Title
Consider a memorandum/resolution authorizing an interlocal agreement with TML-IRP to provide group critical illness coverage, as required by House Bill 4144, retroactively effective January 1, 2026.
Body
DATE: June 2, 2026
TO: Kent Cagle, City Manager
FROM: Kate McDaniel, Executive Director of Human Resources
SUBJECT: Authorize Interlocal Agreement with TML-IRP for Group Critical Illness Coverage
BACKGROUND AND FINDINGS:
Texas House Bill 4144 (HB 4144) was passed during the 89th Texas Legislative Session. This bill requires political subdivision with at least 50 firefighters or peace officers to provide financial protection for eligible first responders who retire on or after January 1, 2026, and develop certain serious health conditions within three years of retirement. Covered conditions include specific cancers, heart attacks, and strokes as defined in the legislation.
Following a comprehensive RFP and market analysis, MetLife* and Amwins have partnered to offer a market-leading Critical Illness insurance product tailored to meet all HB 4144 requirements. The Texas Municipal League - Intergovernmental Risk Pool (TML-IRP) will serve as the master policy holder.
This product is the only product currently on the market to meet these needs/requirements.
THE ALTERNATIVES CONSIDERED:
N/A
Which alternative is recommended? Why?
N/A
CONFORMITY TO CITY POLICY:
This item conforms to City Policy and state and local laws.
FINANCIAL IMPACT:
What is the amount of the revenue/expenditure in the current fiscal year? For future years?
The estimated expense in FY26 is $40,000 and in FY27 is $40,000.
Future expenses would be dependent upon the number of eligible retirees.
Is this a one-time or recurring revenue/expenditure?
This is a recurring expenditure.
Is this revenue/expenditure budgeted?
Yes.
If not, where will the money come from?
N/A
Is there a sufficient amount in the budgeted line-item for this revenue/expenditure?
Yes, TXHB 4144 615-55440-170-171-000000 and funds will be included in the FY27 Proposed Budget, upon approval by City Council.
RECOMMENDATION:
Staff recommends the City Council authorize the interlocal agreement with TML-IRP to provide group critical illness coverage, as required by HB 4144, retroactively effective January 1, 2026, and authorize the City Manager to execute any and all necessary change orders in accordance with state and local laws.
DEPARTMENTAL CLEARANCES:
Finance
Legal
City Manager
ATTACHED SUPPORTING DOCUMENTS:
Statement of Responsibility
Agreement
Presentation