TX HB2688

Raises the population threshold for municipalities covered by the Firefighters' Relief and Retirement Fund from 1,600,000 to 2,000,000, effectively limiting applicability to larger Texas cities

Modifies normal retirement age definitions for both firefighters and police officers, replacing the "Rule of 70" (age plus years of service equals 70) with either 20 years of service or attaining age 50/60 with at least 10 years of service

Extends the maximum Deferred Retirement Option Plan (DROP) participation period for firefighters from 13 years to 15 years, allowing longer accumulation of retirement benefits while continuing to work

Changes actuarial cost methodology from "ultimate entry age normal" to "entry age normal actuarial cost method" for both firefighter and police pension fund risk sharing valuation studies

Expands DROP eligibility for police officers to all members who have attained normal retirement age, removing previous restrictions based on hire date (October 9, 2004)

Takes effect September 1, 2025, with amendments applying to members who retire, participate in DROP, or terminate service on or after that date