Relating to supplemental benefits for retired firefighters and peace officers diagnosed with certain diseases or illnesses.

Contracts

• Collective Bargaining Agreements (CBAs): Review current agreements immediately. Ensure this statutory benefit is not duplicative of existing severance or disability clauses. You may need to draft MOUs to clarify coordination of benefits.
• Insurance Carrier Agreements: Negotiate with health carriers to create a "Retiree Bridge" rider. This rider must mirror active employee coverage to satisfy the "comparable coverage" exemption, potentially avoiding the $100,000 cash payout.

Hiring/Training

• HR & Benefits Staff: Train staff on the new "3-Year Monitoring Window." Personnel files can no longer be closed immediately upon retirement; they must remain active for claims processing for 36 months.
• Risk Management: Staff must be trained to validate medical diagnoses under Government Code Sections 607.055 and 607.056 before authorizing payouts.

Reporting & Record-Keeping

• "Snapshot" Documentation: You must document the specific terms (deductible, premium, network) of the employee's health plan on their final day of work. This is your primary defense to prove you offered "comparable coverage" if a retiree demands the cash payout.
• Diagnosis Verification Forms: Create HIPAA-compliant intake forms for retirees to submit proof of diagnosis post-separation.

Fees & Costs

• Contingent Liability: Finance departments must accrue for a potential $100,000 liability per retiree.
• Inflation Adjustment: The $100,000 cap is tied to the Consumer Price Index (CPI). Prepare for the Commissioner to raise this cap significantly on September 1, 2025, potentially increasing exposure to ~$130,000+ per claim based on the last 10 years of inflation.