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Other Post-Employment Benefits (OPEBs) have become increasingly popular in recent years among employers and organizations seeking to retain and attract talented employees after they divide. OPEBs are non-pension post-employment benefits that provide economic security for qualifying employees in the form of continued health and life insurance coverage, as well as other financial incentives such as deferred compensation.
OPEBs are part of an employer’s total benefits package, and can go a long way in improving employee loyalty, job satisfaction, and performance. OPEBs can be one-time or ongoing payments, depending upon the type of benefit and how it is structured.
One of the most common types of OPEBs is health insurance. Employers can opt to provide health care coverage to former employees either after they retire or on a "lifetime" basis (i.e. until death). They can also choose to provide just partial coverage intended to complement an average retiree's individual plan. Some employers also provide life insurance policies offering coverage while the former employee is alive and continuing payments after death; such policies are usually the most popular OPEB has to offer.
Beyond health coverage, some employers also offer job-related educational and continuing marketing opportunities, legal and financial counseling services, as well as health services such as vision and hearing. Furthermore, some employers will offer deferred compensation programs which offer upfront payments for retiring employees and continuing payments after retirement for a certain number of years. The deferred compensation can either be paid out on a monthly basis or perhaps as a lump sum payment.
Retirees should take the time to understand the employer's OPEB plan, including the contribution and vesting requirements, eligibility criteria, and the specific type of benefits offered if any. Since these plans are not binding, they can be changed or discontinued at any time; however, plan documents should specifically state that the employer is unable to make any such changes.
In conclusion, OPEBs are a way for employers to recognize and reward longtime employees who have served the organization faithfully. OPEBs help to ensure that qualifying retirees receive the economic security they need while enabling former employers to maintain a positive image and productive employee base. It is important for employers to have a clear understanding of their OPEB plan, as well as for employees to educate themselves about their options and negotiate the best possible plan.
OPEBs are part of an employer’s total benefits package, and can go a long way in improving employee loyalty, job satisfaction, and performance. OPEBs can be one-time or ongoing payments, depending upon the type of benefit and how it is structured.
One of the most common types of OPEBs is health insurance. Employers can opt to provide health care coverage to former employees either after they retire or on a "lifetime" basis (i.e. until death). They can also choose to provide just partial coverage intended to complement an average retiree's individual plan. Some employers also provide life insurance policies offering coverage while the former employee is alive and continuing payments after death; such policies are usually the most popular OPEB has to offer.
Beyond health coverage, some employers also offer job-related educational and continuing marketing opportunities, legal and financial counseling services, as well as health services such as vision and hearing. Furthermore, some employers will offer deferred compensation programs which offer upfront payments for retiring employees and continuing payments after retirement for a certain number of years. The deferred compensation can either be paid out on a monthly basis or perhaps as a lump sum payment.
Retirees should take the time to understand the employer's OPEB plan, including the contribution and vesting requirements, eligibility criteria, and the specific type of benefits offered if any. Since these plans are not binding, they can be changed or discontinued at any time; however, plan documents should specifically state that the employer is unable to make any such changes.
In conclusion, OPEBs are a way for employers to recognize and reward longtime employees who have served the organization faithfully. OPEBs help to ensure that qualifying retirees receive the economic security they need while enabling former employers to maintain a positive image and productive employee base. It is important for employers to have a clear understanding of their OPEB plan, as well as for employees to educate themselves about their options and negotiate the best possible plan.