Other post-retirement benefits (OPRBs) are all benefits that are paid during retirement to employees with the exception of pension distributions (Investopedia, 2018).” Health insurance plans falls under the post-retirement benefits category and are mostly employer paid except in the instances where employees are required to pay their deductible or copayments. The main difference between the other post-retirement benefits and the pension distributions is that fact that OPRBs are non-cash distribution while pensions are paid out in cash to employees. Companies normally list the cost of retirement benefits in their financial statement so that this information is available to shareholders and other stakeholders.“A pension plan is a retirement plan that requires an employerr to make contributions into a pool of funds set aside for a worker's future benefit (Investopedia, 2019).” The employee is responsible for investing these funds and some employers may decide to contribute additional to individual employees’ pension plans.
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- Fall '17
- Sean Cote
- pension plan, Investopedia