HB 2802 — Relating to the administration of, contributions to, and benefits under retirement systems for firefighters in certain municipalities.

Summary

Relating to the administration of, contributions to, and benefits under retirement systems for firefighters in certain municipalities.

Bill Text

AI-generated reading aid from the bill's amendatory text — verify against the official bill.

This bill amends 19 section(s) of the Texas statutes: Section 1.02, Section 2.02, Section 2.05, Section 2.07, Section 5.04, Section 5.05.

• Section 1.02

  2 3 4 5 6 7 8 9 10 11 12 13 → (2) "Actuarial accrued liability" means the portion of the actuarial present value of projected benefits of the fund attributed to past periods of member service based on the cost method used in the risk sharing valuation study under Section 10.01B of this Act, as applicable. board's (4) "Actuarial value of assets" means the value of the fund's assets as calculated using the asset smoothing method used in the risk sharing valuation study under Section 10.01B of this Act, as applicable. (5) "Amortization period" means: (A) the period necessary to fully pay a liability layer; or (B) if referring to the amortization period of the fund as a whole, the number of years incorporated in a weighted average amortization factor for the sum of the legacy liability and all liability layers as determined in each annual actuarial valuation of assets and liabilities of the system. (6) "Amortization rate" means, for a given calendar year, the percentage rate determined by: (A) adding the scheduled amortization payments required to pay off the then-existing liability layers; (B) subtracting the city legacy contribution amount for the same calendar year, as determined in the risk sharing valuation study under Section 10.01A or 10.01B of this Act, as applicable, from the sum under Subsection (A); and (C) dividing the difference under Subsection (B) by the projected pensionable payroll for the same calendar year. 7 8 (9) "City" means a municipality to which this Act applies. (10) "City contribution rate" means, for a given calendar year, a percentage rate equal to the sum of the city normal cost rate and the amortization rate, as adjusted under Sections 10.01C or 10.01D of this Act, as applicable. (11) "City legacy contribution amount" means, for each calendar year, a predetermined payment amount expressed in dollars in accordance with a payment schedule amortizing the legacy liability for the calendar year ending December 31, 2024, that is included in the initial risk sharing valuation study under Section 10.01A of this Act. (12) "City normal cost rate" means, for a given calendar year, the normal cost rate minus the applicable member contribution rate determined under Section 10.02 of this Act. 13 (14) "Corridor" means the range of city contribution rates that are: (A) equal to or greater than the minimum city contribution rate; and (B) equal to or less than the maximum city contribution rate. (15) "Corridor margin" means five percentage points. (16) "Corridor midpoint" means the projected city contribution rate specified for each calendar year for 25 years as provided by the initial risk sharing valuation study under Section 10.01A of this Act, rounded to the nearest hundredths decimal place. 17 (18) "Employer" means the municipality described in Section 1.01 of this Act or the board of trustees. (19) "Estimated city contribution rate" means, for a given calendar year, a city contribution rate equal to the sum of the city normal cost rate and the amortization rate of the liability layers, as applicable, excluding the legacy liability layer, and before any adjustments under Sections 10.01C or 10.01D of this Act. 20 21 22 (23) "Funded ratio" means the ratio of the actuarial value of the fund's assets divided by the fund's actuarial accrued liability. (24) "Group A member" means a member who was initially hired by the city as a firefighter prior to January 1, 2026. (25) "Group A retiree" means a retiree who was initially hired by the city as a firefighter prior to January 1, 2026. (26) "Group B member" means a member who was initially hired by the city as a firefighter on or after January 1, 2026. (27) "Group B retiree" means a retiree who was initially hired by the city as a firefighter on or after January 1, 2026. 28 (29) "Legacy liability" means the unfunded actuarial accrued liability determined as of December 31, 2024, and for each subsequent calendar year, adjusted as follows: (A) reduced by the city legacy contribution amount for the calend

