TX HB3521

Modifies the definition of "catastrophic injury" for disability benefits to require physical external events and explicitly excludes infectious diseases, noninfectious diseases from repeated exposure, anxiety disorders including PTSD, and soft-tissue back/neck/spine injuries that do not result in paralysis

Expands eligibility for the pension system to include appointed positions in addition to classified positions in the police department, and revises pension calculations for members hired after October 9, 2004, increasing the multiplier from 2.25% to 2.75% of final average pay for the first 20 years of service for those who complete at least 20 years

Reduces catastrophic injury disability benefits from 100% to 90% of final average pay and establishes new requirements for disability pension recipients to annually report earned income, with benefits reduced by $1 for every $2 earned from other employment

Creates new restrictions on DROP (Deferred Retirement Option Plan) participants who are rehired, requiring their pension and DROP distributions to be suspended during subsequent service while still making contributions, with no additional service credit accrued

Prohibits individuals who are officers, employees, or receive compensation from employee or retiree organizations from serving on the pension board, and caps pension calculations for members in positions above commander based on the highest classified position's pay