Other Post-Employment Benefits (OPEB),
Definition of Other Post-Employment Benefits (OPEB):
Life insurance and healthcare premiums that a retired employee earns after retirement will most likely continue to be a taxable benefit. This will increase the retiree's total income tax payable for any given year.
Benefits received by an employee when he or she begins retirement, including health care and life insurance premiums, and deferred compensation - but does not include pension benefits.
Other post-employment benefits (OPEB) are the benefits that an employee will begin to receive at the start of retirement. This does not include pension benefits paid to the retired employee. Other post-employment benefits that a retiree can be compensated for are life insurance premiums, healthcare premiums, and deferred-compensation arrangements.
How to use Other Post-Employment Benefits (OPEB) in a sentence?
- Because they are not tax-deductible, private employers do not typically offer OPEBs except to key employees or management, but OPEBs are more common for public-sector or unionized workers.
- OPEBs may include health insurance coverage, life insurance, or deferred compensation to a retiree.
- Other post-employment benefits (OPEBs) refer to non-pension benefits (i.e., retirement income) paid to a retiree.
Meaning of Other Post-Employment Benefits (OPEB) & Other Post-Employment Benefits (OPEB) Definition