Other Postretirement Benefits (OPEB)
Benefits Beyond Pensions
Some employers provide benefits after retirement other than pensions, such as healthcare, life insurance, or dental coverage. These benefits are accounted for similarly to defined benefit pension plans because they represent future obligations earned during employees' service.
- Retiree healthcare.
- Life insurance.
- Prescription drug coverage.
- Dental and vision benefits.
Summary
Other postretirement benefits create long-term obligations similar to pension plans.