H.B. No. 2802 amends the Texas Civil Statutes regarding retirement systems for firefighters in certain municipalities, specifically updating the population threshold for cities eligible for the Firefighters Relief and Retirement Fund from 450,000-950,000 to 500,000-1,050,000. The bill introduces new definitions related to the fund's operations, such as "actuarial accrued liability" and "annual investment return," to enhance clarity. It also revises the composition of the board of trustees to include the mayor or a designated member, the chief financial officer or a representative, four members selected by firefighters and retirees, and one public member appointed by the governing body. Additionally, the bill establishes criteria for public members, 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, which includes current retirees and firefighters employed by December 31, 2025, and Group B, which includes those starting employment after January 1, 2026. It introduces provisions for military service credit, retirement eligibility, and benefits for surviving spouses and children, with distinctions between the two groups. Key amendments also address the Deferred Retirement Option Plan (DROP), specifying benefits for Group A members and establishing procedures for participation. The bill mandates annual risk-sharing valuation studies starting in 2025 to inform municipal contribution rates and outlines new governance structures for the board of trustees, including the appointment of an executive director and actuary, while repealing outdated provisions. Overall, the bill aims to modernize and clarify the pension system for firefighters in Texas.