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 contributions from the city and the fund membership.

The nut of committee testimony was that the substitute represents a negotiated compromise intended to preserve core benefits for current members while restoring long-term actuarial soundness. Mayor Kirk Watson of Austin, who also serves by statute as chair of the Austin Firefighters Retirement Fund, called the substitute "an agreed to bill" and said it "assures actuarial soundness, and what it does is it respects and it honors the work and the public service of the Austin Firefighters." He thanked committee staff and the bill sponsors for facilitating the agreement.

Actuarial and fund representatives told the committee the substitute follows models used for earlier reforms to the Austin Police Retirement Fund and the City of Austin employee retirement plan. Anumeha Kumar, executive director of the Austin Firefighters Retirement Fund, said the fund "fully supports the bill" and described the measure as a fiscally responsible path to sustainability. Ed Vanino, chief financial officer for the city of Austin, described the proposal as a "fair agreed to bill" that shares future funding risk between the city and fund members.

Trustees and retired members also testified in support. Doug Fowler, a trustee and retiree, said the legislation resulted from "over 18 months of negotiation and collaboration" and described the funding model as offering flexibility responsive to market conditions. Bob Nix, president of the Austin Firefighters Association, said membership voted by about 80% to lower benefits and that the voluntary approach will save the city and its citizens "hundreds of millions of dollars" by avoiding a mandatory restoration plan.

The substitute would also change board composition to add a community member with financial or pension experience and a new elected member seat. Committee staff noted that the Pension Review Board actuarial analysis and the Legislative Budget Board fiscal note were prepared on the introduced version of the bill rather than the agreed committee substitute.

Committee members closed public testimony and, later in the session, the committee adopted the committee substitute without objection and left the bill pending while awaiting related House action. No roll-call vote was recorded on the substitute adoption in committee.

The bill now awaits further action in the Senate once the House companion is available; committee members said they would defer final reporting until the related House bill is ready.