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Image header Agence Europe
Europe Daily Bulletin No. 9286
Contents Publication in full By article 43 / 50
GENERAL NEWS / (eu) eu/state aid

Commission launches investigation into French Post Office's pension fund

Brussels, 13/10/2006 (Agence Europe) - On Thursday, the European Commission decided to open an in-depth investigation into a notified proposal to reform the financing of the pensions of public sector workers employed by the French Post Office (La Poste) to examine whether the reduction in La Poste's costs sought by the reform would not give La Poste an advantage over its competitors. The financing of such pensions, which affects around 61% of La Poste's staff, is currently subject to exceptional arrangements. Unlike other French companies, including those employing public sector workers, La Poste does not pay any employer's contribution in discharge of its obligations but is required by law to ensure the financial equilibrium of the pension scheme of the public sector workers it employs. This obligation has imposed a growing financial burden on La Poste. This burden has been capped since 1998, responsibility for the balance being assumed by the French state. Under the reform, from 2007 onwards La Poste will, like other companies, pay an employer's contribution in discharge of its pension obligations towards the public sector workers it employs. The amount of the contribution will be calculated in such a way as to ensure parity between La Poste's compulsory wages-based social and tax charges and those borne by ordinary companies (in such areas as transport and banking). The Commission will examine in particular whether the reduction in La Poste's costs brought about by the reform actually ensures fair competitive conditions. (ab)

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