I 

114TH CONGRESS 

2D SESSION H. R. 5427 

To prohibit the use of education funds provided under the Elementary and 

Secondary Education Act of 1965 for excess payments to certain retirement or pension systems. 

IN THE HOUSE OF REPRESENTATIVES 

JUNE 9, 2016 

Mr. DOLD introduced the following bill; which was referred to the Committee 

on Education and the Workforce 

A BILL 

To prohibit the use of education funds provided under the 

Elementary and Secondary Education Act of 1965 for 

excess payments to certain retirement or pension systems. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Stand Up For Stu5 dents Act’’. 


smartinez on DSK3GLQ082PROD with BILLS
2 

•HR 5427 IH

1 SEC. 2. PROHIBITION ON USE OF EDUCATION FUNDS FOR 

2 EXCESS PAYMENTS TO CERTAIN RETIRE3 MENT OR PENSION SYSTEMS. 

4 (a) IN GENERAL.—Subpart 2 of part F of title VIII 

5 of the Elementary and Secondary Education Act of 1965 

6 (20 U.S.C. 7901 et seq.) is amended by adding at the end 

7 the following: 

8 ‘‘SEC. 8549D. PROHIBITION ON USE OF EDUCATION FUNDS 

9 FOR EXCESS PAYMENTS TO CERTAIN RETIRE10 MENT OR PENSION SYSTEMS. 

11 ‘‘(a) IN GENERAL.—Except as provided under sub12 section (b), no State receiving funds under this Act may 

13 require any local educational agency using funds under 

14 this Act to hire or pay the salary of teachers to use such 

15 funds to make contributions to a teacher retirement or 

16 pension system for a plan year in excess of the normal 

17 cost of pension benefits for such plan year for which the 

18 employing local educational agency has responsibility. 

19 ‘‘(b) EXCEPTION BASED ON FUNDED RATIO.—Sub20 section (a) shall not apply with respect to a teacher retire21 ment or pension system for a plan year if the system cer22 tifies to the Secretary, at such time and in such manner 

23 as the Secretary may require, that the system has a fund24 ed ratio for such plan year exceeding 50 percent. 

25 ‘‘(c) DEFINITIONS.—For purposes of this section: 


smartinez on DSK3GLQ082PROD with BILLS
3 

•HR 5427 IH

1 ‘‘(1) NORMAL COST.—The term ‘normal cost’ 

2 means the portion of the cost of projected benefits 

3 allocated to the current plan year, not including any 

4 unfunded liabilities the teacher retirement or pen5 sion system has accrued. 

6 ‘‘(2) FUNDED RATIO.—The term ‘funded ratio’ 

7 means, with respect to a teacher retirement or pen8 sion system for a plan year, the ratio of— 

9 ‘‘(A) the value of the system’s assets for 

10 the plan year (as determined using reasonable 

11 actuarial assumptions), to 

12 ‘‘(B) the accrued liability of the system for 

13 the plan year (as so determined).’’. 

14 (b) CONFORMING AMENDMENT.—The table of con15 tents in section 2 of such Act is amended by inserting 

16 after the item relating to section 8549C, the following: 

‘‘Sec. 8549D. Prohibition on use of education funds for excess payments to certain retirement or pension systems.’’. 

17 SEC. 3. EFFECTIVE DATE. 

18 The amendments made by this Act shall take effect 

19 as if enacted on the date of enactment of the Every Stu20 dent Succeeds Act (Public Law 114–95). 

Æ 


smartinez on DSK3GLQ082PROD with BILLS