Ros Altmann

Dr Ros Altmann , born 1956, a former member of the Number 10 Policy Unit is the prominent UK academic and pensions expert who led the five year UK political campaign on behalf of people who lost company pensions. She has twice been the recipient of the [http://www.professionalpensions.com/790491 Pensions Personality of the Year Award] .

Education.

Altmann attended the Henrietta Barnett School winning the Dame Henrietta Barnet Memorial Prize for Sixth Form achievements. She was awarded a first class honours degree from the University of London and a Kennedy scholarship to Harvard University where she met both Mervyn King and Larry Summers. She received a Ph.D from the London School of Economics for research into poverty in elderly people.

Business career

A senior investment management role at Chase Manhattan was followed by directorships at Rothschild International Asset Management and NatWest. Her work included advising on strategy for UK Pension funds and funds established under the US ERISA rules plus advice to central banks. A full time job gave her insufficient time with her young family so in 1993 she became an independent investment consultant with clients including 3i group, BT, HM Treasury, Standard Life , the BBC, Sky and Channel 4. In 2000 she became an advisor on savings, pensions and retirement to the Number 10 Policy Unit, where one of the tasks was to encourage middle income groups to save. She was also appointed as a consultant to the Myners Review of Pensions fund investment but the Government failed to accept her recommendation of additional protection for company schemes and official Department for Work and Pensions literature continued to advise both scheme trustees and members that pensions were completely safe whatever happened to the sponsoring company.

Pensionstheft Campaign.

The campaign which "propelled her into the media spotlight" began in July 2002 when Allied Steel and Wire, part of the former UK nationalised Steel industry with plant in Sheerness and Cardiff went into receivership. Although their pension scheme was “fully funded” according to the prescribed UK Government Minimum funding requirement formula, this level of funding was only sufficient to pay those already retired. The existing workforce, many of whom had very long service, would receive only their Guaranteed Minimum Pension, on average, about 40% of what they had expected. The BBC Panorama program asked Altmann to go to Cardiff to explain to the workers what had happened to their pensions. [http://observer.guardian.co.uk/business/story/0,,2020648,00.html The Thorn in Brown's Side] Altmann was the obvious choice. “She has vast experience in the field, having managed institutional investment portfolios for 15 years, including pension funds, insurance funds and unit trusts.” [http://news.bbc.co.uk/1/hi/programmes/panorama/2465123.stm Panorama:Dr Ros Altmann ]

Believing once the facts were established that the Government would recognise their mistake and provide rapid compensation, Altmann set up the Pensionstheft Action Group encouraging members to lobby their MPs for compensation and write to local newspapers. She used her political and press contacts to ensure PAG appeared regularly in news bulletins and newspapers with the banner “Stripped of our pensions”.In 2004, threatened by a back bench rebellion, the Government set up the Pension Protection Fund to help schemes which failed in future. It also offered limited retrospective compensation via the Financial Assistance Scheme to those within 3 years of retirement but the majority got nothing. The pensioners had expected much more and Altmann took four representative complaints to the Parliamentary Ombudsman, Ann Abraham. In March 2006, Abraham, published a report "Trusting in the pension promise" http://www.ombudsman.org.uk/improving_services/special_reports/pca/pensions%20report/guide.html Trusting in the pension promise]

which found official information "inaccurate, incomplete, unclear and inconsistent".She recommended the Government consider offering compensation for lost pensions and the suffering and distress caused. It was immediately rejected by Tony Blair. http://news.bbc.co.uk/1/hi/business/4805948.stm Government rejects pension ruling] . In accordance with Parliamentary procedure when the Ombudsman’s recommendations are rejected, the Public Administration Select Committeeexamined the evidence. In July 2006 they published a report http://www.publications.parliament.uk/pa/cm200506/cmselect/cmpubadm/1081/1081.pdf The Ombudsman in Question ] broadly agreeing with her conclusions. http://news.bbc.co.uk/1/hi/uk_politics/5227522.stm MPs urging pensions compensation ]

It was also rejected and Altmann took their case to solicitors Bindman & Partners. With Altmann's help, John Halford of Bindman's and barristers, Dinah Rose QC and Tom Hickman from Blackstone Chambers, all working on a no win no fee basisprepared a Judicial Review. In February 2007 a High Court Judge, Mr Justice Bean found for the pensioners. [ http://www.guardian.co.uk/money/2007/feb/21/occupationalpensions.business Pensions victims win high court action] He ruled that rejection of the Ombudsman's report was unlawful and irrational, and described the reasons for the omissions in the DWP leaflets as “minute textual analysis” of a kind that:

