Pension and postretirement benefits represent a significant
cost to employers. The Financial Accounting Standards Board has specified that
postretirement benefits are a form of deferred compensation. FASB concluded
that the obligation to provide postretirement benefits is incurred as the
By Edward W. Stepnick CPA, G. Robert Smith Ph.D. C.P.A. C.G.F.M and Dwayne N. McSwain CPA*
Employee pensions and other postemployment benefits (OPEB), such as healthcare, life insurance, disability, and long-term care benefits, are significant elements of cost for state and local governments. This...