H.B. No. 2688 amends the public retirement systems for firefighters and police officers in municipalities with populations of at least 2,000,000, introducing significant changes to retirement eligibility and funding methods. The definition of "normal retirement age" is updated to allow firefighters hired after 2017 to retire at age 50 with a minimum of 10 years of service, replacing the previous requirement of a combined age and service total of 70. The bill also establishes a new actuarial cost method for calculating contributions and benefits, aiming to enhance the sustainability and equity of the retirement systems.

Additionally, the bill modifies the Deferred Retirement Option Plan (DROP) by limiting participation to a maximum of 15 years for members who join after the 2017 effective date and repeals certain provisions related to appeals of pension benefits committee decisions. It updates the actuarial valuation study requirements to improve transparency and accountability in managing retirement funds. The amendments to Sections 9A(a) and 14(b) of Article 6243g-4 include a risk-sharing valuation study and the replacement of "ultimate entry age normal actuarial" with "cost." The bill also allows members who have reached normal retirement age to participate in DROP, stipulates that DROP elections cannot be revoked once accepted, and establishes that this Act will take precedence over conflicting legislation from the 89th Legislature. The effective date for the bill is set for September 1, 2025.