CandleFocus Glossary Editor
Retirement is a difficult time for many employees. Not only have they dedicated their working years to secure a comfortable retirement plan, but they are also facing the likelihood of significant changes in lifestyle and financial obligations. With that in mind, many employers offer other post-retirement benefits to help ease the transition.
Other post-retirement benefits (OPRBs) refer to benefits that are paid to employees when they retire in addition to pension distributions. Common benefits of this kind include disability, health care, dental, vision, legal services, financial advice, and tuition credits. The specific benefits granted may vary from employer to employer.
With regard to disability benefits, employers may provide employees with a lump sum to cover medical costs associated with the disability or a predetermined amount of salary per month during retirement. Health care benefits may include a portion of premiums paid (or reimbursed) by the employer or free health-care services. Dental, vision, and legal services are often available to retired employees at significantly reduced rates. With financial advice, a retirement specialist is often available to retirees to walk them through their specific financial situation and give direction. Finally, tuition credits may be offered to those interested in taking classes to further their education.
All of these benefits are provided to retirees, are co-payable, and count as income. This means the employee and the employer split the cost at different levels. Consequently, these benefits may be taxable for employees, depending on the individual's tax situation and the cost of the benefit.
Overall, other post-retirement benefits are an invaluable resource for retirees who wish to remain financially independent. By investing in employee benefits, employers can ensure their retired workers receive the financial assistance they need during this new and often uncertain phase of life. With a comprehensive understanding of all of the options available, retirees can make informed decisions about how to best use these benefits to secure their financial future.
Other post-retirement benefits (OPRBs) refer to benefits that are paid to employees when they retire in addition to pension distributions. Common benefits of this kind include disability, health care, dental, vision, legal services, financial advice, and tuition credits. The specific benefits granted may vary from employer to employer.
With regard to disability benefits, employers may provide employees with a lump sum to cover medical costs associated with the disability or a predetermined amount of salary per month during retirement. Health care benefits may include a portion of premiums paid (or reimbursed) by the employer or free health-care services. Dental, vision, and legal services are often available to retired employees at significantly reduced rates. With financial advice, a retirement specialist is often available to retirees to walk them through their specific financial situation and give direction. Finally, tuition credits may be offered to those interested in taking classes to further their education.
All of these benefits are provided to retirees, are co-payable, and count as income. This means the employee and the employer split the cost at different levels. Consequently, these benefits may be taxable for employees, depending on the individual's tax situation and the cost of the benefit.
Overall, other post-retirement benefits are an invaluable resource for retirees who wish to remain financially independent. By investing in employee benefits, employers can ensure their retired workers receive the financial assistance they need during this new and often uncertain phase of life. With a comprehensive understanding of all of the options available, retirees can make informed decisions about how to best use these benefits to secure their financial future.