On September 6, 2023, Austin Firefighters Retirement Fund received a Funding Soundness Restoration Plan (FSRP) “At Risk” notification from the Texas Pension Review Board (PRB). In response to the FSRP notification, the AFRF Board took a proactive stance to develop a Voluntary FSRP in advance of triggering the mandatory requirement, which would have incurred additional challenges for the Fund. After eighteen months of negotiations with the City of Austin, an agreement was reached for a joint legislative bill.
In the 89th Texas Legislative Session, House Bill 2802 was carried forward by Representative Bucy and was co-sponsored by Senator Schwertner. The bill reflected extensive actuarial research and compromise among all key stakeholders. During its legislative hearings, the bill received testimony of support from representatives of the AFRF Board, the City of Austin, the Austin Firefighter Association (AFA Local 975), and the Austin Retired Firefighters Association (ARFFA), with no testimony of opposition. The bill passed the House and the Senate after receiving a unanimous vote of approval in each corresponding committee. HB 2802 was signed by Governor Abbott on June 20, 2025.
The pension reform bill will become law as of September 1, 2025, with most provisions specified to take effect January 1, 2026. The bill will create a second benefit tier for new hires and will replace the fixed employer contribution rate with an actuarially determined rate. Additional provisions and specific bill language can be found within the resources below. For updates on bill implementation, please refer to the AFRF calendar for upcoming board meetings and member informational sessions.
HB 2802 Bill Summary
HB 2802 Texas Legislature Online
AFRF Plan Sustainability Page