89R15746 KFF-D     By: Y. Davis of Dallas H.B. No. 4280       A BILL TO BE ENTITLED   AN ACT   relating to deferred retirement option plans under the public   retirement systems for police and firefighters in certain   municipalities.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Part 4, Article 6243a-1, Revised Statutes, is   amended by adding Section 4.081 to read as follows:          Sec. 4.081.  DROP EXCLUDED FROM ACTUARIAL ANALYSIS OF FUND;   SEPARATE TREATMENT REQUIRED.  Notwithstanding any other law, an   actuarial valuation or other continuing actuarial observation of   the assets of the fund under this article or other law may not treat   assets or liabilities associated with DROP as assets or liabilities   of the fund, including for purposes of determining the period   required to amortize the unfunded actuarial accrued liability of   the fund. The pension system's qualified actuary shall separately   account for the assets or liabilities associated with DROP.          SECTION 2.  Section 6.14(e-1), Article 6243a-1, Revised   Statutes, is amended to read as follows:          (e-1)  The board may adopt a shorter period for annuitizing   DROP account balances under Subsection (e) of this section [if the   pension system's qualified actuary determines that the shorter   period will not cause the pension system's amortization period to   exceed 25 years].          SECTION 3.  This Act takes effect immediately if it receives   a vote of two-thirds of all the members elected to each house, as   provided by Section 39, Article III, Texas Constitution.  If this   Act does not receive the vote necessary for immediate effect, this   Act takes effect September 1, 2025.