S.B. No. 2345 seeks to amend the retirement systems for firefighters in certain Texas municipalities by adjusting the eligibility criteria for the Firefighters Relief and Retirement Fund. The bill raises the population range for eligible municipalities from 450,000-500,000 to 950,000-1,050,000 and introduces new definitions to clarify the fund's financial and operational aspects. It also enhances the governance of the fund by increasing the number of firefighter and retiree representatives on the board of trustees from three to four and adding a public member appointed by the municipality's governing body. The bill establishes guidelines for maintaining the fund's qualified status under federal tax law and allows the board to adopt an operational name different from the one prescribed by existing law.

Additionally, the bill introduces significant changes to the administration of the board, including a four-year term for board members, the ability to conduct elections electronically, and a requirement for experience studies every five years. It clarifies the confidentiality of member information and outlines the process for determining membership categories. The bill also addresses retirement benefits, including provisions for military service credit, a Deferred Retirement Option Plan (DROP), and annual cost-of-living adjustments for certain members and survivors. Furthermore, it specifies contribution rates for municipalities and firefighters, mandates risk-sharing valuation studies, and updates the governance structure of the board, including the appointment process for new members. Overall, the bill aims to modernize and improve the governance and financial management of firefighter retirement systems in Texas municipalities.