OPEB Glossary

Accounting Word Cloud

Commonly used OPEB accounting terms

Accounting terms mentioned throughout our website may not be familiar to everyone and so we’ve complied a list of common terms related to FASB and GASB OPEB accounting standards.

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There are currently 3 terms in this directory beginning with the letter D.
Defined benefit OPEB plan
An OPEB plan having terms that specify the benefits to be provided at or after separation from employment. The benefits may be specified in dollars (for example, a flat dollar payment or an amount based on one or more factors, such as age, years of service, and compensation), or as a type or level of coverage (for example, prescription drugs or a percentage of healthcare insurance premiums).

Defined benefit pension plan
A pension plan having terms that specify the amount of pension benefits to be provided at a future date or after a certain period of time. The amount specified usually is a function of one or more factors such as age, years of service, and compensation.

Defined contribution plan
A pension or OPEB plan having terms that (a) provide an individual account for each plan member and (b) specify how contributions to an active plan member’s account are to be determined, rather than the income or other benefits the member or his beneficiaries are to receive at or after separation from employment. Those benefits will depend only on the amounts contributed to the member’s’ account, earnings on investments of those contributions, and forfeitures of contributions made for other members that may be allocated to the member’s account. For example, an employer may contribute a specified amount to each active member’s postemployment healthcare account each month. At or after separation from employment, the balance of the account may be used by the member or on the member’s behalf for the purchase of health insurance or other healthcare benefits. Healthcare cost trend rate - The rate of change in per capita health claims costs over time as a result of factors such as medical inflation, utilization of healthcare services, plan design, and technological developments.