Amend HB 2427 (house committee printing) by inserting the 
following SECTIONS, appropriately numbered, and renumbering 
SECTIONS of the bill accordingly:
	SECTION ____.  Subchapter A, Chapter 824, Government Code, 
is amended by adding Section 824.007 to read as follows:
	Sec. 824.007.  BIENNIAL COST-OF-LIVING ADJUSTMENT.  (a)  The 
amount of a monthly service retirement benefit, disability 
retirement benefit, or death benefit paid under this chapter is 
increased to include an annual cost-of-living adjustment in 
accordance with this section.
	(b)  Effective September 1 of each odd-numbered year, the 
board of trustees shall recompute the amount of a benefit paid 
monthly under this chapter by applying a five percent 
cost-of-living adjustment to the monthly amount otherwise required 
to be paid as determined in accordance with this chapter, including 
the amount of any previous cost-of-living adjustment made under 
this section or other increase required by law.
	SECTION ____. Not later than September 1, 2007, or as soon as 
practicable after that date, the Board of Trustees of the Teacher 
Retirement System of Texas shall make the first cost-of-living 
adjustment under Section 824.007, Government Code, as added by this 
Act.