Member Education
Introduction to the Denton Firemen's
Relief & Retirement Fund
A plain-language guide to your pension: how it works, where it stands, and what it means for your retirement.
A plain-language guide to your pension: how it works, where it stands, and what it means for your retirement.
The Denton Firemen's Relief and Retirement Fund (DFRRF) is a defined benefit pension plan that provides a guaranteed monthly retirement income to Denton firefighters and their survivors. Unlike a 401(k) or similar savings plan, your retirement benefit is calculated by a formula based on your years of service and salary. The fund holds and invests the assets needed to pay those benefits.
The DFRRF is a single-employer plan, which means it covers only Denton firefighters. It is entirely separate from the Texas Municipal Retirement System (TMRS) that covers other City of Denton employees. The fund is governed by its own local Board of Trustees and managed by a dedicated fund administrator.
Texas firefighters have had locally governed pension systems since 1937. The DFRRF exists because of a specific Texas state law that gives fire departments the authority to create and run their own retirement plans.
The law that authorizes our fund was originally passed in 1937 by the 45th Texas Legislature under the name "Firemen's Relief and Retirement Fund." In 1989, it was restated under Article 6243e of the Texas Civil Statutes and renamed the Texas Local Fire Fighters Retirement Act, or TLFFRA. Today, 42 retirement systems across Texas operate under this law.
TLFFRA provides general guardrails for fund management (including some investment restrictions), but it leaves most decisions about plan design, contribution rates, benefit levels, and specific investments to each system's local board. Board composition is set by statute: a mix of active firefighter trustees elected by members and appointees from the city. TLFFRA systems are entirely locally funded, meaning the money comes from member and city contributions plus investment returns. There is no state backstop.
The PRB was established in 1979 as the state's oversight body for public retirement systems. It monitors the financial and actuarial health of 99 actuarially funded defined benefit plans in Texas, including all 42 TLFFRA systems, along with roughly 250 smaller defined contribution and volunteer plans. The PRB does not manage or invest fund assets. Its role is to review actuarial soundness, enforce reporting requirements under Chapter 802 of the Texas Government Code, provide technical assistance, and recommend policy and legislation. The PRB also runs the mandatory trustee education program (the Minimum Educational Training, or MET, that every trustee must complete).
TEXPERS is a nonprofit membership organization that represents the interests of public pension funds across Texas. TEXPERS provides continuing education, legislative advocacy, and networking for trustees and administrators. The DFRRF is a TEXPERS member system, and our trustees attend the annual TEXPERS conference for education and peer benchmarking.
Texas Legislature creates the Firemen's Relief and Retirement Fund law, allowing local fire departments to establish their own pension systems.
Texas Pension Review Board (PRB) established as the state oversight agency for all public retirement systems.
The law is restated under Article 6243e and renamed the Texas Local Fire Fighters Retirement Act (TLFFRA).
DFRRF benefit rate set at 2.59% per year of service (Plan Document Section B.2, effective January 1, 2011).
Meet and Confer agreement codifies the 18.5% city contribution floor and 6.75% assumed rate of return.
The standard measure of a pension fund's health is its funded ratio: the ratio of assets on hand to the present value of benefits owed. A fund at 100% or higher is considered fully funded. Anything below 80% is typically flagged as a concern by actuaries and rating agencies.
For context, here is how the DFRRF compares to statewide averages from the PRB's 2026 TLFFRA report:
The median is a more reliable benchmark than the average because a few severely underfunded systems (some below 50%) pull the average down.
Your retirement benefit is calculated using a simple formula. The key variable is the benefit rate, which is 2.59% per year of service as of January 1, 2011 (Plan Document Section B.2). The pension portal currently displays 2.55%, which is a known software error.
Example: A firefighter with 25 years of service and a final average salary of $100,000 would receive (25 × 0.0259 × $100,000) / 12 = $5,396 per month.
| Provision | Detail |
|---|---|
| Benefit Rate | 2.59% per year of service (Plan Document Section B.2, effective January 1, 2011) |
| Final Average Salary (FAS) | Average of highest 36 consecutive months of compensation |
| Normal Retirement | Age 50 with 20 years of service |
| Vesting | 10 years (partial benefit if you leave before retirement eligibility) |
| Member Contribution | 12.6% of compensation (deducted from paycheck) |
| City Contribution | 18.5% of compensation (separate from member deduction) |
| Retro DROP | Available at age 52 with 22 years; max 48 months of lump sum accumulation |
| COLA | Ad hoc, based on the financial condition of the fund as determined by the actuary |
| Social Security | Yes. Denton firefighters participate in Social Security in addition to the DFRRF pension. |
A note on contributions: The 12.6% deducted from your paycheck is your member contribution. The 18.5% the City contributes is a separate, additional amount paid by the City on top of your salary. These are two distinct funding streams, not the same money.
Denton firefighters are sometimes asked, "Wouldn't you be better off with a 401(k)?" or "How does your pension compare to what other City employees get?" The table below lines up the three types of retirement plans side by side.
| Feature | DFRRF Denton Firefighters | TMRS Other City Employees | Typical 401(k) Private Sector |
|---|---|---|---|
| Plan Type | Defined Benefit | Hybrid (cash balance + annuity at retirement) | Defined Contribution |
| Benefit Guarantee | Yes, formula-based | Annuity at retirement based on accumulated balance | No guarantee; depends on market |
| Employee Contribution | 12.6% of pay | 7% of pay | Typically 6 to 10% (voluntary) |
| Employer Contribution | 18.5% of pay (minimum) | ~11.2% of pay (actuarially determined, 2:1 match at retirement) | Typically 3 to 6% match |
| Retirement Eligibility | Age 50 + 20 years | Age 60 + 5 years, or 20 years at any age | Age 59½ (penalty-free withdrawals) |
| Benefit Formula | 2.59% × FAS × years of service | Annuity purchased from accumulated contributions + city matching credits + interest | Whatever your account balance buys at retirement |
| Investment Risk | Fund bears the risk | TMRS bears the risk (pooled statewide) | Employee bears all risk |
| Longevity Protection | Lifetime payments; cannot outlive benefit | Lifetime annuity | Account can be depleted |
| Social Security | Yes | Yes | Yes |
| Survivor Benefits | Joint & 2/3 to spouse (default); death-in-service benefits | Optional survivor annuity | Beneficiary inherits account balance |
| Portability | Partially vested benefit after 10 years; refund of contributions if <10 years | Vested after 5 years; refund option | Fully portable; rolls to IRA |
A firefighter hired at age 25, retiring at age 50 with 25 years of service. Final average salary of $100,000 per year. For the TMRS estimate, we assume a 7% employee contribution with a 2:1 city match at retirement, credited with 5% annual interest, purchasing an annuity at standard TMRS rates. For the 401(k), we assume a 7% employee contribution with a 4% employer match on a $100,000 salary, growing at a 7% annual average return, converted to an annuity using the 4% rule.
Important: These estimates are simplified illustrations, not benefit projections. Actual TMRS benefits depend on credited interest and annuity factors at the time of retirement. Actual 401(k) balances depend on contribution rates, investment returns, and fees. Social Security benefits vary by earnings history. Consult the pension portal, TMRS member services, or a qualified financial advisor for personalized projections.
Use the retirement benefit calculator to estimate your monthly benefit under different scenarios.
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