What business needs in order to meet its OPEB obligations. (other post-employment benefits)

Financial Executive, March, 1989 by Nehrling, A. Herbert

Businesses are working on ways to maintain employee benefits and still meet the Financial Accounting Standards Board's proposed post-employment benefits funding obligations. A proposed legislative program would allow companies to use over-funded pension plans to finance retiree health benefits and set up prefunded post-employment benefits programs on a tax-favored basis.

What business needs in order to meet its OPEB obligations

Corporations are not expected to make drastic cut-backs in retiree health care benefits because of the proposed FASB standard. But to meet their funding obligations, they need legislation passed that will enable them, first, to use excess pension fund assets and, second, to prefund retiree medical benefits on a pre-tax basis. The proposed...

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