Senate Finance committee adopts substitute for bill to reform Austin firefighters’ pension

The Senate Committee on Finance on Oct. 12 adopted a committee substitute for Senate Bill 2345 that would reform the Austin Firefighters Retirement Fund through a negotiated, voluntary funding-soundness restoration plan agreed to by the city of Austin and the retirement fund.

The substitute, described to the committee as an "agreed to bill," would create a new reduced-benefit tier for firefighters hired on or after Jan. 1, 2026; modify the cost-of-living-adjustment structure for current retirees with stronger financial guardrails for future COLAs; and establish an actuarially determined employer contribution model to pay down legacy liabilities over a 30-year period. Committee staff said the proposal would amortize a legacy liability of $327,000,000 plus $31,000,000 related to 2024 asset losses through increased…