PRESENTER: Presenter
Tracey Lawson, Assistant Director Human Resources
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SUBJECT: Title
Approval of an Interlocal Agreement between the City of New Braunfels and the Texas Municipal League Intergovernmental Risk Pool (TMLIRP), Amwins, and MetLife for participation in the House Bill 4144 Critical Illness Coverage Insurance Product for retired first responders.
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DEPARTMENT: Human Resources
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COUNCIL DISTRICTS IMPACTED: All
BACKGROUND INFORMATION:
Texas House Bill 4144 requires political subdivisions with at least 50 firefighters or peace officers to provide post-retirement critical illness benefits for eligible first responders retiring on or after January 1, 2026. If a qualifying retiree is diagnosed within three years of retirement with any of the defined cancers, stroke, or heart attack listed in the workers’ compensation disease presumption statute, the City must provide either a critical illness supplemental income benefit or comparable health benefit plan coverage. The benefit level follows the statutory requirement, the lesser of the retiree’s final annual salary or $100,000.
The Texas Municipal League Intergovernmental Risk Pool (TMLIRP), following a full RFP and market analysis, has partnered with MetLife and Amwins to deliver a compliant Critical Illness Insurance product. MetLife will provide the fully insured coverage, Amwins will administer the benefit, and TMLIRP will serve as the master policyholder.
Per Chapter 791 of the Texas Government Code, interlocal agreements must be authorized by the governing body of each participating entity. Legal counsel has reviewed the proposed Interlocal Agreement and confirmed the House Bill 4144 provides the necessary statutory authority for the City to obtain this critical illness coverage.
TMLIRP has competitively procured the required insurance product, and participation requires execution of the Interlocal Agreement solely for access to the coverage. The City currently has six eligible retirees who must be enrolled. Procurement has reviewed the proposed action and confirmed compliance with City purchasing requirements.
ISSUE:
NA
STRATEGIC PLAN REFERENCE:
☐Economic Mobility ☐Enhanced Connectivity ☐Community Identity
☒Organizational Excellence ☐Community Well-Being ☐N/A
FISCAL IMPACT:
Premium costs will be paid from the City’s Self-Insurance Fund. Total costs will vary based on the number of eligible retirees enrolled and their age. Coverage will begin on the retiree’s effective retirement date occurring on or after January 1, 2026, and will continue for three years from that date. The current estimated cost to provide coverage for the six eligible retirees is $990 per month, or $11,880 annually. These costs are expected to increase as additional firefighters and peace officers become eligible and elect to retire.
Recommendation
RECOMMENDATION:
Staff recommend approval of the Interlocal Agreement with the Texas Municipal League Intergovernmental Risk Pool, Amwins, and MetLife for participation in the House Bill 4144 Critical Illness Coverage program, as required by state law.