What are other post-employment benefits (OPEB) commonly associated with?

Other post-employment benefits (OPEB) are primarily associated with health insurance and life insurance for retirees. These benefits are provided to employees after they retire and can represent a significant long-term liability for employers, especially in the public sector.

The primary focus of OPEB is on health-related benefits, as many retirees rely on these for healthcare coverage post-retirement. This includes various forms of health insurance that help cover medical expenses and the costs associated with maintaining health in retirement. Additionally, life insurance may also be provided as part of the benefits package, offering financial support to retirees' beneficiaries.

Understanding OPEB is crucial, particularly because it entails not just the immediate costs involved, but also the future liabilities that can emerge from providing these benefits to a growing retiree population. This makes staying informed about the implications of OPEB essential for effective governmental financial management.