Amend SB 900 as follows:
      (1)  In SECTION 3 of the bill, amended Section 12(d)(1),
Article 6243g, Vernon's Texas Civil Statutes, strike "compounded"
(introduced version, page 3, line 8).
      (2)  In SECTION 3 of the bill, amended Section 12(d)(1),
Article 6243g, Vernon's Texas Civil Statutes, between "Section
11(g)" and "of this Act", insert "or Section 31" (introduced
version, page 3, line 8).
      (3)  Strike SECTION 9 of the bill (introduced version, page
16, line 20, through page 17, line 22) and substitute the
following:
      SECTION 9.  Sections 11(b) and (g), Chapter 358, Acts of the
48th Legislature, 1943 (Article 6243g, Vernon's Texas Civil
Statutes), are amended to read as follows:
      (b)  Effective July 1, 1998, the amount of the monthly
pension for each Group A member shall equal the member's average
monthly salary multiplied by two and one-quarter percent (2-1/4%)
for each of the member's first twenty (20) years of credited
service and two and three-quarters percent (2-3/4%) for each
additional year of credited service of the member.  From September
1, 1997, through June 30, 1998, the <The> amount of the monthly
pension for each such Group A member shall equal the member's
average monthly salary multiplied by two percent (2%) for each of
the member's first twenty (20) years of credited service and two
and one-half percent (2-1/2%) for each additional year of credited
service of such member.  For purposes of this Subsection, such
average salary shall be computed by adding together the
seventy-eight (78) highest biweekly salaries paid to a member
during his period of credited service and dividing the sum by
thirty-six (36). Provided, however, that no Group A member's
pension shall be more than eighty percent (80%) of such average
salary;  and no Group A member's pension shall be less than Eight
Dollars ($8) a month for each year of credited service, or One
Hundred Dollars ($100) a month total pension, whichever is the
greater amount.
      (g)  Pensions <Effective January 1, 1992, pensions> for all
Group A members or their survivors shall be adjusted annually
upward by three and one-half percent (3-1/2%), not compounded <or
downward in accordance with the percentage change in the Consumer
Price Index for All Urban Consumers (CPI) for the preceding year as
determined by the United States Department of Labor. The adjusted
pension may never be less than the basic pension that the retired
member or survivor would otherwise be entitled to receive without
regard to changes in the CPI. The adjusted pension may never be
greater than the basic pension plus increases of not to exceed four
percent (4%) annually, not compounded, notwithstanding a greater
increase in the CPI>.
      (4)  Strike SECTION 12 of the bill (introduced version, page
20, line 20, through page 21, line 7) and substitute the following:
      SECTION 12.  Section 31, Chapter 358, Acts of the 48th
Legislature, 1943 (Article 6243g, Vernon's Texas Civil Statutes),
is amended to read as follows:
      Sec. 31.  POSTRETIREMENT ADJUSTMENTS. Pensions for all Group
B members or their survivors <All pensions> shall be adjusted
annually upward by three and one-half percent (3-1/2%), not
compounded <or downward in accordance  with the percentage change
in the Consumer Price Index for All Urban Consumers (CPI) for the
preceding year as determined by the United States Department of
Labor.  The adjusted pension shall never be less than the basic
pension which the retired member or survivor would otherwise be
entitled to receive without regard to changes in the CPI.  The
adjusted pension shall never be greater than the basic pension plus
increases of not to exceed four percent (4%) annually, not
compounded, notwithstanding a greater increase in the CPI>.