"“can in my view only give comfort to those who consider that it is unwise to believe anything one reads in a government publication. It is particularly ironic when applied to a leaflet whose back cover boasts that it has been awarded a Crystal Mark for clarity by the Plain English Campaign. PEC 3, especially page 15, gives the clear impression that following the enactment of the new law scheme members can be reassured that their pensions are safe whatever happens. I have no doubt that this is what it was designed to do. I agree with the Ombudsman that it was inaccurate and misleading.”" [http://www.bindmans.com/index.php?id=254 High Court rules in favour of pensions campaigners]

The Government appealed, the case was heard by three Appeal Court judges in late July 2007. In the March 2007 budget the Chancellor of the Exchequer announced additional compensation for the Financial Assistance Scheme and a review to be carried out by Andrew Young to find the most efficient method of using existing scheme funds and any other appropriate finance. [http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2007/07/15/cnins115.xml Plot to raid £20bn insurance pot] This reported in December 2007 after a delay [http://news.bbc.co.uk/1/hi/business/7136164.stm Cabinet 'row' over pension rescue ] but it eventually provided a level of compensation most commentators and pensioners thought was fair. [http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2007/12/17/cmpension117.xml<'Justice at last' for 'robbed' pension workers]

In February 2008, much later than expected, the Appeal Court delivered its verdict. The Government was once again found guilty of misleading the pensioners and the constitutional position of the ombudsman was clarified. [http://www.bindmans.com/index.php?id=384 'Irrational': Unanimous Court of Appeal's verdict on Pension Ministers' defiance of Ombudsman report]

The Government could reject her findings but must provide “cogent reasons” for doing so to Parliament, a simple difference of opinion would not suffice.The Government announced it was considering appealing directly to the House of Lords. [http://www.independent.co.uk/news/business/news/dwp-may-go-to-house-of-lords-after-losing-pensions-appeal-779881.html DWP may go to House of Lords after losing pensions appeal] but in March 2008, it decided to accept the Appeal Court verdict. The campaign had taken over 5 years of continuous effort for which Altmann received no payment.

'Money Back Guarantees' for Annuities

In the UK, the purchase of an annuity for those with private pension funds is compulsory and the insurance company keeps the capital in exchange for a lifetime income.Wealthier people, i.e. those with a fund worth at least £100,000, can delay the purchase until aged 75 using pensions draw down to provide income. If they die early, their estate can keep the residue, subject to 35% tax. [ [http://www.pensionsadvisoryservice.org.uk/Personal_and_Stakeholder_Pensions/Income_Drawdown/ The Pensions Advisory Service (TPAS) - Personal and Stakeholder Pensions - Income Drawdown ] ]

Altmann has campaigned for capital protection since 2002, arguing that that draw down provides refund guarantees that poorer people are denied.She believes providing an immediate cash return, less tax for everyone would enhance the reputation of annuities and encourage more people to take out private pensions. An additional benefit would be that those opting for draw down, purely for capital protection would have no need to take the higher risk. [ [http://www.rosaltmann.com/annuitymoneyback.htm Dr. Ros Altmann - 'Money Back Guarantees' for Annuities ] ]

Pensions Reform

Altmann is highly critical of the UK's new pensions savings scheme, Personal Accounts.She fears the advice will be inadequate and many lower paid workers will be automatically enrolled into a scheme which will provide less than the means tested benefits they would receive anyway. She says the Government could compensate those who lose out but fears that like those in failed Company pension schemes, they will be ignored if possible. [http://www.rosaltmann.com/FTLetterPersAccts.htm Letter published in FT on personal accounts reform] She doesn't think most people can save enough and says those entering retirement should be encouraged to work part time so their pensions top up their earnings. [ [http://www.pensions-management.co.uk/news/fullstory.php/aid/4424/Fighting_for_fair_play.html Fighting for fair play - Pensions Management - the magazine for pension & investment industry professionals ] ]

Personal Life.

Altmann is married with 3 children and lives in London.

External links

* [http://www.thisismoney.co.uk/news/columnists/article.html?in_article_id=428677&in_page_id=19&in_author_id=3 Please applaud these pension fighters]
* [http://www.dofonline.co.uk/economy/appeal-court-to-judge-on-government-miss-selling-of-occupational-pensions7547.html Appeal court to judge on Government ‘misselling’ of occupational pensions]
* [http://www.moneyweek.com/file/40073/profile-the-biggest-names-of-2007.html Fighter of the year]
* [http://business.timesonline.co.uk/tol/business/movers_and_shakers/article3065573.ece Business big shot: Ros Altmann]
* [http://www.pensionstheft.org Pensionstheft Action Group website]

Notes