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The Treasury also confirmed that the government would allow new pensioners in private sector defined benefit schemes to transfer into defined contribution pension schemes.
She said: "The new FT defined contribution pension plan is among the best offered anywhere.
But ever since, shortly after ERISA, the world has been moving towards defined contribution pension plans, where a defined contribution pension plan doesn't promise what you'll get in retirement.
So then, a portfolio manager for a defined contribution pension plan doesn't have to worry about hitting targets.
A defined contribution pension scheme is set up by the employer, and he or she must contribute to the scheme.
The average defined contribution pension fund is worth about £30,000, which delivers very little pension income in retirement anyway.
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Each employer determines in advance how much he will contribute to an employee's insurance, as in a defined-contribution pension plan.
Many investment companies have begun providing their defined-contribution pension participants with individualized, retirement income projections.
That is almost certainly still a better deal for workers than a defined-contribution pension.
The rise of defined-contribution pension plans has been shifting power towards individual investors for years.
Two regulatory repairs of the defined-contribution pension system could reduce the risk of similar episodes in the future.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com