S.B. No. 2162 amends the public retirement systems for firefighters in Texas municipalities, introducing new definitions and clarifications related to the firefighters' relief and retirement fund. The bill establishes a framework for calculating financial metrics, such as amortization periods and rates, and outlines the responsibilities and composition of the board of trustees, which now includes a city council member and a qualified voter with relevant experience. Key changes include the removal of the mayor from the board and the introduction of a requirement for board members to have expertise in finance and pension administration. The bill also modifies the frequency of board meetings from monthly to at least quarterly and mandates an experience study every five years to review actuarial assumptions.

Additionally, the bill revises retirement benefits for Group A and Group B firefighters, allowing for options such as actuarially reduced life annuities and establishing specific eligibility criteria for early retirement. It introduces new provisions for the Deferred Retirement Option Plan (DROP) and clarifies the interest rates applicable to DROP accounts for both groups. The bill also outlines a new city contribution rate for municipalities, which will be phased in starting in 2026, and establishes guidelines for adjusting employer contribution rates based on the pension fund's financial health. Overall, S.B. No. 2162 aims to enhance the governance, financial stability, and sustainability of the retirement system for firefighters in Texas.