Other Post Employment Benefits (OPEB) are benefits that employers provide to their retirees, other than pension benefits. They are usually composed of retiree health care benefits, prescription drug coverage, dental and vision, but may also include life insurance, disability, long-term care and other services.
OPEB Management Strategies
Many municipalities are looking for strategies to manage or reduce unfunded liability associated with OPEB. With growing attention and awareness on unfunded liability and the impact on communities, it is important for you to understand your options.
Based on a report from the Michigan State University Extension Center for Local Government Finance and Policy, there are approximately 334 units of local government that provide retiree health care to their employees. The report, titled Legacy Costs facing Michigan Municipalities, is an update to a 2013 report and features the latest data and analyses of methods to reduce health care and pension liability, along with detailed county information.
MERS currently serves over 300 municipalities with the Health Care Savings Program and/or the Retiree Health Funding Vehicle. In addition, we have partnered with Mercer Marketplace 365 to provide you with access to a private retiree health care exchange.
OPEB Case Studies
We hope case studies from our member base showing how they successfully addressed these issues will be of great use to you.