Other Post-Employment Benefits (OPEB)

Through the collective bargaining process and under the authority of Government Code section 22940 – 22944.5, OPEB is the method by which the State of California, as the employer, and its employees jointly prefund health benefits that current active employees will receive as state retirees.

All employees in positions eligible for health benefits, whether or not currently enrolled, prefund OPEB. The state prefunds a matching contribution. The effective prefunding dates and contribution percentages for each bargaining unit (BU) are outlined in the applicable Memorandum of Understanding. Excluded and exempt employees directly associated with a BU prefund the same percentage as the BU employees. Employees in positions with specific ties to a BU are outlined in the “Additional Exempt and Excluded Classifications Prefunding OPEB with a Bargaining Unit” document. 

For more information, please visit the CalHR HR Manual – 1422 Other Post-Employment Benefits (OPEB) Prefunding and OPEB FAQs.