  amended

• Section 2.02

  the mayor municipality the city treasurer or, if there is no treasurer, the person who by law, charter provision, or ordinance performs the duty of city treasurer; and → (a) a member of the city council city, designated by the mayor; the chief financial officer of the city or a person designated by the chief financial officer; (4) one qualified voter of the city appointed by the city council who: (A) has been a city resident for the preceding five years; (B) has experience in the field of securities investment, pension administration, pension law, or finance; and (C) is not a current or former employee of the city, a current or former employee of the fund, a current or former officer of the city, a current or former officer of the fund, a current or former member of the fund, or a current beneficiary of the fund. (5) one qualified voter of the city appointed by the board of trustees who: (A) has been a city resident for the preceding five years; (B) has experience in the field of securities investment, pension administration, pension law, or governmental finance; and (C) is not a current or former employee of the city, a current or former employee of the fund, a current or former officer of the city, a current or former officer of the fund, a current or former member of the fund, or a current beneficiary of the fund. (b) A person appointed under subsections (4) or (5) of this section shall serve for a term of three years and until appointment of the person's successor.

  amended

• Section 2.05

  mayor and t city treasurer mayor → city council member designated in Section 2.02(1) of this Act Alternatively, the city council member designated in Section 2.02(1) of this Act may designate another member of the board to be the presiding officer. T person designated in Section 2.02(2) of this Act Alternatively, the person designated in Section 2.02(2) of this Act may designate another member of the board to be the secretary-treasurer. person designated in Section 2.02(1) of this Act. Any designations of officer positions made under this section shall remain in effect for one year or until the designated member leaves the board, whichever occurs sooner.

  amended

• Section 2.07

  monthly → , no less frequently than quarterly,

  amended

• Sec. 2.08A EXPERIENCE STUDY; SETTING ACTUARIAL ASSUMPTIONS. (a) At least once every five years, the board of trustees shall cause the board's actuary to conduct an experience study to review the actuarial assumptions and methods adopted by the board of trustees for purposes of determining the actuarial liabilities and actuarially determined contribution rates of the fund. The fund shall notify the city at the beginning of an upcoming experience study by the board's actuary. (b) In connection with the fund's experience study, the city may: (1) conduct a separate experience study using an actuary chosen by the city; (2) have the city's actuary review the experience study prepared by the board's actuary; or (3) accept the experience study prepared by the board's actuary. (c) If the city conducts a separate experience study using the city's actuary, the city shall complete the study not later than the 91st day after the date the fund notified the city of its intent to conduct an experience study. (d) If the city elects to have the city's actuary review the experience study prepared by the board's actuary, the city shall complete the review not later than the 31st day after the date the preliminary results of the experience study prepared by the board's actuary are presented to the board of trustees. (e) If the city chooses to have the city's own experience study performed or to have the city's actuary review the fund's experience study, the board's actuary and the city's actuary shall determine what the hypothetical employer contribution rate would be using the proposed actuarial assumptions from the experience studies and data from the most recent actuarial valuation. (f) If the difference between the hypothetical employer contribution rates determined by the board's actuary and the city's actuary: (1) is less than or equal to two percent of pensionable payroll, no further action is needed and the board of trustees shall use the experience study performed by the board's actuary in determining assumptions; or (2) is greater than two percent of pensionable payroll, the board's actuary and the city's actuary shall have 20 days to reconcile the difference in actuarial assumptions or methods causing the different hypothetical employer contribution rates, and if: (A) as a result of the reconciliation efforts under this subsection, the difference between the employer contribution rates determined by the board's actuary and the city's actuary is reduced to less than or equal to two percentage points, no further action is needed and the board of trustees shall use the experience study performed by the board's actuary in determining actuarial assumptions; or (B) after the 20th business day, the board's actuary and the city's actuary do not reach a reconciliation that reduces the difference in the hypothetical employer contribution rates to an amount less than or equal to two percentage points, an independent third-party actuary shall be retained to opine on the differences in the assumptions made and actuarial methods used by the system's actuary and the city's actuary. (g) The independent third-party actuary retained under this section must be chosen by the city from a list of three actuarial firms provided by the fund. (h) If a third-party actuary is retained under this section, the third-party actuary's findings must be presented to the board of trustees with the experience study conducted by the board's actuary and, if applicable, the city's actuary. If the board of trustees adopts actuarial assumptions or methods contrary to the independent third-party actuary's findings: (1) the fund shall provide a formal letter to the city council for the city and to the Texas Pension Review Board describing the rationale for the retirement board's action; and (2) the board's actuary and executive director shall be made available at the request of the city council or the Texas Pension Review Board to present in person the rationale for the board of

