Order on the Statutes of the Employees' Supplementary Pension Fund

Order on the Statutes of the Employees' Supplementary Pension Fund

Pursuant to Section 4, subsection 7, and Section 7a, subsection 4, of the Act on the Employees' Supplementary Pension Fund, cf. Act Consolidation No. 1109 of 9 October 2014, as amended by Act No. 1531 of 27 December 2014 and Act No. 1569 of 15 December 2015, the following is enacted:

Section 1. The institution's name is Lønmodtagernes Dyrtidsfond. The institution may also use the names LD, LD Fonde, and LD Pensions.

Section 2. Lønmodtagernes Dyrtidsfond is an independent institution established by Act No. 7 of 9 January 1980 on the Employees' Supplementary Pension Fund. Lønmodtagernes Dyrtidsfond has the task of:
1) Managing and paying out the funds derived from contributions to the Labour Market Supplementary Pension pursuant to Act No. 230 of 2 June 1977 on temporary contributions from the state to the Labour Market Supplementary Pension of certain cost-of-living portions (the Cost-of-Living Contribution Act).
2) Handling the contribution, management, and payout of funds in the Employees' Fund for Outstanding Holiday Credits pursuant to the Act on the Management and Administration of Outstanding Holiday Credits.

Subsection 2. The fund's registered office is Copenhagen.

The Board of Directors

Section 3. The Board of Directors consists of 7 members, who are appointed by the Minister for Employment.

Subsection 2. The board members are appointed for 3 years at a time, such that at least 2 members retire each year; re-appointment is possible. The deputy chairman is the substitute for the chairman in the latter's absence.

Subsection 3. The Board of Directors holds meetings at least 4 times a year. The Board keeps minutes of the meetings, including dispensations.

Subsection 4. The Board of Directors is quorate when at least 3 members participate in the meeting, in addition to either the chairman or the deputy chairman.

Subsection 5. The Board of Directors makes decisions by simple majority vote among those represented. In the event of a tie, the chairman's vote, or the deputy chairman's vote if the chairman is not present, is decisive.

Subsection 6. Board members must observe the conflict of interest rules of the Administration Act in connection with their activities in Lønmodtagernes Dyrtidsfond.

Section 4. Lønmodtagernes Dyrtidsfond is represented by the chairman or deputy chairman jointly with a board member or jointly with the executive board. The Board of Directors may grant power of attorney.

Section 5. The Board of Directors may have the chairman and deputy chairman form a chairmanship, to which specific tasks and the competence to make decisions in urgent matters are delegated. The Board must be informed immediately of all decisions made by the chairmanship.

Section 6. The Board of Directors appoints an executive board to manage the daily operations.

Daily Management

Section 7. The executive board manages the daily operations of Lønmodtagernes Dyrtidsfond under the responsibility of the Board of Directors.

Subsection 2. It is the executive board's responsibility to manage Lønmodtagernes Dyrtidsfond prudently and in accordance with the Act on the Employees' Supplementary Pension Fund, the Act on the Management and Administration of Outstanding Holiday Credits, these statutes, the rules of procedure, instructions, and guidelines received by the executive board from the Board of Directors. Dispositions that, given the circumstances of Lønmodtagernes Dyrtidsfond, are of an unusual nature or size, must be submitted by the executive board to the Board of Directors in accordance with the Board's decisions.

Management of Funds

Section 8. It is the Board of Directors' responsibility to ensure that outstanding cost-of-living funds under management pursuant to Section 2, subsection 1, no. 1, are kept separate from outstanding holiday credit funds under management pursuant to Section 2, subsection 1, no. 2, with the aim of ensuring that the interests of the two groups of employees are best served.

Allocation of Results for Cost-of-Living Funds

Section 9. The result of Lønmodtagernes Dyrtidsfond's management of funds pursuant to Section 2, subsection 1, no. 1, is allocated monthly to individual employees' accounts in proportion to their share of the total assets, pursuant to Section 6d of the Act on the Employees' Supplementary Pension Fund, cf. however subsection 3.

