Relating to deferred retirement option plans under the public retirement systems for police and firefighters in certain municipalities.

HB 4280 modifies how Texas pension systems handle Deferred Retirement Option Plans (DROP) for police and firefighters in certain municipalities. It requires pension funds to separately track DROP-related assets and liabilities instead of including them in standard fund calculations, including for determining debt repayment timelines. The bill also allows pension boards to shorten the period for paying out DROP balances, provided the overall pension debt repayment period remains under 25 years. This change directly affects municipal pension systems serving police and firefighters in participating Texas cities.