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TX HB2688

TX HB2688
Relating to the public retirement systems of certain municipalities.


summary

Introduced
02/11/2025
In Committee
05/21/2025
Crossed Over
05/08/2025
Passed
06/20/2025
Dead
Signed/Enacted/Adopted
06/20/2025

Introduced Session

89th Legislature Regular Session

Bill Summary

AN ACT relating to the public retirement systems of certain municipalities.

AI Summary

This bill modifies the public retirement systems for firefighters and police officers in municipalities with populations of at least 2,000,000 (previously 1,600,000), making several key changes to their pension and retirement regulations. The bill updates the definition of "normal retirement age" for both firefighters and police officers, allowing members to retire when they reach 20 years of service or when they are at least 50 years old with 10 years of service, removing previous age and service combination formulas. It extends the maximum Deferred Retirement Option Plan (DROP) participation period from 13 to 15 years and modifies how DROP accounts are credited and managed. The bill also updates actuarial calculation methods, specifically changing the "entry age normal" actuarial cost method to calculate benefits for individual employees rather than just newly hired employees. Additionally, the bill adjusts provisions related to deferred pension benefits, allowing members with 10-20 years of service to receive a monthly pension starting at age 50, and removes some previous distinctions between members hired before and after specific dates. These changes aim to provide more clarity and potentially more flexibility in retirement planning for firefighters and police officers in large municipalities. The bill is set to take effect on September 1, 2025.

Committee Categories

Budget and Finance, Labor and Employment

Sponsors (26)

Last Action

Effective on 9/1/25 (on 06/20/2025)

bill text


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