Senate Bill No. 2162 seeks to amend the public retirement systems for firefighters in certain Texas municipalities, focusing on enhancing the governance and financial sustainability of the firefighters' relief and retirement fund. The bill introduces new definitions and frameworks for calculating financial metrics related to the fund, such as "actuarial accrued liability" and "city contribution rate." It modifies the composition of the board of trustees by replacing the mayor with a city council member and requiring the inclusion of a qualified city resident with relevant financial experience. Additionally, the bill establishes new requirements for board meetings, mandates experience studies every five years, and clarifies retirement benefits for Group A and Group B firefighters, including options for actuarially reduced life annuity benefits for Group B members.

The bill also introduces significant changes to contribution rates for municipalities, mandating a new city contribution rate based on a risk-sharing valuation study starting in 2026. It sets a fixed firefighter contribution rate of 18.70 percent of monthly compensation, with provisions for adjustments based on the employer contribution rate. The bill specifies interest rates for individual firefighter accounts and outlines conditions for spousal consent regarding optional retirement annuities. Overall, these amendments aim to improve the financial health of the pension fund, ensure transparency in actuarial practices, and provide more flexible retirement options for firefighters while maintaining fiscal responsibility.