Bill > SB2162

This bill relates to public retirement systems for firefighters in certain municipalities, introducing a comprehensive set of changes to the existing firefighter pension system. The bill creates two distinct groups of firefighters (Group A and Group B) based on their hire date, with Group A members hired before January 1, 2026, and Group B members hired on or after that date. Key provisions include establishing a new risk-sharing valuation process for determining city contributions, modifying the board of trustees' composition by adding two new independent board members, and implementing more structured rules for cost-of-living adjustments. The bill introduces a corridor mechanism for city contribution rates, with a minimum and maximum range, and provides mechanisms for adjusting member and city contribution rates based on the fund's financial performance. For Group B members, the bill introduces new provisions such as a shorter Deferred Retirement Option Plan (DROP) period, lower interest crediting rates, and different retirement and survivor benefit calculations. The bill also establishes more rigorous requirements for approving cost-of-living adjustments, including criteria related to the fund's funded ratio and amortization period. The changes are designed to improve the long-term financial sustainability of the firefighter pension system while maintaining meaningful benefits for current and future firefighters.

Budget and Finance

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=SB2162