Other post retirement benefits (OPRBs) paid to employees once they retire.
The benefit I am going to focus on is health insurance. a I feel that it is the most
beneficial for a retiree. a Healthcare can become expensive the older a person
gets not only for the business providing the insurance but also for the person
paying the difference because of their age. a
OPRBs and pensions are postretirement benefits that have differences and
similiarities. One similarity that they have is they are both a liability to the
company. a Some believe that a company should continue to provide OPRB
compensation for their retired employees because those benefits were earned
during their time of employment while others believe that the OPRB doesn't
have the same legal contract as the pension agreement. a They believe there is
no liability to the company if they decide to take those benefits away. a
There are some major differences between healthcare OPRBs and pensions.
One is your beneficiary which is usually the retired employee while your
healthcare OPRB is offered to your spouse, dependents until a certain and
retired employee. a Two is benefit which with your pension is a set amount and
your healthcare OPRB is not a set amount because expenses vary due to
illnesses and their severity, benefits are paid as they are used. Three is funding
which would be your pension which is funded by the company a and your
contributions are tax-deductible. a Legally companies don't have to fund
OPRBs but they are still tax-deductible.
References:
Wahlen, Jones, Pagach. (2017) Intermediate Accounting. 19-5a Conceptual
Overview of Other Postretirement Benefits.
