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Savers' and pensioners' nominal and real incomes have fallen sharply, while companies providing pension schemes have had to pour billions into their funds rather than their businesses, as low rates push up deficits.
The welfare report also highlighted the growing cost of providing pension benefits and tax relief for pension savers.
This criterion is met if a person demonstrates to the satisfaction of the PBGC that the person's costs of providing pension coverage have become unreasonably burdensome solely as a result of declining covered employment under all single-employer plans for which that person is a contributing sponsor.
A government efficiency adviser, he told us: "This trust has been set up for the perfectly legitimate purpose of providing pension benefits, has been operated with full visibility to HMRC at all times and is not the subject of any dispute with HMRC.
John Ball, head of final-salary pensions at the advisers Watson Wyatt, who has reviewed the published details of the scheme, said: "Finding more money for pension contributions won't be easy when pay is being squeezed but teachers would still only pay a fraction of the real cost of providing pension benefits".
As an increasing number of people live longer in retirement, the cost of providing pension and healthcare benefits can rise.
Similar(52)
This makes the cost of providing pensions more expensive.
Companies should not be in the business of providing pensions for their employees.
In the corporate sector lax accounting standards disguised the true cost of providing pensions.
Britain has already transferred about 40% of the burden of providing pensions to the funded private sector.
The cost of providing pensions has risen over the past decade; investment returns have been poor and interest rates have fallen.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com