Rising U.S. States’ OPEB Liabilities Signal Higher Costs Ahead

Source: S&P Global Ratings, November 28, 2018
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Other postemployment benefit (OPEB) liabilities, which consist primarily of retiree health care plans, are a growing concern for certain states’ credit quality and require attention to control higher future costs. Total unfunded state OPEB liabilities have increased significantly for the third year in a row, according to S&P Global Ratings’ latest survey of U.S. states.