  amended

• Section 5.04

  (b) The three percent factor used in this section may be changed to some other percent if the change: (1) is first approved by the board's actuary; (2) is approved by the board of trustees; (3) applies to one or any combination of the following groups: (A) firefighters who are employed on an active, full-time basis in the fire department at the time of the change; (B) firefighters who begin service with the fire department after the change becomes effective; and (C) members who retire under Section 5.06 of this Act after the change becomes effective; and (4) does not reduce a member's benefit for service credit accumulated before the date of the change. (b-1) In determining whether to approve an increase in the factor under Subsection (b) of this section, the board's actuary shall take into consideration whether the fund has reserves sufficient to enable the payment of a cost-of-living adjustment under Section 9.04(a) of this Act to all current members and survivors at a level that is equal to the average percentage increase in the Consumer Price Index for All Urban Consumers as determined by the United States Department of Labor for the 10 annual periods preceding the proposed effective date of the change. → Group A and three-tenths Group A Group A (b) The service retirement annuity of a Group B member is a monthly payment that is equal to three percent of the Group B member's average monthly compensation multiplied by the Group B member's number of years of service credit and any fraction of a year of service credit.

  amended

• Section 5.05

  person person person → Group A Group A member Group A member Group A member (c) This section does not apply to a Group B member. , if the member is a Group A member, Group A Group A

  amended

• Section 5.07

  person person's person's person → member member's member's member Sec. 7.015. AUTHORITY TO ELECT CERTAIN ACTUARIALLY REDUCED BENEFITS. (a) The Board of trustees shall adopt policies under which a Group B firefighter who is leaving active service may elect to accept an actuarially reduced life annuity benefit upon retirement to provide a joint survivor benefit for the Group B member's surviving spouse. (b) The joint survivor benefit shall be an optional retirement annuity that is certified by the Board of trustees' actuary to be the actuarial equivalent of the annuity provided under Section 5.04 of this Act and the survivor's benefits provided under Section 7.02(b) of this Act. An optional retirement annuity is payable throughout the life of the retiree.

  amended

• Section 7.02

  b → Group A who did not select a Life Annuity option Group A Group A Group A Group A Group A Group A Group A (b) On the death of a Group B retiree who did not select a Life Annuity option, the Group B retiree's surviving spouse is entitled to receive an immediate monthly benefit from the fund of 75 percent of the retirement benefit that was being paid to the Group B retiree if the spouse was married to the Group B retiree at the time of the Group B retiree's retirement c Group A

  amended

• Section 7.09

  Group A Group A Group A Group A Group A Group A Group A Group A Group A Group A Group A Group A Group A Group A Group A (e) This section does not apply to Group B retirees or Group B members.

  amended

• Section 8.01

  Sections 8.02 and 8.03 of this Act → this Article

  amended

• Section 8.02

  municipality's → (a) (b) Group A Group A (c) At the same time that a Group B member makes an election to participate in the DROP, the Group B member must agree in writing to terminate service with the fire department on a date not later than the fifth anniversary of the effective date of the election under this section. (d) city's

  amended

• Section 8.03

  The → (a) (b) A Group A Group A This subsection does not apply to a Group B member. (c) Group A Group A (d) Amounts held in a Group B member's DROP account shall be credited at the end of each calendar month with interest at a rate equal to one-twelfth of three percent until the Group B member's retirement, but only if the return on investment of all assets held by the fund was greater than zero for the preceding calendar year.

