...OPEB Burdens Generally Modest: Most states report a comparatively modest other post- employment benefits (OPEB) burden even though these liabilities, unlike those for pensions, do not benefit from material prefunding of benefits. The median reported state OPEB liability is 1.8% of personal income, with a range of 0%¡13.8%. This is lower than the median for both unfunded state pension liabilities (3.3%) and states' net tax-supported debt (2.6%), although with uncertainties in OPEB calculations and reporting, the numbers are not directly comparable. Nature of Benefits Varies: Some states promise to fully pay the cost of retiree healthcare (often until Medicare eligibility), while others incur a liability only because retirees may participate in the broader state health insurance pool at their own expense. Such implicit subsidies do not place direct funding demands on state budgets but rather elevate costs above what they would otherwise be, which Fitch Ratings considers a material difference....
