Lønmodtagernes Dyrtidsfond

Lønmodtagernes Dyrtidsfond (LD), now operating as LD Fonde, is a Danish statutory pension and investment fund created in 1980 to manage money that the state had frozen from automatic cost-of-living wage adjustments (dyrtidsregulering) between 1976 and 1982. The fund was established following a political settlement between the Danish government and the Danish Confederation of Trade Unions (LO). Its first director was Holger Jensen, chief economist at LO, who was succeeded in 1986 by Poul Nyrup Rasmussen, later Prime Minister of Denmark. Rasmussen transformed LD into an active investment company, improving returns on the frozen capital. Today LD Fonde administers two separate funds: Lønmodtagernes Dyrtidsmidler (the original Dyrtidsfond), which at the end of 2017 had assets of DKK 41.6 billion, and Lønmodtagernes Feriemidler, which manages frozen holiday pay. The Dyrtidsmidler fund belongs to approximately 360,000 members and had assets of DKK 24.3 billion according to the official website. The Feriemidler fund holds DKK 22.4 billion belonging to 645,000 wage earners who chose to leave their frozen holiday pay as savings for later payout. The frozen holiday pay stems from the 2020 holiday law, which required holiday pay earned between September 2019 and August 2020 to be frozen until retirement; LD was appointed to manage these funds and changed its name to LD Fonde. Due to the COVID-19 pandemic, most Danes chose to have their frozen holiday pay paid out in 2020 and 2021, but about one third (900,000 wage earners) left their holiday pay with Lønmodtagernes Feriemidler as an extraordinary tax-favoured pension savings. LD Fonde is headquartered in Copenhagen and operates solely in Denmark. It is an independent fund, not listed on any stock exchange, and is governed by Danish law. The fund emphasizes active ownership, responsible investment, and ESG engagement with portfolio companies. Its website provides current returns, annual reports, and news about its active ownership efforts, including dialogue lists and voting records.

Lønmodtagernes Dyrtidsfond was established in 1980 as part of a political settlement between the Danish government and the Danish Confederation of Trade Unions (LO). The fund was created to manage money that the state had frozen from automatic cost-of-living wage adjustments (dyrtidsregulering) between 1976 and 1982. During the 1970s, inflation had persistently risen despite stagnation—a condition known as stagflation. To address this, the government froze a portion of automatic cost-of-living adjustments from 1976 to 1982, after which the automatic adjustment was abolished entirely. The frozen funds were placed in LD. The first director was Holger Jensen, chief economist at LO. In 1986, he was succeeded by Poul Nyrup Rasmussen, who later became Prime Minister of Denmark. Rasmussen transformed LD into an active investment company, improving the return on its capital. LD continues to function as a pension company for those who did not receive their frozen cost-of-living allowances in the 1970s. At the end of 2017, LD managed assets of DKK 41.6 billion, representing frozen allowances from 1977 to 1979 totaling DKK 7.7 billion in historical kroner. With the introduction of the new holiday law in 2020, all holiday pay earned between September 2019 and August 2020 was to be frozen until the individual wage earner retires. LD was appointed to manage the frozen holiday pay and changed its name to LD Fonde, now administering two funds: Lønmodtagernes Dyrtidsmidler (the former Dyrtidsfond) and Lønmodtagernes Feriemidler. However, the COVID-19 pandemic disrupted the scheme; to stimulate the economy after prolonged lockdowns, the Danish Parliament decided that everyone could choose to receive their frozen holiday pay in 2020 and 2021. Most Danes took this option. About one third (900,000 wage earners) chose to leave their holiday pay with Lønmodtagernes Feriemidler as an extraordinary tax-favoured pension savings. Today, LD Fonde is headquartered in Copenhagen and operates solely in Denmark. It is an independent fund, not listed on any stock exchange, and is governed by Danish law. The fund emphasizes active ownership, responsible investment, and ESG engagement with portfolio companies. Its website provides current returns, annual reports, and news about its active ownership efforts, including dialogue lists and voting records.

• 2020

  New holiday law freezes holiday pay; LD appointed to manage it and renamed LD Fonde.

• 2020

  COVID-19 pandemic leads to early payout option for frozen holiday pay; most Danes take it.

• 2017

  LD manages assets of DKK 41.6 billion.

• 1986

  Poul Nyrup Rasmussen becomes director, transforming LD into an active investment company.

• 1980

  Lønmodtagernes Dyrtidsfond established to manage frozen cost-of-living allowances.

Statutory pension fund focused on responsible investment and active ownership for Danish wage earners.

• Lønmodtagernes Dyrtidsmidler

  Pension fund for frozen cost-of-living allowances; DKK 24.3 billion belonging to 360,000 members.

• Lønmodtagernes Feriemidler

  Fund for frozen holiday pay; DKK 22.4 billion belonging to 645,000 wage earners.

1. 1Forside | LD Fondeld.dk
2. 2Lønmodtagernes Dyrtidsfond - Wikipediada.wikipedia.org
3. 3Wikidatawikidata.org