The announcement puts an end to weeks of speculation in the pensions industry. While former pensions minister Guy Opperman has been let go with Liz Truss entering Number 10, the new government had not yet confirmed his successor.
He will have his work cut out, taking on the new role amid a crisis in gilts markets and with LDI strategies making the headlines in national newspapers.
In line with Liz Truss’ focus on growth, the remit of the role has changed, from minister for pensions and financial inclusion to minister for pensions and growth.
The government is keen to convince pension schemes to invest more in illiquid assets, though the pension industry is keen to stress that it serves scheme members, rather than the tax payer.
The PLSA’s Nigel Peaple challenged Burghart on the role of pensions in this growth agenda. “I don’t see those two things being mutually exclusive,” Burghart replied. “Obviously we have to have pensions that deliver for people who saved into them. But it would be wonderful if we also had pensions that benefited UK plc, that is a massive win-win.
“I have talked to larger schemes about diversifying [their investments] and they are eager to go further into this space and they see potential in infrastructure and technology – all the things the government wants to drive, to have that more productive economy in the future.”
Unsurprisingly, supporting defined benefit schemes through the gilt crisis is at the top of Burghart’s in-tray.
“The Bank of England, The Pensions Regulator and I have been speaking over the past couple of weeks to make sure we are doing what we can to support every bit of the system to help us get through this period of turmoil,” he said.
On defined contribution, Bughart added little detail. “We have reached an important moment in auto-enrolment: we are 10 years in, and it has been an enormous success. And it is going to deliver results for a long time to come.”
He also added that the government can assist pension funds in regulatory terms, hinting that he could ease regulatory pressures.
These comments take place in the context of an ongoing DWP consultation on DB Funding Rules, which is set to close later this month.
Burghart’s comments tie in with the ‘bonfire of red tape’ that is at the heart of much of the prime minster’s thinking.
Picture credit: Daniel Graves Photography
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