Brief Definition
Postretirement benefits refer to benefits that a company provides to its employees after they retire, in addition to pension plans. These benefits typically include health care, life insurance, and other forms of non-pension benefits. They are part of the total compensation package designed to support employees in their retirement years.
Further Explanation
Postretirement benefits refer to benefits that a company provides to its employees after they retire, in addition to pension plans. These benefits typically include health care, life insurance, and other forms of non-pension benefits. They are part of the total compensation package designed to support employees in their retirement years.
Example:
Health Care Benefits: Medical, dental, and vision coverage for retirees.
Life Insurance: Continued life insurance coverage post-retirement.
Other Benefits: May include things like long-term care insurance, legal services, or other support services.