H.B. No. 2802 seeks to amend the retirement systems for firefighters in certain Texas municipalities by adjusting the population threshold for eligibility to the Firefighters Relief and Retirement Fund from 450,000-500,000 to 950,000-1,050,000. The bill introduces new definitions related to the fund, such as "actuarial accrued liability" and "municipal contribution rate," to clarify financial and operational aspects. It also allows the board of trustees to adopt a different operating name for the fund and emphasizes maintaining the fund's qualified status under the Internal Revenue Code. Additionally, the bill includes technical adjustments to ensure compliance with actuarial standards and enhances the governance structure by adding a public member to the board and allowing electronic nominations and elections.

The bill further modifies membership classifications, retirement benefits, and eligibility criteria, creating two groups of members based on employment status as of December 31, 2025. It specifies conditions for military service credit, average monthly salary calculations, and benefits for surviving spouses and dependent children. Key amendments include provisions for the Deferred Retirement Option Plan (DROP), establishing interest crediting for DROP accounts, and clarifying eligibility for cost-of-living adjustments. The bill also addresses benefits payable to alternate payees under qualified domestic relations orders and modifies the contribution structure for municipalities and firefighters, including a phased approach for municipal legacy contributions. Overall, H.B. No. 2802 aims to enhance the financial stability and clarity of firefighter retirement systems while ensuring equitable distribution of benefits.