Amend CSHB 7 by striking SECTION 15.05 of the bill (page 16, 
line 50, through page 17, line 37, Senate committee printing) and 
substituting the following:
	SECTION 15.05.  Section  1575.004, Insurance Code, as 
amended by Chapter 1231, Chapter 201, and Chapter 1276, Acts of the 
78th Legislature, Regular Session, 2003, is reenacted and amended 
to read as follows:
	Sec. 1575.004.  DEFINITION OF RETIREE.  (a)  In this chapter, 
"retiree" means:
		(1)  an individual not eligible for coverage under a 
plan provided under Chapter 1551 or 1601 who:
			(A)  is at least 65 years of age and has taken a 
service retirement under the Teacher Retirement System of Texas 
with at least 10 years of service credit in the system, which may 
include up to five years of military service credit, but which may 
not include any other service credit purchased for equivalent or 
special service credit [for actual service in public schools in 
this state]; [or]
			(B)  was employed in actual service in public 
schools in this state during or before the 2003-2004 school year and 
at the time of retirement meets the requirements for eligibility as 
a retiree as those requirements existed on August 31, 2004;
			(C)  purchased equivalent or special service 
credit,  and:          
				(i)  had that service credited on or before 
August 31, 2003;       
				(ii)  retires on or before August 31, 2009;                          
				(iii)  at the time of retirement, meets the 
requirements for eligibility for the group program for coverage as 
a retiree as those requirements existed on August 31, 2004, 
including using up to five years of out-of-state service toward 
retiree eligibility; and
				(iv)  has taken a service retirement under 
the Teacher Retirement System of Texas without reduction for early 
age;
			(D)  has taken a service retirement under the 
Teacher Retirement System of Texas and who has at least 10 years of 
service credit in the system, which may include up to [for actual 
public service in the public schools in this state or has at least 
five years of service credit for actual public service in the public 
schools in this state and has] five years of military service credit 
but which may not include any other service credit purchased for 
equivalent or special service credit [credited in the Teacher 
Retirement System of Texas], and the sum of the individual's age and 
amount of service credit described by this paragraph [earned for 
service in the public schools of this state] equals or exceeds the 
number 80; or
			(E)  has taken a service retirement under the 
Teacher Retirement System of Texas on or before August 31, 2004, and 
who is enrolled in the group program on August 31, 2004; or
		(2)  an individual who:                                                       
			(A)  has taken a disability retirement under the 
Teacher Retirement System of Texas; and
			(B)  is entitled to receive monthly benefits from 
the Teacher Retirement System of Texas.
	(b)  Each year of service credit in the system that an 
individual would have received but for the individual's 
participation in the deferred retirement option plan under 
Subchapter I, Chapter 824, Government Code, is considered a year of 
service credit solely for the purpose of meeting the definition of 
"retiree" under Subsection (a)(1)(A) or (D).
	(c)  In this section, "public school" has the meaning 
assigned by Section 821.001, Government Code.