The junior French minister in charge of overseas territories, Yves Jego, has made proposals for a new ceiling for top-ups for those drawing a French pension overseas as strikes in protest at cuts continue in Tahiti.
Mr Jego has met the French Polynesian president, Gaston Tong Sang, as well as delegates from New Caledonia in Paris, saying a limit of 14,000 euros a year as top-up will be paid to those retiring next year and in 2010.
Mr Jego has told reporters that the top-up will be lowered year by year and be eliminated altogether by 2029.
In the face of teachers resigning, Mr Jego says no cuts will be made before the end of the school year, which means that a 75 percent top-up to the French pension will remain.
The announcements in Paris come amid continued strike action in Tahiti where public servants keep blocking the port and the street outside the French high commission.