Other postemployment benefits information

Other postemployment benefits (or OPEBs) is a term used in the United States to describe the benefits that an employee begins to receive at the start of their retirement. These benefits do not include the pension paid to the retired employee.^[1] "Other postemployment benefits" were originally intended to be an important source of supplemental coverage for people on Medicare. Typically this means that if employees retire before the age of 65 they can remain on their employer's health plan. Upon turning 65 they leave their employers plan for Medicare but still receive additional benefits from their employer.^[2] These benefits may include health insurance and dental, vision, prescription, or other healthcare benefits provided to eligible retirees and their beneficiaries. They also may include life insurance, disability insurance, long-term care insurance, and other benefits.^[3]

While these benefits are of great value to retirees, they have become scarcer in recent decades due to the dramatic costs they impose on employers. A recent study from the Kaiser Family Foundation found that the number of large employers offering other post employment benefits fell from 66% in 1988 to 23% in 2015.^[4] Despite their decreasing popularity in the private sector, many state and municipal employees still receive "Other postemployment benefits." According to The Pew Charitable Trust, all states except for Idaho currently offer newly hired public workers access to certain retiree health care coverage as part of their benefits package.^[5]