What is the first category of reporting for Other Post Employment Benefits (OPEB)?

The first category of reporting for Other Post Employment Benefits (OPEB) is the employer reporting of the liability. This is because entities that provide OPEB must account for the long-term obligations they have incurred in relation to these benefits. Under the Governmental Accounting Standards Board (GASB) pronouncements, particularly GASB Statement No. 75, governments are required to recognize their OPEB liabilities on the balance sheet. This reflects the present value of future benefit payments that the employer is obligated to make.

In recognizing the liability, employers need to understand and measure the benefits promised, taking into account factors such as healthcare costs, the number of retirees, and the expected duration of post-employment benefits. This reporting is crucial for creating a clear financial picture for stakeholders, ensuring transparency and accountability in how governments manage OPEB obligations.

Understanding the employer's liability first is essential as it sets the foundation for further financial reporting related to OPEB, including how they manage contributions, costs, and other related financial aspects in future reporting periods.