  amended

• Section 8.04

  shall be increased as a result of any increase in the formula used in computing service retirement benefits under Section 5.04 of this Act that occurs after the effective date of the member's election to participate in the DROP but before the effective date of the member's retirement; (2) 3 → GROUP A Group A Group A Group A Group A 2

  amended

• Section 8.05

  Group A The DROP account balance of a Group B member shall be credited at the end of each calendar month with interest at a rate equal to one-twelfth of three percent, but only if the return on investment of all assets held by the fund was greater than zero for the preceding calendar year.

  amended

• Section 8.06

  Group A Group A Group A Group A Group A Group A Group A Group A Group A Group A Group A Group A Group A Group A Group A Group A Group A Group A Group A Group A Group A Group A Group A (f) This section does not apply to a Group B member.

  amended

• Section 8.09

  may not be increased as a result of any increase in the formula used in computing service retirement benefits under Section 5.04 of this Act that occurs after the effective date of the member's election to participate in the DROP; (2) 3 4 5 → 2 3 4

  amended

• Section 9.04

  OTHER ADJUSTMENTS a person receiving a retirement or survivor's benefit under this Act is entitled each calendar year to a cost-of-living adjustment of that person's benefit The annual : (A) ; or (B) is increased in accordance with Subsection (b) of this section. (a-4) In determining whether to reduce the collective adjustment amount under Subsection (a-2) of this section, the board's actuary may not take into consideration the cost of future adjustments under this section. (b) The board of trustees may increase the collective adjustment amount under Subsection (a-2) of this section if: (1) the board's actuary has advised the board of trustees that the increase would not impair the financial stability of the fund; and (2) the increase has been approved by the affirmative vote of a majority of the board of trustees. (b-1) In determining whether an adjustment would impair the financial stability of the fund under Subsection (b) of this section, the board's actuary shall take into consideration the cost of future adjustments under this section. (c) Repealed by Acts 2009, 81st Leg., R.S., Ch. 707, Sec. 10, eff. September 1, 2009. (d) Repealed by Acts 2009, 81st Leg., R.S., Ch. 707, Sec. 10, eff. September 1, 2009. → S the board of trustees may approve a cost of living adjustment for retirees and persons receiving survivor benefits under Article 7 of this Act in an amount not to exceed the amount that is determined and Any and comply with Subsections (b) and (c) of this section (b) The board of trustees may not approve a cost-of-living adjustment unless the board's actuary certifies that the funding period required to amortize the total unfunded accrued actuarial liability after the cost-of-living adjustment does not exceed: (1) 25 years for cost-of-living adjustments beginning in years 2026 through 2030; (2) 20 years for cost-of-living adjustments beginning in years 2031 through 2035; (3) 15 years for cost-of-living adjustments beginning in years 2036 through 2040; (4) 10 years for cost-of-living adjustments beginning in years 2041 through 2045; and (5) five years for cost-of-living adjustments beginning in years after 2046-2050. (c) The board of trustees may not approve a cost-of-living adjustment unless the board's actuary certifies that the funded ratio after the cost-of-living adjustment is not: (1) less than 80 percent for any year during the remainder of the amortization period for cost-of-living adjustments beginning in years 2026 through 2035; (2) less than 85 percent for any year during the remainder of the amortization period for cost-of-living adjustments beginning in years 2036 through 2040; (3) less than 90 percent for any year during the remainder of the amortization period or for a period of ten years, whichever is greater, for cost-of-living adjustments beginning in years 2041 through 2045; (4) less than 95 percent for any year during the remainder of the amortization period or for a period of ten years, whichever is greater, for cost-of-living adjustments beginning in years 2046 through 2050; (5) less than 100 percent for any year for a period of ten years for cost-of-living adjustments beginning after 2050. (d) No cost-of-living adjustment that would result in an increase in employer contributions in any year during the remainder of the amortization period, or in any year during the ten years immediately following the cost-of-living adjustment, whichever is longer, shall be effective unless and until approved by the city council of the city.

