Other postretirement benefit plan requires a named plan, population, date, and evidence owner. An other postretirement benefit plan promises nonpension benefits after retirement, such as medical or life coverage. Map eligibility, benefits, participant cost sharing, caps, subsidies, trend, funding, and amendment rights.
Apply it
Harbor Light's retiree medical promise uses EPBO for expected future benefits and APBO for the portion attributed through the date. Current claims paid are not the entire accrual cost.
Common mistake
Do not assume that other postretirement benefits use the pension PBO model without changes. Use EPBO, APBO, attribution, cost, trend, and participant-sharing rules for the plan's actual nonpension benefits. That error would omit the attribution, trend, and participant-sharing features of the nonpension promise.
Keep the boundary clear
Do not copy a pension model without adapting benefit terms and assumptions. Defined contribution and multiemployer arrangements remain on their own routes.
Authority
Read ASC 715-60-05-1 for the scope of other postretirement benefit accounting.
Put the concept to work
Apply this concept
- Explain and apply other postretirement benefit plan within a reconciled employer benefit-plan workpaper using supplied authoritative and actuarial facts.
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Build on these ideas
- Employee benefit arrangement — Apply
To apply this concept: Required. This prior concept supplies the terms, date, or measurement needed here.
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