Final answer:
Other postemployment benefits (OPEB) are benefits provided to employees after employment ends, excluding pensions, and include health care, life insurance, and long-term care. While defined benefit plans like pensions are becoming rare, they are being replaced by defined contribution plans such as 401(k)s that offer retiree investment opportunities and portability.
Step-by-step explanation:
Other postemployment benefits (OPEB) refer to the benefits that employees receive from their employers after their employment has ended, other than pensions. This is indeed true. OPEB includes a variety of benefits such as health care, life insurance, and long-term care.
They are part of the total compensation package that may be provided to employees in addition to their hourly wages or salaries. These benefits are critical components of a retiree's financial security and are often valued by employees as part of their retirement planning.
Pensions, traditionally known as defined benefit plans, have become less common. They have been largely replaced by defined contribution plans like 401(k)s and 403(b)s. In a defined contribution plan, the employer makes a fixed contribution to the employee's retirement account which the employee can take with them if they change employers.
Unlike pensions which are affected by inflation, the real rate of return on the investments within a defined contribution plan can protect retirees' purchasing power.