Senate Bill No. 1527 seeks to amend the public retirement systems for police and firefighters in certain Texas municipalities by introducing new definitions and administrative requirements. A key feature of the bill is the establishment of an "actuarially determined contribution rate," which will be calculated as a percentage of members' projected aggregate computation pay for the fiscal year. The bill mandates compliance with Chapter 802 of the Government Code, rendering any previously adopted plans or rules unenforceable. Additionally, it requires city council and board approval for actions that would increase the pension system's liabilities, such as settling lawsuits or increasing benefits.

The bill also outlines a new contribution structure, including a five-year step-up period for contributions starting in October 2024, and a reconciliation process for actuarially determined contribution rates between the pension system's actuary and the city's actuary. It allows the city council to waive certain funding requirements if the fund is projected to be fully funded in over 30 years and caps city contributions for the fiscal years ending September 30, 2025, through September 30, 2029. The bill repeals specific sections of Article 6243a-1 and establishes that the new provisions will apply only to actions taken after the effective date of the Act, which will take effect immediately upon a two-thirds vote or on September 1, 2025, if not passed.