TX SB2162

Restructures the firefighter retirement fund board of trustees from 5 to 7 members, replacing the mayor with a designated city council member and adding two qualified voters with experience in securities, pension administration, or finance

Creates two tiers of retirement benefits: Group A members (hired before January 1, 2026) receive a 3.3% benefit multiplier, while Group B members (hired on or after January 1, 2026) receive a 3.0% multiplier

Establishes a risk-sharing contribution framework with a "corridor" system that sets minimum and maximum city contribution rates based on a corridor midpoint plus or minus 5 percentage points, with the city paying a legacy liability contribution to amortize the unfunded liability over 25 years starting January 2026

Sets firefighter contribution rate at 18.70% of compensation, with potential increases up to 2% if the estimated city contribution rate exceeds the corridor maximum

Limits cost-of-living adjustments for retirees based on funded ratio thresholds (ranging from 80-100% depending on the year) and amortization period requirements (ranging from 5-25 years), requiring city council approval if adjustments would increase employer contributions