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For Some Federal Retirees, Health Insurance Is Tax-Free
The Washington Post; subscription may be required 
Sept. 27, 2007
Excerpt: Since 2000, federal employees have been able to pay their health insurance premiums on a tax-free basis. The tax code does not extend this perk to federal retirees, to their dismay. But a little-noticed provision in 2006 Pension Protection Act has made an exception for retired 'public safety officers.' They can request that up to $3,000 from their annual pensions be deducted to pay for medical insurance and long-term-care insurance.
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