Ten candidates are to fight it out in the forthcoming elections for Bermuda?s second largest union ? the Bermuda Public Services Union.

President Nigel Pemberton faces a challenge from Armell Thomas after three years at the helm for the $7,000 a year part-time post. Advance polling is next Thursday with the election on February 3.

Mr. Pemberton said he hoped to look at pension issues if re-elected after noting the depletion in the Government pension fund caused by discrepancies in when certain categories of employees can retire.

He said it might be necessary to increase the contributions of Police, fire and prison officers who can retire after just 25 years service. Mr. Pemberton, a 52-year-old Customs officer, said: ?We know Government is interested in looking at pensions as well.

?We became concerned when we looked at various reports saying the funds had taken a dip through investments. We just need to know the full state of play with the funds and where we are going with it.?

Mr. Pemberton, who replaced retiring president Betty Christopher in 2002, also feared for 200 posts named in Kurron report into the island?s hospitals which could be contracted out. ?We are still waiting for Government to release the full report.?

He fears workers will get a worse deal in the private sector while it will weaken the union?s position. Mr. Pemberton said he was most proud of the Government pay deals in his three years as president which have seen awards of 4.5, 3.8 and 2.8 percent.

But he said he was most upset about compromises in public service standards with individuals in the public sector being charged with fraud and embezzlement. He cited problems at Bermuda Housing Corporation, theft from the accountant generals? department and allegations of wrongdoing at immigration.

?We have the responsibility for the public purse, civil servants are in a position of great authority.?

He said misappropriation affected Government?s revenue and its ability to pay good salaries and the union was working with Government to educate members on the matter.

Government has already set up an independent assessment of financial controls in the Civil Service in the wake of the scandals. An independent auditor will review electronic payment processes and controls and make recommendations to improve security.

One civil servant has been imprisoned for stealing more than $150,000, another is facing deportation to the US and a third has been suspended recently. It is understood charges are imminent in the third case. Mr Pemberton?s challenger for the president?s post Armell Thomas, a health inspector, said it was time the union moved with the times. He said the union needed a president to represent all its the divisions.

?Not a person who only wakes up when certain issues are raised. We have 15 divisions but only certain divisions are looked at. There are a lot of problems in the divisions,? said Mr. Thomas, 35. Mr. Thomas added: ?We need to be innovative to business ideas. We cannot just exist on the dues of our members.?

Postal worker Alan Roberts is being challenged for first vice president by Customs officer Carla Thomas;

Nurses Elizabeth Perret and Maxine Herbert-Watson are fighting it out for second vice president after Verna Darrell stepped down;

Planning officer Kevin Grant is running for third vice president against clerk Debbie-Kay Martin after Armell Thomas stepped down; and

Administration assistant Cheryl Jones is challenging Lynn Wade for the recording secretary post.

Treasurer Michael Crichlow is not being challenged for his position, nor is assistant recording secretary Julie Smith.