Other Post-Employment Benefits - OPEB

AAA

DEFINITION of 'Other Post-Employment Benefits - OPEB'

Post-employment 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.

INVESTOPEDIA EXPLAINS '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.

A deferred-compensation arrangement is a salary agreement where the employee, based on his/her work history or performance, is paid a salary for some predetermined time after retiring. The tax consequences for such an arrangement are often unattractive to the company, as payments are not usually tax deductible.

RELATED TERMS
  1. Deferred Compensation

    An amount of earned income that is payable at a later date. Most ...
  2. Dependent Care Benefits

    Benefits provided by an employer to an employee for use in caring ...
  3. 401(k) Plan

    A qualified plan established by employers to which eligible employees ...
  4. Pension Plan

    A type of retirement plan, usually tax exempt, wherein an employer ...
  5. Deductible

    1. The amount you have to pay out-of-pocket for expenses before ...
  6. Co-Insurance

    A co-sharing agreement between the insured and the insurer under ...
Related Articles
  1. Time To Rethink Your Post-Work Needs
    Retirement

    Time To Rethink Your Post-Work Needs

  2. Will Your Retirement Income Be Enough?
    Retirement

    Will Your Retirement Income Be Enough?

  3. A Social Security Reality Check
    Savings

    A Social Security Reality Check

  4. Life Insurance: How To Get the Most ...
    Retirement

    Life Insurance: How To Get the Most ...

comments powered by Disqus
Hot Definitions
  1. Ghosting

    An illegal practice whereby two or more market makers collectively attempt to influence and change the price of a stock. ...
  2. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  3. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  4. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  5. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
  6. Gresham's Law

    A monetary principle stating that "bad money drives out good." In currency valuation, Gresham's Law states that if a new ...
Trading Center