Question

Select all that apply

Which of the following statements regarding other postemployment benefits are true?

-The right to these benefits and most of the costs occur during the employees' service lives.
-Benefits are reported in two categories.
-These benefits are usually less well funded than pensions.
-These benefits share many characteristics with pensions.
-The most significant benefit is disability income.

Answer 1

The correct statements regarding other postemployment benefits are: 1) The right to these benefits and most of the costs occur during the employees' service lives. 2) Benefits are reported in two categories. 3) These benefits are usually less well funded than pensions.

Step-by-step explanation:

The correct statements regarding other postemployment benefits are:

1. The right to these benefits and most of the costs occur during the employees' service lives. Other postemployment benefits (OPEBs) include benefits such as healthcare coverage and life insurance that employees are entitled to after they retire from a company. The right to these benefits is earned during an employee's service with the company.
2. Benefits are reported in two categories. OPEBs are usually reported in two categories: the current cost of providing the benefits and the net actuarial accrued liabilities for the benefits.
3. These benefits are usually less well funded than pensions. OPEBs are generally less well funded compared to pensions. Employers typically contribute less towards OPEB plans and there may be less money set aside to cover these benefits.
4. These benefits do not share many characteristics with pensions. Pensions and OPEBs are two separate benefits, and they have different characteristics and funding mechanisms.
5. The most significant benefit of OPEBs is not disability income. OPEBs can include various benefits, such as healthcare coverage, life insurance, and other post-employment perks, but disability income is not the most significant benefit.