Coverage for retired police and firefighters who develop cancer would cost Plano about $75,000 a year, nearly four times the first estimate

A state law that took effect this year is costing Plano more than city staff first expected.

The City Council's Monday, Nov. 9, consent agenda includes a request to raise the estimated annual cost of a critical illness policy for retired police officers and firefighters from $20,000 to $75,000. The $55,000 increase reflects what the city actually paid through the end of October, according to a memo from the city's risk management staff.

What the law requires

House Bill 4144, passed by the Legislature in 2025, applies to cities and other local governments that employ at least 50 firefighters or peace officers. They must provide financial protection to eligible first responders who retire on or after Jan. 1, 2026, and are diagnosed within three years of retiring with certain cancers, a heart attack or a stroke, the memo says.

Plano meets that coverage through an interlocal agreement with the Texas Municipal League Intergovernmental Risk Pool, which the council approved earlier at the $20,000 estimate. Monday's item would modify that agreement for the 2026-27 budget year. Staff wrote that turning it down would leave the city out of compliance with the law.

Costs expected to keep climbing

The memo says premiums in future years will rise as more police officers and firefighters retire and become eligible. Money for the policy comes from the city's Risk Management Fund, and later spending would stay within budgets the council approves.

Consent items pass together in one vote unless a council member pulls one for separate discussion. The meeting starts at 7 p.m. at the Plano Municipal Center, 1520 K Ave.

Sources

plano.legistar1.com

plano.legistar1.com