What is EPBO?

The expected post-retirement benefit obligation (EPBO) is the discounted present value of an actuarial estimate of the total amount of benefits expected to be received by plan participants.

How do you calculate Epbo?

The EPBO is measured by determining the estimated future claims in each retirement year and computing the present value of those claims in the year of the financial statements. For our 38-year old employee, annual health care costs are an estimated $2,500.

What are other postretirement benefits?

What Are Other Post-Retirement Benefits? Other post-retirement benefits are benefits, other than pension distributions, paid to employees during their retirement years. Post-retirement benefits may include life insurance and medical plans, or premiums for such benefits, as well as deferred-compensation arrangements.

What is a postretirement benefit obligation?

What is an Accumulated Postretirement Benefit Obligation? An accumulated postretirement benefit obligation is the actuarial present value of benefits expected to be given to employees following their retirement from the employer, based on employee service performed through a specific date.

How are post retirement benefit expenses calculated?

It is calculated by multiplying the current period’s accumulated PBO’s beginning balance by the discount rate and subtracting benefit payments.

What is the most common postretirement benefit other than pensions?

Postretirement benefits other than pensions simply refer to benefits other than pensions that are paid to retired employees. Life insurance and medical plans are some of the most common examples of these benefits. It is also known as OPEB (other post-employment benefits).

What are two types of post retirement benefits?

Types of Retirement Plans

  • Employment based Pension Plans.
  • Government Retirement Plans.
  • Public Provident Fund.
  • Pradhan Mantri Vay Vandna Yojna (PMVVY)
  • Senior Citizen Saving Scheme (SCSS)
  • Insurance based Retirement Plans.

How is postretirement benefit expense calculated?

How is retirement liability calculated?

The quick and easy calculation for pension liability is found using this formula: Pension assets minus pension obligations equals pension liability.

Are post retirement health benefits taxable?

➢ Tax Reporting While the value of health care coverage provided to both active employees and retirees generally is not income taxable, employers, insurers and health plan sponsors must provide coverage information to employees and retirees and to the IRS.

How much is the post retirement benefit?

How much will I receive? The amount of Post Retirement Benefit that you will receive depends on your earnings and your age. If you are 65, the maximum monthly CPP pension that you can receive in 2020 is $1,175.83, and the maximum monthly PRB is about 1/40th of that, or $29.40. The maximum annual PRB is $352.75.

Is a pension an asset or income?

assets
Lump-sum receipts from pension and retirement funds are counted as assets. Count the amount as an asset or as income, as provided below. (1) If benefits will be received in a lump sum, include the lump- sum receipt in net family assets.