Two bills in the Texas Legislature aim to reform the funding structure of the Austin Firefighters Retirement Fund (AFRF) to address its significant unfunded liabilities, projected to exceed $327 million. Mayor Kirk Watson highlighted the fund's non-compliance with state requirements, placing it on the Texas Pension Review Board watchlist. To avoid a mandatory Funding Soundness Restoration Plan affecting fiscal management, Rep. John Bucy and Sen. Pete Flores proposed reforms in House Bill 2802 and Senate Bill 2162, both supported by the mayor. However, there is disagreement over cost-of-living adjustments between the city's proposed reforms and AFRF's legislative efforts.
The unfunded liability of the Austin Firefighters Retirement Fund is projected to exceed $327 million, prompting legislative reforms to ensure compliance and fiscal soundness.
Legislation has been introduced in both the Texas House and Senate to reform the funding structure of the Austin Firefighters Retirement Fund and avoid a forced restoration plan.
A major point of contention in the bills is the approach to cost-of-living adjustments, which reflects differing priorities between the city's proposed reforms and the AFRF's approach.
AFRF's Executive Director emphasized that ensuring predictable purchasing power protection for retired members is the main priority as they seek pension reform legislation.
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