Subsection 2. The result from investment funds is allocated pursuant to Section 6d of the Act on the Employees' Supplementary Pension Fund and the Order on Fund Investment in the Employees' Supplementary Pension Fund at each fund selection and monthly to individual employees' accounts in proportion to their share of the respective funds, cf. however subsection 3.

Subsection 3. Upon payout, transfer to another financial institution, or conversion to an LD old-age savings plan, the individual employee's outstanding balance is calculated as the amount with the allocation of the individual's share of the fund's result at the time of payout, transfer, or conversion.

Subsection 4. Written guidelines are drawn up for the allocation of the fund's result and the results of investment funds to individual employees' accounts, including the calculation of returns, costs, and tax for each individual employee. The guidelines must be approved by the fund's Board of Directors.

Subsection 5. Written guidelines are drawn up for the setting of fees etc., which are charged to the individual employee to cover the fund's administrative costs. The guidelines must be approved by the fund's Board of Directors.

Payout of Outstanding Cost-of-Living Funds

Section 10. Upon payout pursuant to Sections 2, 2a, and 3 of the Act on the Employees' Supplementary Pension Fund, Lønmodtagernes Dyrtidsfond calculates the outstanding balance as the amount contributed pursuant to the Cost-of-Living Contribution Act plus what has been allocated pursuant to the Act.

Subsection 2. The amount transferred to the employee or the estate upon payout constitutes the amount calculated in subsection 1, minus tax on pension returns pursuant to the provisions of the Taxation of Pension Returns Act for Lønmodtagernes Dyrtidsfond, duty to the state pursuant to the provisions of the Pension Taxation Act for Lønmodtagernes Dyrtidsfond, and minus costs to cover Lønmodtagernes Dyrtidsfond's management.

Subsection 3. Lønmodtagernes Dyrtidsfond processes the receipt of a payout request as soon as possible, and if the documentation required by the fund is available to show that the payout can take place in accordance with the Act's Section 2 and Section 3, the fund transfers the amount to the entitled recipient no later than 8 weeks after receipt of the payout request. The 8-week deadline may be waived if changed circumstances arise due to the entitled recipient's situation that warrant this.

Subsection 4. Lønmodtagernes Dyrtidsfond may, for employees who have not received their outstanding balance paid out, arrange for the account to be continued as an LD old-age savings plan upon payment of duty to the state pursuant to Section 2a, subsections 1 and 4, of the Act on the Employees' Supplementary Pension Fund. Lønmodtagernes Dyrtidsfond informs the employee of the tax implications of converting to an LD old-age savings plan and ensures the employee has the opportunity to opt out of the conversion to an LD old-age savings plan. The employee has a minimum of 3 months within which the employee can notify Lønmodtagernes Dyrtidsfond that they opt out of the conversion to an LD old-age savings plan.

Subsection 5. Lønmodtagernes Dyrtidsfond must inform employees who have not reacted by no later than one month before the deadline expires, regarding the fund's upcoming conversion of the account, including information about the deadline for opting out of the conversion.

Subsection 6. The Minister for Employment may, upon request from Lønmodtagernes Dyrtidsfond, extend the deadline in subsection 3 for a period when this is done for the benefit of the entire group of entitled employees.

Information Regarding Cost-of-Living Funds

Section 11. Lønmodtagernes Dyrtidsfond must inform employees to a reasonable extent about outstanding amounts, interest, costs, and tax. The information must be provided to each individual employee at least once a year and must be given in writing.

Subsection 2. Decisions, including those regarding payout, conversion to an LD old-age savings plan, or transfer, are communicated in writing to the entitled employee.

Entry into Force

Section 12. This Order enters into force on 1 July 2023.

Subsection 2. Order No. 1913 of 4 October 2021 on the Statutes of the Employees' Supplementary Pension Fund is repealed.

Ministry of Employment, 23 June 2023

Ane Halsboe-Jørgensen
/ Christian Andersen-Mølgaard