Ros Altmann appointed pensions minister in cabinet reshuffle

Ros Altmann, an expert on pensions and retirement policy, has been appointed pensions minister, as the industry absorbs the biggest reforms to the sector in nearly a century.

Dr Altmann, a high-profile campaigner on pensions issues, is an economist by training, and worked for many years in fund management in the City of London.

Before the general election, the Conservatives had revealed plans to make her minister for financial consumer protection in the next government. She was to take on the specially-created role from the Lords, where she was to be nominated for a peerage, if the Tories came to power.

However, David Cameron, prime minister, said on Monday that Dr Altmann would take on the role of pensions minister vacated by Steve Webb, the Liberal Democrat MP who lost his seat in the election.

The pensions industry welcomed the appointment, which comes as the government's pensions reforms are in the early stages of bedding in.

"We are looking forward to working with Dr Altmann," said the National Association of Pension Funds, which represents workplace pension schemes and is calling for an independent commission to guide pensions policy.

"We want to share our expertise to negotiate the tough challenges that lie ahead - some of which may require difficult decisions. We encourage the minister to consider the benefits an independent commission would offer. By providing impartial and independent expertise and analysis a commission would allow the minister to make policy that stands the test of time."

David Fairs, chairman of the Association of Consulting Actuaries (ACA) suggested Ms Altmann's experience would prove valuable in the new job.

"Ros is well attuned to both the private pensions market and the aspirations of the public in terms of pension outcomes and delivery of service," said Mr Fairs.

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Ms Altmann had been set to undertake a review of financial fairness and extending financial guidance to younger savers as part of the Consumer Protection brief; it is unclear how these initiatives will now be carried forward.

Some experts said they were not surprised that Ms Altmann had been switched to a different role in the new government.

"It never made sense to have her as a consumer protection minister (clearly involved in addressing pension issues) in the House of Lords as well as a separate pensions minister operating from within the Commons," said Malcolm McLean, senior consultant with Barnett Waddingham, the consultancy.

"The risk of overlap of roles and/or a division of responsibilities was self-evident and having promised Ros a position prior to the election (for some reason which was not completely clear) Cameron probably felt committed to give her the job," he added.

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