Contents

This section describes how the value of the account balance is determined at the end of 1982. See Section 10(1), Items 1 and 2 of PAL.

 

The section covers

  • 1982 value
  • Determining the value of cash accounts
  • Determining the value of bonds
  • Determining the value of mortgages
  • Determining the value of index-linked bonds etc.

1982 value

This concerns a historical value which was established on 31 December 1982. This historical value cannot be changed.

 

The value determined on 31 December 1982 is a fixed value which cannot be revalued.

 

The value is reduced in connection with regular disbursements, partial disbursements and partial transfers according to the LIFO principle. See section B.7.6, Partial disbursement, and section B.7.7, Transfer under Section 41 of PBL.

 

Determining the value of cash accounts           

For cash accounts, the value of the account balance is determined as per 31 December 1982.

 

This also applies to:

  • cash accounts carrying interest on the basis of the yield on a security pool belonging to the bank and
  • cash accounts attached to a security custody account.

Determining the value of bonds     

The value of bonds is determined as per 31 December 1982 according to so-called 'synthetic prices'. See Section 25(2) of RAL as applicable at that time. It was necessary to use synthetic prices as the actual costs of securities in the banks' custody accounts were not normally registered. For administrative reasons, these synthetic prices always had to be used, even if the actual costs could be documented in specific cases.

 

The synthetic prices were calculated as an average of the costs of the bonds in the individual bond series which life insurance companies and pension funds covered by the Danish Insurance Business Act (Lov om forsikringsvirksomhed) as well as the Labour Market Supplementary Pension Fund (ATP) and the Employees' Capital Pension Fund (LD) were holding at the end of 1982.

 

Determining the value of mortgages                  

The value of mortgages is determined as per 31 December 1982 at a price of 85. Since 1972, it has not been possible to invest pension savings in mortgages, but there are probably still mortgages remaining in some pension savings plans dating back before 1972.

 

Determining the value of index-linked bonds etc.                

The value of index-linked bonds, convertible bonds, shares and investment certificates is determined as per 31 December 1982 at the market price.