  amended

• Section 9.10

  the → any applicable Group A Group A Group A Group A Group A Group A Group A Group A Group A (j) If a Group B member is married, spousal consent is required for the Group B member to select a retirement annuity that provides the Group B member's spouse with any benefit less than the joint survivor benefit provided in Section 7.02(b) of this Act upon the Group B member's death. Spousal consent is not required if it is established to the satisfaction of the retirement board that the required consent cannot be obtained because there is no spouse, the spouse cannot be located, or other circumstances exist as prescribed by United States Treasury regulations. Notwithstanding other provisions of this section, the option election or beneficiary designation made by a member and consented to by the member's spouse may be revoked by the member in writing without consent of the spouse at any time before retirement. The number of revocations is not limited. A former spouse's waiver or consent is not binding on a new spouse. An option selection becomes effective on the member's actual retirement date. The member retains the right to change the option selected or the beneficiary designated until the member's actual retirement date, subject to this subsection.

  amended

• Section 10.01

  AND MEMBER municipality an equal to a percentage of the compensation of all members during that month as follows: (1) 19.05 percent, beginning on the first pay date following September 30, 2010, through the pay date immediately preceding September 30, 2011; (2) 20.05 percent, beginning on the first pay date following September 30, 2011, through the pay date immediately preceding September 30, 2012; (3) 21.05 percent, for 24 pay dates of the municipality beginning on the first pay date following September 30, 2012; and (4) 22.05 percent, for all pay dates of the municipality that follow the 24 pay dates referenced in Subdivision (3) of this subsection. (b) Each firefighter shall pay into the fund each month a percentage of the firefighter's compensation for that month as follows: (1) 15.70 percent, for the pay dates of the municipality following September 30, 2010, through the pay date immediately preceding September 30, 2011; (2) 16.20 percent, beginning on the first pay date of the municipality following September 30, 2011, through the pay date immediately preceding September 30, 2012; (3) 16.70 percent, beginning on the first pay date of the municipality following September 30, 2012, through the pay date immediately preceding September 30, 2013; (4) 17.20 percent, beginning on the first pay date of the municipality following September 30, 2013, through the pay date immediately preceding September 30, 2014; (5) 17.70 percent, beginning on the first pay date of the municipality following September 30, 2014, through the pay date immediately preceding September 30, 2015; (6) 18.20 percent, beginning on the first pay date of the municipality following September 30, 2015, through the pay date immediately preceding September 30, 2016; and (7) 18.70 percent, for the first pay date of the municipality following September 30, 2016, and all subsequent pay dates of the municipality. (c) The governing body of each municipality may authorize the municipality to contribute a portion of the contribution required of each firefighter under this section. In that event: (1) the municipality shall appropriate and contribute to the fund each month at the higher percentage of compensation necessary to make all contributions required and authorized to be made by the municipality under this section; and (2) each firefighter's individual account with the fund shall be credited each month as if the firefighter had made the entire contribution required of that firefighter under Section 10.01(b). municipality municipality The members of the fund, by a majority vote in favor of an increase in contributions above 13.70 percent, may increase each firefighter's contribution above 13.70 percent to any percentage recommended by a majority vote of the board of trustees. → city s as determined under this section (b) Beginning with the first pay period of: (1) calendar year 2026, and before the first pay period of calendar year 2027, the city shall contribute an amount equal to the sum of: (A) the city contribution rate, as determined in the initial risk sharing valuation study as of December 31, 2024, multiplied by the pensionable payroll for the applicable pay period; and (B) 1/26 of the city's legacy contribution amount for the 2026 calendar year, as determined and adjusted in the initial risk sharing valuation study conducted under Section 10.01A of this Act; and (2) calendar year 2027, and for each subsequent calendar year, the city shall contribute an amount equal to the sum of: (A) the city contribution rate for the applicable calendar year, as determined in a subsequent risk sharing valuation study conducted and adjusted under Section 10.01B of this Act multiplied by the pensionable payroll for the applicable pay period; and (B) 1/26 of the city's legacy contribution amount for the applicable calendar year, as determined and adjusted in the initial risk sharing valuation study conducted under Section 10.01A of this Act. (c) If the employer elects to change the employer's payroll period to a period other than a biweekly payroll period, the fractional amounts of the employer's legacy contribution stated in subsections (b)(1)(B) and (b)(2)(B) of this section must be adjusted such that the employer's calendar year contribution equals the contribution required under subsection (b)(1) or (b)(2), as applicable. city city

