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. Other Post-Retirement Benefits

    Benefits, other than pension distributions, paid to employees ...
  2. Deferred Compensation

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

    Benefits provided by an employer to an employee for use in caring ...
  4. 401(k) Plan

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

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

    1. The amount you have to pay out-of-pocket for expenses before ...
Related Articles
  1. Will Your Retirement Income Be Enough?
    Retirement

    Will Your Retirement Income Be Enough?

  2. Time To Rethink Your Post-Work Needs
    Retirement

    Time To Rethink Your Post-Work Needs

  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. Takeover

    A corporate action where an acquiring company makes a bid for an acquiree. If the target company is publicly traded, the ...
  2. Harvest Strategy

    A strategy in which investment in a particular line of business is reduced or eliminated because the revenue brought in by ...
  3. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  4. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The ...
  5. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The ...
  6. Budget Deficit

    A status of financial health in which expenditures exceed revenue. The term "budget deficit" is most commonly used to refer ...
Trading Center