The approval sends the bill to Governor Greg Abbott's desk to be signed into law.
"Today is a historic day because we have done what many said was impossible," said Mayor Sylvester Turner in a statement. "Today's significance is not marked merely by what we have accomplished, but by what we can achieve now that we have lifted a significant barrier to progress in our city."
Turner initially warned that as many as 2,200 municipal workers could be laid off if state lawmakers did not approve the city's pension plan.
An amended plan allowed firefighters to retain more of their benefits.
The city's plan pays off $8.1 billion in unfunded liabilities for pensions without raising taxes, according to Turner's office.
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