TX SB2345

Applies to firefighters' retirement funds in municipalities with populations of 950,000 to 1,050,000 (updated from 450,000-500,000), expanding board of trustees from 5 to 7 members including a new public member with finance/investment experience appointed by the municipality

Creates two membership tiers: Group A members (employed or retired before December 31, 2025) receive 3.3% benefit multiplier, while Group B members (hired on or after January 1, 2026) receive 3% multiplier with no early retirement option

Establishes a risk-sharing framework with municipal contribution rates determined through annual actuarial studies, including a "corridor" system with minimum and maximum rates tied to a midpoint, and requires a 28-year amortization of the legacy unfunded liability

Implements new cost-of-living adjustments starting January 1, 2027, providing 1% annual increases for retirees meeting age (62 or 67 depending on retirement type) and service requirements, replacing the previous automatic adjustment system

Modifies DROP (Deferred Retirement Option Plan) provisions including interest crediting rates (5% for Group A, 4% for Group B during participation) and eliminates retroactive DROP account establishment for Group B members