Participation in a deferred retirement option plan by members of the retirement systems for police and fire fighters in certain municipalities

Texas House Bill 3280 (HB3280) proposes changes to the Deferred Retirement Option Plan (DROP) for police officers and firefighters in certain municipalities. Currently, members can participate in DROP and continue to accrue retirement benefits while still employed. HB3280 seeks to limit this by stopping the accrual of these benefits for members who have been in DROP for 20 or more years. This change would apply retroactively to members who reached the 20-year threshold on or after January 1, 2018. The bill was introduced by Representative Rafael Anchia on February 25, 2025, and referred to the House Pensions, Investments & Financial Services Committee on March 20, 2025. However, it did not progress further and died in committee.

Supporters of HB3280 argue that the bill promotes fiscal responsibility by capping the duration during which active employees can accrue retirement benefits under DROP. They believe this measure will help ensure the sustainability of pension funds for police and firefighters, preventing potential financial strain on municipal budgets. By limiting prolonged benefit accruals, the bill aims to balance the interests of current employees with the long-term viability of the retirement system.

Opponents of HB3280 contend that the bill unfairly alters retirement benefits for long-serving police officers and firefighters who have planned their careers around existing DROP provisions. They argue that retroactively applying the 20-year cap undermines trust in the stability of retirement plans and could negatively impact employee morale. Critics also express concern that such changes might deter experienced personnel from remaining in service, potentially affecting public safety.