Other Post-Employment Benefits (OPEB)

Other post-employment benefits (OPEB) refers to the benefits, other than pensions, that a state or local government employee receives as part of his or her package of retirement benefits. Typically retiree medical insurance is the most significant OPEB offering, though other benefits such as life insurance are also covered by this umbrella term.

GASB Statements No. 74 and 75

In June 2015 GASB approved two new statements applicable to OPEB plans and participating governments. Statements No. 74 and 75 will replace No. 43 and 45 and make changes to the financial reporting framework for OPEB plans, including the reporting of a net OPEB liability (or a proportionate share of the net OPEB liability, if a sponsoring government). The new statements also require more extensive disclosures and required supplementary information including reporting the effects of changes in assumptions on the net OPEB liability and a schedule of a government's OPEB contributions compared to the contributions required.

Statement No. 74 applies to OPEB plans that administer benefits on behalf of participating governments. It takes effect for financial statements with fiscal years beginning after June 15, 2016.
- Summary of Statement No. 74
Statement No. 75 applies to governments who participate in OPEB plans. It takes effect for fiscal years beginning after June 15, 2017.
- Summary of Statement No. 75
GASB OPEB Implementation Guide

Additional resources:

NASRA Resources

OPEB Benefits by State: FY 2017 Snapshot, NASRA and the Center for State & Local Government Excellence, July 2019
State OPEB Plan Designs, June 2019
Retiree Health Care Benefits for State Employees in Fiscal Year 2015, NASRA and the Center for State & Local Government Excellence, May 2017

Other Resources

US States Are Slow to Reform OPEBs as Decline in Liabilities Masks Increased Risks, S&P Global, December 2019
Retiree Medical Benefits Generate Unique Cost Drivers And Risks For U.S. States, S&P Global, September 2019
OPEB Brief: Risks Weigh On Credit Even Where There Is Legal Flexibility, S&P Global, May 2019
Rising US States' OPEB Liabilities Signal Higher Costs Ahead, S&P Global, November 2018
New GASB Statements 74 and 75 Provide Transparency for Assessing Budgetary Stress on U.S. State & Local Government OPEBs, S&P Global, March, 2018
Use of Individual Medicare Marketplaces for Public Sector Retiree Health Care: A Guide for Elected Officials, Center for State and Local Government Excellence, March 2020
How Big a Burden are State and Local OPEB Benefits?, Center for Retirement Research, March 2016
GASB's Updated Accounting Standards for Other Postemployment Benefits (OPEB), The Segal Company, April 2016
Retiree Health Survey Reveals Awareness and Concern Related to GASB OPEB, The Segal Company, April 2016
Rising OPEB Liabilities for the 15 Largest US Cities Could Strain Budgets and Pose Credit Risks, S&P Global, October 2017
Best Practice: Ensuring OPEB Sustainability, Government Finance Officers Association

Become A Member

Becoming a member of NASRA offers a unique opportunity to join a community committed to the sound, efficient, and innovative stewardship of public retirement systems. Membership connects you with a network of professionals and experts, providing valuable insights into managing public retirement systems with a focus on sustainability and risk-averse strategies.

By joining NASRA, you gain the tools and resources to enhance the management of public retirement systems, ensuring their long-term success and reliability for generations to come.

What’s New at NASRA: Employee Contributions to Public Pension Plans

Employee contributions remain a central part of public pension financing, and the way those contributions are structured is subject to change depending each states' governance rules. . NASRA’s 2026 updated brief finds median employee contribution rates of 6.2 percent of pay for employees who participate in Social Security and 9.0 percent for those who do not. For employees who do not participate in Social Security, the public pension often plays a broader role in retirement security, effectively providing two of the traditional three legs of the retirement stool rather than one.

Since 2009, 41 states increased employee contributions in at least one plan, while some states recently reduced rates for selected employees. Variable contributions are also becoming more common, with 26 plans in 17 states adjusting employee rates based on funding, plan costs, or other factors. The brief provides current trends and a state-by-state look at employee contribution requirements across public retirement systems.