  amended

• Sec. 10.01A. INITIAL RISK SHARING VALUATION STUDY. (a) The board's actuary shall prepare an initial risk sharing valuation study as of December 31, 2024. The initial risk sharing valuation study must: (1) except as otherwise provided by this section, be prepared in accordance with the requirements of Section 10.01B of this Act; (2) be based on the actuarial assumptions that were used by the board's actuary in the valuation completed for the year ended December 31, 2023 using the market value of assets; (3) project the corridor midpoint for the next 25 calendar years beginning with the calendar year that begins on January 1, 2026; (4) include a schedule of city legacy contribution amounts for 25 calendar years beginning with the calendar year that begins on January 1, 2026; and (5) include a city contribution for the calendar years under Sections 10.01(b)(1) and (2) of this Act that begin on January 1, 2026, January 1, 2027, and January 1, 2028 that must be adjusted to reflect the impact of the phase-in prescribed by subsection (b) of this section. (b) The schedule of city legacy contribution amounts under subsection (a)(4) of this section must be determined such that the total annual city legacy contribution amount for the first three calendar years results in a phase-in of the anticipated increase in the employer's contribution rate from the calendar year that begins on January 1, 2026, to the rate equal to the sum of the estimated contribution rate for the calendar year that begins on January 1, 2028, and the rate of pensionable payroll equal to the city legacy contribution amount for January 1, 2026, determined as if there was no phase-in of the increase to the city legacy contribution amount. The phase-in must reflect approximately one-third of the increase each year over the three-year phase-in period. (c) The estimated employer contribution rate for the calendar year that begins on January 1, 2026, must be based on the projected pensionable payroll as determined under the initial risk sharing valuation study required by this section, assuming a payroll growth rate adopted by the board of trustees.

  amended

• Sec. 10.01B. SUBSEQUENT RISK SHARING VALUATION STUDIES. (a) For each calendar year beginning with January 1, 2027, the fund shall cause the board's actuary to prepare a risk sharing valuation study in accordance with this section and actuarial standards of practice. Each risk sharing valuation study must: (1) be dated as of the last day of the calendar year for which the study is required to be prepared; (2) calculate the unfunded actuarial accrued liability of the fund as of the last day of the applicable calendar year, including the liability layer, if any, associated with the most recently completed calendar year; (3) calculate the estimated city contribution rate for the following calendar year; (4) determine the city contribution rate and the member contribution rate for the following calendar year, taking into account any adjustments required under this Article, as applicable; and (5) except as provided by subsection (d) of this section, be based on the assumptions and methods adopted by the board of trustees, if applicable, and be consistent with actuarial standards of practice and the following principles: (A) closed layered amortization of liability layers to ensure that the amortization period for each liability layer begins 12 months after the date of the risk sharing valuation study in which the liability layer is first recognized; (B) an amortization period assigned to each liability layer; (C) amortization of each liability loss layer over a period of 20 years from the first day of the calendar year beginning 12 months after the date of the risk sharing valuation study in which the liability loss layer is first recognized, except that the legacy liability must be amortized over a 25-year period beginning January 1, 2026; (D) amortization of each liability gain layer over: (i) a period equal to the remaining amortization period on the largest remaining liability loss layer; or (ii) if there is no liability loss layer, a period of 20 years from the first day of the calendar year beginning 12 months after the date of the risk sharing valuation study in which the liability gain layer is first recognized; (E) funding of liability layers according to the level percent of payroll method; (F) projection of payroll for purposes of determining the corridor midpoint, employer contribution rate, and city legacy contribution amount using the annual payroll growth rate assumption adopted by the board of trustees; and (G) calculation of the city contribution rate each calendar year without inclusion of the legacy liability. (b) The city may contribute an amount in addition to the scheduled city legacy contribution amounts to reduce the number or amount of scheduled future city legacy contribution payments. If the city contributes an additional amount under this subsection, the board's actuary shall create a new schedule of city legacy contribution amounts that reflects payment of the additional contribution. (c) The city and the board of trustees may agree on a written transition plan for resetting the corridor midpoint, member contribution rates, or employer contribution rates: (1) if at any time the funded ratio of the fund is equal to or greater than 100 percent; or (2) for any calendar year after the payoff year of the legacy liability. (d) The board of trustees may, by rule, adopt actuarial principles other than those required under this section, provided the actuarial principles: (1) are consistent with actuarial standards of practice; (2) are approved by the retirement board's actuary; and (3) do not operate to change the city legacy contribution amount.

