Amend CSSB 1846 (house committee printing) by striking all 
below the enacting clause and substituting the following:
	SECTION 1.   Subsection (a), Section 825.404, Government 
Code, is amended to read as follows:
	(a)  During each fiscal year, the state shall contribute to 
the retirement system an amount equal to at least 6.7 [six] and not 
more than 10 percent of the aggregate annual compensation of all 
members of the retirement system during that fiscal year.
	SECTION 2.  Subsection (e), Section 825.4092, Government 
Code, is amended to read as follows:
	(e)  The amounts required to be paid under Subsections (b) 
and (c) are not required to be paid by a reporting employer for a 
retiree who retired from [was reported under] the retirement system 
[rules in effect for the report month of January 2005 by:
		[(1)  that reporting employer; or                            
		[(2)  another employer, if both employers are school 
districts that consolidated into a consolidated school district on 
or] before September 1, 2005.
	SECTION 3.  Subsection (b), Section 1575.204, Insurance 
Code, is amended to read as follows:
	(b)  Each state fiscal year, each employer who reports to the 
retirement system under Section 824.6022, Government Code, the 
employment of a retiree who is enrolled in the group program shall 
contribute to the fund the difference, if any, between the 
contribution amount that the reported retiree is required to pay 
for the retiree and any enrolled dependents to participate in the 
group program and the full cost of the retiree's and enrolled 
dependents' participation in the group program, as determined by 
the trustee.  The amounts required to be paid under this subsection 
are not required to be paid by a reporting employer for a retiree 
who retired from the [was reported by that employer under] 
retirement system before September 1, [rules in effect for the 
report month of January] 2005.
	SECTION 4.  (a)  The Teacher Retirement System of Texas shall 
make a one-time supplemental payment of a retirement or death 
benefit, as provided by this section.
	(b)  The supplemental payment is payable not later than 
September of 2007 and, to the extent practicable, on a date or dates 
that coincide with the regular annuity payment payable to each 
eligible annuitant.
	(c)  The amount of the supplemental payment is equal to the 
gross amount of the regular annuity payment to which the eligible 
annuitant is otherwise entitled for the month of August 2007.
	(d)  The supplemental payment is payable without regard to 
any forfeiture of benefits under Section 824.601, Government Code.  
The Teacher Retirement System of Texas shall make applicable tax 
withholding and other legally required deductions before 
disbursing the supplemental payment.  A supplemental payment under 
this section is in addition to and not in lieu of the regular 
monthly annuity payment to which the eligible annuitant is 
otherwise entitled.
	(e)  Subject to Subsection (f) of this section, to be 
eligible for the supplemental payment, a person must be, for the 
month of August 2007, and disregarding any forfeiture of benefits 
under Section 824.601, Government Code, an annuitant eligible to 
receive:
		(1)  a standard retirement annuity payment;                                   
		(2)  an optional retirement annuity payment as either a 
retiree or beneficiary;
		(3)  a life annuity payment under Section 
824.402(a)(4), Government Code;   
		(4)  an annuity for a guaranteed period of 60 months 
under Section 824.402(a)(3), Government Code; or
		(5)  an alternate payee annuity payment under Section 
804.005, Government Code.
	(f)  If the annuitant is a retiree or a beneficiary under an 
optional retirement payment plan, to be eligible for the 
supplemental payment, the effective date of the retirement of the 
member of the Teacher Retirement System of Texas must have been on 
or before December 31, 2006.  If the annuitant is a beneficiary 
under Section 824.402(a)(3) or (4), Government Code, to be eligible 
for the supplemental payment, the date of death of the member of the 
retirement system must have been on or before December 31, 2006.  
The supplemental payment shall be made to an alternate payee who is 
an annuitant under Section 804.005, Government Code, only if the 
annuity payment to the alternate payee commenced on or before 
December 31, 2006. The supplemental payment is in addition to the 
guaranteed number of payments under Section 824.402(a)(3) or 
824.204(c)(3) or (4), Government Code, and may not be counted as one 
of the guaranteed monthly payments.
	(g)  The supplemental payment does not apply to payments 
under:              
		(1)  Section 824.304(a), Government Code, relating to 
disability retirees with less than 10 years of service credit;
		(2)  Section 824.804(b), Government Code, relating to 
participants in the deferred retirement option plan with regard to 
payments from their deferred retirement option plan accounts;
		(3)  Section 824.501(a), Government Code, relating to 
retiree survivor beneficiaries who receive a survivor annuity in an 
amount fixed by statute; or
		(4)  Section 824.404(a), Government Code, relating to 
active member survivor beneficiaries who receive a survivor annuity 
in an amount fixed by statute.
	(h)  Except as provided by this section, the board of 
trustees of the Teacher Retirement System of Texas shall determine 
the eligibility for and the amount and timing of a supplemental 
payment and the manner in which the payment is made.
	SECTION 5.  Section 825.404(a), Government Code, as amended 
by this Act, applies beginning with the fiscal year that begins 
September 1, 2007.
	SECTION 6.  Section 825.4092, Government Code, as amended by 
this Act, applies only to an employer contribution required to be 
made under that section on or after September 1, 2007.  An employer 
contribution required to be made before September 1, 2007, is 
governed by the law as it existed at the time the contribution was 
required to be made, and that law is continued in effect for that 
purpose.
	SECTION 7.  This Act takes effect September 1, 2007.