded LD-rate will be used instead. However, LD-rates, which are subject to error in relation to measurement and recognition of assets etc., will not be used.