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 retire-
ment 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 sys-
tems. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Stand Up For Stu-
dents Act’’. 
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SEC. 2. PROHIBITION ON USE OF EDUCATION FUNDS FOR 
EXCESS PAYMENTS TO CERTAIN RETIRE-
MENT OR PENSION SYSTEMS. 
(a) IN GENERAL.—Subpart 2 of part F of title VIII 
of the Elementary and Secondary Education Act of 1965 
(20 U.S.C. 7901 et seq.) is amended by adding at the end 
the following: 
‘‘SEC. 8549D. PROHIBITION ON USE OF EDUCATION FUNDS 
FOR EXCESS PAYMENTS TO CERTAIN RETIRE-
MENT OR PENSION SYSTEMS. 
‘‘(a) IN GENERAL.—Except as provided under sub-
section (b), no State receiving funds under this Act may 
require any local educational agency using funds under 
this Act to hire or pay the salary of teachers to use such 
funds to make contributions to a teacher retirement or 
pension system for a plan year in excess of the normal 
cost of pension benefits for such plan year for which the 
employing local educational agency has responsibility. 
‘‘(b) EXCEPTION BASED ON FUNDED RATIO.—Sub-
section (a) shall not apply with respect to a teacher retire-
ment or pension system for a plan year if the system cer-
tifies to the Secretary, at such time and in such manner 
as the Secretary may require, that the system has a fund-
ed ratio for such plan year exceeding 50 percent. 
‘‘(c) DEFINITIONS.—For purposes of this section: 
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‘‘(1) NORMAL COST.—The term ‘normal cost’ 
means the portion of the cost of projected benefits 
allocated to the current plan year, not including any 
unfunded liabilities the teacher retirement or pen-
sion system has accrued. 
‘‘(2) FUNDED RATIO.—The term ‘funded ratio’ 
means, with respect to a teacher retirement or pen-
sion system for a plan year, the ratio of— 
‘‘(A) the value of the system’s assets for 
the plan year (as determined using reasonable 
actuarial assumptions), to 
‘‘(B) the accrued liability of the system for 
the plan year (as so determined).’’. 
(b) CONFORMING AMENDMENT.—The table of con-
tents in section 2 of such Act is amended by inserting 
after the item relating to section 8549C, the following: 
‘‘Sec. 8549D. Prohibition on use of education funds for excess payments to cer-
tain retirement or pension systems.’’. 
SEC. 3. EFFECTIVE DATE. 
The amendments made by this Act shall take effect 
as if enacted on the date of enactment of the Every Stu-
dent Succeeds Act (Public Law 114–95). 
Æ 
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