In discussions between the city of Boise, Idaho (185,800), and its police and fire unions, the issue of postemployment health coverage has often come up. The unions wanted the city to provide health insurance for their retired members, but the costs of such coverage and its rapid growth rate made such a benefit unaffordable for the city. Instead, the city and unions agreed that the city would contribute to a postemployment health plan (PEHP) for each employee. Employees who retire after the equivalent of 15 years with the city can now use the proceeds from the postemployment health plan, tax free, to pay health insurance premiums and other health costs for many years after retirement. Steve Purvis Director of Special Projects City of Boise P.O. Box 500 Boise, ID 83701 208/384-3733 Fax: 208/388-4777 E-mail: spurvis@cityofboise.org