  amended

• Sec. 10.01C. ADJUSTMENT TO EMPLOYER CONTRIBUTION RATE IF ESTIMATED EMPLOYER CONTRIBUTION RATE LOWER THAN CORRIDOR MIDPOINT. (a) Subject to subsection (b) of this section, for the calendar year beginning January 1, 2026, and for each subsequent calendar year, if the estimated employer contribution rate is lower than the corridor midpoint, the employer contribution rate for the applicable year is: (1) the corridor midpoint if the funded ratio is less than 90 percent; or (2) the estimated employer contribution rate if the funded ratio is 90 percent or greater. (b) The employer contribution rate may not be lower than the minimum employer contribution rate. (c) If the funded ratio is equal to or greater than 100 percent: (1) all existing liability layers, including the legacy liability, are considered fully amortized and paid; and (2) the city legacy contribution amount may no longer be included in the employer contribution.

  amended

• Sec. 10.01D. ADJUSTMENT TO CITY CONTRIBUTION RATE IF ESTIMATED CITY CONTRIBUTION RATE IS EQUAL TO OR GREATER THAN CORRIDOR MIDPOINT. For the calendar year beginning January 1, 2026, and for each subsequent calendar year, if the estimated employer contribution rate is equal to or greater than the corridor midpoint and: (1) less than or equal to the maximum employer contribution rate for the corresponding calendar year, the employer contribution rate is the estimated employer contribution rate; or (2) greater than the maximum employer contribution rate for the corresponding calendar year, the employer contribution rate is the maximum employer contribution rate.

  amended

• Sec. 10.01E. ADJUSTMENT TO CONTRIBUTION RATES IF ESTIMATED CITY CONTRIBUTION RATE IS GREATER THAN CORRIDOR MAXIMUM. (a) Except as provided by Subsection (b) of this section, if the estimated employer contribution rate is greater than the corridor maximum, the member contribution rate will increase by an amount equal to the difference between the estimated city contribution rate and the maximum city contribution rate. (b) The member contribution rate may not be increased by more than two percent under Subsection (a) of this section. (c) If the estimated employer contribution rate is more than two percentage points above the maximum employer contribution rate, the city and the board of trustees shall enter into discussions to determine additional options for achieving funding soundness.

  amended

• PICKUP OF municipality pursuant to Section 10.01 of this Act The board of trustees may at any time, by majority vote, discontinue the pickup of firefighter contributions by the municipality city. → (a) Beginning on the first pay date of the city following January 1, 2026, each firefighter shall pay into the fund each month 18.70 percent of the firefighter's compensation for that month. The firefighter contribution rate established by this section is subject to adjustment as determined by Section 10.01E of this Act and 10.02(d) of this Section. (b) city under this section (c) The governing body of each city may authorize the city to contribute a portion of the contribution required of each firefighter under this section. In that event: (1) the city shall appropriate and contribute to the fund each month at the higher percentage of compensation necessary to make all contributions required and authorized to be made by the city under this section; and (2) each firefighter's individual account with the fund shall be credited each month as if the firefighter had made the entire contribution required of that firefighter under Section 10.01(b). (d) The members of the fund, by a majority vote in favor of an increase in contributions above 18.70 percent, may increase each firefighter's contribution above 18.70 percent to any percentage and for any period of time recommended by a majority vote of the board of trustees.

