S.B. No. 2318 amends existing laws governing retirement health care plans for firefighters and police officers in certain Texas municipalities. The bill introduces a clearer definition of "Beneficiary," which now includes retirees and their eligible dependents, and establishes new terms such as "Default rate" and "Months of service." It mandates that the retiree health plan must be established under this Act by a specified date and outlines a governance structure for the fund that is independent of municipal control, detailing the composition of the board of trustees. Additionally, the bill addresses exemptions from legal processes for health benefits and fund assets, and grants the board authority to administer the fund.

The legislation also sets new requirements for member contributions, stipulating that contributions must be made within 30 days after a member returns from unpaid leave, with municipalities required to match voluntary contributions. It allows retirees to conditionally waive eligibility for health benefits upon retirement and reinstates eligibility within 30 days of a marriage dissolution. The board is empowered to modify the retiree health plan to permit surviving spouses to maintain coverage after remarriage, even if it increases the fund's actuarial unfunded liability. The bill is scheduled to take effect on October 1, 2025.