TX HB4280

Requires actuarial valuations of municipal police and firefighter pension funds to exclude Deferred Retirement Option Plan (DROP) assets and liabilities from the main fund analysis, including when calculating the amortization period for unfunded liabilities

Mandates that the pension system's qualified actuary separately account for all DROP-related assets and liabilities

Removes the requirement that pension boards obtain actuary approval before adopting shorter periods for annuitizing DROP account balances (previously required confirmation that changes wouldn't push amortization beyond 25 years)

Applies to public retirement systems for police and firefighters in certain municipalities under Article 6243a-1, Revised Statutes

Takes effect immediately with two-thirds legislative vote, otherwise September 1, 2025