What Are Other Post-Retirement Benefits?

Other post-retirement benefits are benefits, other than pension distributions, paid to employees during their retirement years. Post-retirement benefits may include 澳洲幸运5官方开奖结果体彩网:life insurance and medical plans, or premiums for such benefits, as wel🥀l as deferred-compensation arrangements.

Although these benefits are mostly employer-paid, retired employees often share in the cost of these benefits through co-payments, payment of 澳洲幸运5官方开奖结果体彩网:deductibles, and making employee contributions to the plan when required. Other post-retirement benefits may also be referred to as "澳洲幸运5ಌ官方开奖结果♛体彩网:other post-employment benefits (OPEB)."

Understanding Other Post-Retirement Benefits

The benefits that fall within this category are all of the non-cash payment benefits available to employees, including dental, vision care, legal services, and tuition credits. These additional benefits, along with traditional pension benefits, can be a large expenditure for companies offering these plans, especially if the plans are 澳洲幸运5官方开奖结果体彩网:fully funded by the company.

The costs of these plans can be found in a company's 澳洲幸运5官方开奖结果体彩网:financial statements, usually in t🐷he notes, which will also disclose the size of the obligation along with how well funded the fund is.

Post-retirement benefits may be provided by local and federal government agencies, priꦑvate and public companies, and nonprofit institutions, such as charities, religious groups, colleges, and universities. Such benefits may be paid for (in full or in part) by the employer, the retiree, or a combination of the 🉐two.

Other Post-Retirement Benefits and Cost

Direct contributions that pay for any post-employment benefits can expose an employer to certain risks and liabilities. For example, take th♎e example of a former worker who is granted health insurance coverageꦆ at the cost/premium rates as current employees.

Typically, a retired worker will be older than the average current employee, and will, therefore, be more likely to incur higher medical expenses. With this in mind, insurers may charge higher group rates to employers who intend to keep retired employees on the plan. However, with Medicare kicking in at 65, they would likely only be covering younger retired employees for a relatively short timespan.

As with other forms of retirement compensation, other post-retirement benefits can come with stringent reporting requirements due to their costs to an organization, as well as for the ov💜erall return on investment compared to the value of the work employees have performed before retirement.

Other Post-Retirement Benefits and Compliance

The rules governing how companies report pension costs and obligations, as well as the disclosure of pension assets and obligations, are covered under Accounting Standards Codification Section 715 (), formerly called the Statement of Financial Accounting Standards Nos. 87/88/158. The Ameriওcan Society of Pension Professionals & Actuaries (ASPPA) provides a guide on how to , which describes the disclosure information for a client’s financial reports, as well as lists the methodology used to complete the required actuarial calculat🍸ions.