H.B. No. 2802 amends the Texas Civil Statutes regarding the administration and benefits of retirement systems for firefighters in certain municipalities. The bill raises the population threshold for cities eligible for the Firefighters Relief and Retirement Fund from 450,000 to 1,050,000 and introduces new definitions to clarify financial management aspects of the retirement system. It modifies the board of trustees' composition to include a member designated by the mayor and a public member appointed by the governing body, while also ensuring the fund maintains its qualified status under Section 401(a) of the Internal Revenue Code. Additionally, the bill establishes criteria for public members of the board, modifies the election process to allow electronic nominations, and changes the term length for elected members from three to four years.

The bill further delineates two membership groups within the firefighter pension fund: Group A and Group B, with specific eligibility criteria and benefits for each. It introduces provisions for military service credit, retirement benefits, and survivor benefits, particularly for Group A members. The Deferred Retirement Option Plan (DROP) is also addressed, with new provisions for participation and benefit calculations, while establishing a contribution structure for municipalities and firefighters. The bill mandates annual risk-sharing valuation studies to determine contribution rates and enhances the governance structure of the board of trustees, including the appointment of an executive director. Overall, the bill aims to improve the financial stability and operational transparency of firefighter pension funds while providing clearer guidelines for contributions and benefits.