7 Apr 2008

Unions in French Polynesia condemn cut to pensions for public servants overseas

10:30 am on 7 April 2008

Unions in French Polynesia have condemned an announcement by the French president that he is to reduce the supplements paid to pensions of senior public servants drawing them in overseas territories.

Nicolas Sarkozy plans to do away with the up to 75 percent boost to

pensions of those who retire in French overseas territories unless they have worked there.

The government says the pension bonuses will cost about 500 million US dollars this year while it remains difficult to control if the recipients adhere to the residency requirements.

One French Polynesian union body described the proposed cuts as

irresponsible as they will take out millions of dollars out of an already struggling economy.

The teachers' association has also expressed its disappointment, fearing that retirees will move elsewhere because of the high cost of living.

It has called for a roundtable discussion on the proposed reform.