04/17/2013 10:25 EDT | Updated 06/17/2013 05:12 EDT

Quebec private pension plans face $40 billion deficit

A panel of experts studying the current Quebec pension plan said today that it’s in big trouble.

The committee, led by its president Alban D'Amours, released its report and recommendations for overhauling the system earlier today in Quebec City.

One in three working Quebecers is supposed to receive a defined benefit, or private, pension upon retirement.

But that system is facing a $40 billion deficit due to longer life expectancies.

Other than keeping the age of retirement at 65, the committee's main recommendation was to establish a longevity pension funded equally by employers and employees available to all Quebecers who reach the age of 75.

D'Amours admitted this could encourage people to delay retirement, but said it underlines the fact that people are living longer than their retirement savings accounted for.