TX HB4873

Applies to firefighters' retirement funds in municipalities with populations between 950,000 and 1,050,000 (updated from previous 450,000-500,000 threshold)

Creates two membership tiers: Group A members (employed or retired before January 1, 2026) receive a 3.3% benefit multiplier, while Group B members (hired on or after January 1, 2026) receive a 3% multiplier and are ineligible for early retirement

Implements a risk-sharing framework requiring annual actuarial valuation studies to determine municipal contribution rates within a corridor ranging from five percentage points below to seven percentage points above a projected midpoint, with a 28-year amortization period for legacy unfunded liabilities

Establishes annual 1% cost-of-living adjustments for retirees beginning at age 62 (or age 67 for early retirees and certain DROP participants) and five years after retirement, replacing the previous adjustment structure

Expands the board of trustees from five to seven members by adding a fourth elected member position and one public member with finance or investment experience appointed by the municipality's governing body