EU Probes France Telecom's Pension Funding Scheme

Law360, New York (May 20, 2008, 12:00 AM EDT) -- The European Commission is investigating whether it is illegal for the French government to help France Telecom SA fund its employee pensions, the commission said Tuesday.

The inquiry will focus on a 1997 change in retirement pension financing for state employees working for the telecommunications company. Before 1997, France Telecom had been obliged to finance all retirement schemes for its state employees.

After the reform, the French government took over that obligation, contending that the pensions were an undue burden on the company, especially when it...
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