Relating to participation in a deferred retirement option plan by members of the retirement systems for police and fire fighters in certain municipalities.

HB 3280 modifies Texas retirement rules for police and fire fighters in certain municipalities who participate in a Deferred Retirement Option Plan (DROP). It changes how retirement pension amounts are credited to DROP accounts, specifically stopping the monthly pension credit for members with 10+ years in DROP while they remain on active duty (effective January 1, 2018). The bill also prevents retroactive crediting of pension amounts to DROP accounts for affected members who stopped receiving credits after January 1, 2018, through August 31, 2025. This law applies to all DROP participants regardless of when they began participation, and takes effect September 1, 2025.