The PRC requires actuarial consultant services, using the OIG report as background, to review the method selected by OPM to allocate CSRS obligations associated with USPS employees' POD-era service between the Postal Service and the federal government.
The actuarial consultant shall provide reports, documentation and deliverables in verbal, written or electronic format (as appropriate) and shall provide weekly written progress reports.
The actuarial consultant shall:
Review the method employed by OPM to allocate CSRS liabilities incurred during employment by the POD and during employment with the USPS between the Postal Service and the Federal Government for the purpose of assessing the advantages and disadvantages of this allocation method
Advise as to any alternative methods that should be considered, including (but not limited to) the method suggested in the OIG paper
Provide an assessment of how an allocation would be structured if all parties had negotiating power similar to that involved in acquisitions in the private sector
As applicable, provide recommendations typically made in similar situations for estimating the allocation of pension liability between a parent company and subsidiaries, particularly if those subsidiaries are divested
As applicable, compare OPM's current method of allocation to standard or typical allocation methods used in a spin-off by other semi-government, government bodies or private sector entity undergoing a similar restructuring
Meet with OPM, USPS and USPS OIG actuaries, as needed, to discuss and to apply methods and results.
Support PRC staff members in identifying and assessing appropriate allocation methods
Provide related supporting data and, to the extent practicable, models or description thereof, to PRC staff
Address the appropriate level of funding for a Retiree Pension fund, including standard or typical practice, risks of overfunding vs. underfunding, volatility of funding assumptions, and any other important issues