  amended

• T → (a) For Group A members, t (b) For Group B members, the fund shall credit interest on December 31 of each year to the account of each firefighter, and of each former firefighter, who has not retired in an amount equal to three percent of the accumulated contributions for Group B members, including previously credited interest, on deposit on January 1 of that year. The fund may not pay interest on a firefighter's or former firefighter's contributions for part of a year or for any period that is more than five calendar years after the date of termination of employment.

  amended

Action History

1. June 20, 2025

   Effective on 9/1/25

2. June 20, 2025

   Signed by the Governor

3. May 26, 2025

   Sent to the Governor

4. May 25, 2025

   Signed in the Senate

5. May 25, 2025

   Signed in the House

6. May 24, 2025

   Reported enrolled

7. May 23, 2025

   House concurs in Senate amendment(s)-reported

8. May 23, 2025

   Text of Senate Amendment(s)

9. May 23, 2025

   Record vote

10. May 23, 2025

    House concurs in Senate amendment(s)

11. May 19, 2025

    Senate Amendments Analysis distributed

12. May 19, 2025

    Senate Amendments distributed

13. May 19, 2025

    Senate passage as amended reported

14. May 19, 2025

    Record vote

15. May 19, 2025

    Passed

16. May 19, 2025

    Read 3rd time

17. May 19, 2025

    Record vote

18. May 19, 2025

    Three day rule suspended

19. May 19, 2025

    Vote recorded in Journal

20. May 19, 2025

    Read 2nd time & passed to 3rd reading

21. May 19, 2025

    Rules suspended-Regular order of business

22. May 19, 2025

    Co-sponsor authorized

23. May 16, 2025

    Placed on intent calendar

24. May 14, 2025

    Committee report printed and distributed

25. May 14, 2025

    Recommended for local & uncontested calendar

26. May 14, 2025

    Reported favorably as substituted

27. May 14, 2025

    Vote taken in committee

28. May 14, 2025

    Considered in public hearing

29. May 08, 2025

    Referred to Finance

30. May 08, 2025

    Read first time

31. May 08, 2025

    Received from the House

32. May 07, 2025

    Reported engrossed

33. May 07, 2025

    Nonrecord vote recorded in Journal

34. May 07, 2025

    Record vote

35. May 07, 2025

    Passed

36. May 07, 2025

    Read 3rd time

37. May 07, 2025

    Nonrecord vote recorded in Journal

38. May 07, 2025

    Passed to engrossment

39. May 07, 2025

    Read 2nd time

40. May 07, 2025

    Placed on Local, Consent, and Res. Calendar

41. May 05, 2025

    Considered in Local & Consent Calendars

42. May 02, 2025

    Comm. report sent to Local & Consent Calendar

43. May 01, 2025

    Committee report distributed

44. May 01, 2025

    Comte report filed with Committee Coordinator

45. April 24, 2025

    Reported favorably as substituted

46. April 24, 2025

    Recommended to be sent to Local & Consent

47. April 24, 2025

    Committee substitute considered in committee

48. April 24, 2025

    Considered in formal meeting

49. April 23, 2025

    Left pending in committee

50. April 23, 2025

    Testimony taken/registration(s) recorded in committee

51. April 23, 2025

    Committee substitute considered in committee

52. April 23, 2025

    Considered in public hearing

53. April 23, 2025

    Scheduled for public hearing on . . .

54. March 19, 2025

    Referred to Pensions, Investments & Financial Services

55. March 19, 2025

    Read first time

56. February 13, 2025

    Filed

Sponsors

• John Bucy III · Primary
• Donna Howard · Cosponsor
• Giovanni Capriglione · Cosponsor

Subjects