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 adds new terms such as "default rate" and "months of service." It ensures that health benefits provided by the fund are exempt from garnishment and legal processes, while also protecting the fund's assets from attachment or forced sale. Additionally, the governing board of the fund is established as independent from municipal control, enhancing the administration of health benefits for public safety personnel.

The bill further outlines provisions for retiree contributions, particularly for those with less than 360 months of service, allowing for lump-sum payments instead of monthly contributions. It mandates that contributions to the fund must be made within 30 days of returning from unpaid leave, with municipalities required to match voluntary contributions. The bill also addresses health and medical benefits for married members, allowing conditional waivers and reinstatement of eligibility after divorce. The board is empowered to modify retiree health plans to allow surviving spouses to maintain coverage post-remarriage, even if it increases the fund's actuarial unfunded liability. These changes are set to take effect on October 1, 2025.