NALC National Update – Oct 9, 2026
National items for Branch 4837 stewards and carriers — developments since the last digest.
OIG white paper on alternative retirement models
On Oct 6, 2026, the USPS Office of Inspector General released RISC-WP-27-001, a comparative analysis (with Segal) of USPS pension funding through FY 2044 under the current hybrid defined-benefit plus TSP model versus four alternatives. Status quo is projected to remain underfunded (unfunded liability cited around $101B in FY 2024; pension costs $10.3B / 11.5% of expenses in FY 2025). One option — diversifying investments toward about 60% equities / 40% bonds — could improve funding without cutting benefits, with more market risk. Three others would help funding by weakening benefits or raising employee costs: defined-contribution only for new hires; a fixed COLA that cuts retiree COLA upside; and doubling employee contribution rates (lower take-home). The paper does not endorse any change; Congress would have to authorize any departure from the current model. This is a steward watch item for benefits and legislative fights, not an implemented change.
Sources: USPS OIG RISC-WP-27-001 (Oct 6, 2026).
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