There are two types of OPEB:
The first and most common OPEB is referred to as Explicit OPEB. This may include employer paid post-retirement medical, pharmacy, dental, vision, life, long-term disability and long-term care benefits that are not associated with a pension plan.
The second type of OPEB is referred to as Implicit OPEB. Implicit or implied OPEB exists when an entity provides access to post-retirement medical, pharmacy, dental, vision, life, long-term disability and long-term care benefits through its current benefit structure without having separate rates for active and retired employees. In this case, the premiums are considered to be blended premiums requiring the determination of the implicit rate subsidy.