[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5427 Introduced in House (IH)]

<DOC>






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.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Stand Up For Students Act''.

SEC. 2. PROHIBITION ON USE OF EDUCATION FUNDS FOR EXCESS PAYMENTS TO 
              CERTAIN RETIREMENT 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 RETIREMENT OR PENSION SYSTEMS.

    ``(a) In General.--Except as provided under subsection (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.--Subsection (a) shall not 
apply with respect to a teacher retirement or pension system for a plan 
year if the system certifies to the Secretary, at such time and in such 
manner as the Secretary may require, that the system has a funded ratio 
for such plan year exceeding 50 percent.
    ``(c) Definitions.--For purposes of this section:
            ``(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 pension system has accrued.
            ``(2) Funded ratio.--The term `funded ratio' means, with 
        respect to a teacher retirement or pension 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 contents 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 certain 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 Student Succeeds Act (Public Law 
114-95).
                                 <all>