"I made it clear this would apply to all claimants in work and out of work, and would cover all benefits other than disability payments and the basic state pension, " he told me.

BBC: Yorkshire MP withdraws his benefits cash card bill

When you leave the company or retire, you transfer 401(k) assets to the pension plan, and the pension plan converts the rollover amount to an annuity that is actuarially equal to the amount you transferred, guaranteeing you additional lifetime payments in excess of your basic pension checks.

FORBES: How To Make Your 401(k) Last Forever: The Pension Rollover

Currently, everybody earning more than a basic income is legally required to make modest payments either towards the State Earnings-Related Pension Scheme or into a private pension.

ECONOMIST: The great pension debate