Letter to Chairman Walberg and Ranking Member Sablan Supporting H.R. 4158, the "Retirement Plan Modernization Act"

On November 6, 2017, the U.S. Chamber of Commerce sent this letter to the House Education and the Workforce Committee's Subcommittee on Health, Education, Labor, and Pensions Subcommittee Chairman Tim Walberg and Ranking Member Gregorio Sablan in support of H.R. 4158, the "Retirement Plan Modernization Act." H.R. 4158 would update the involuntary cash-out limit from $5,000 to $7,600, with future adjustments based on inflation.

November 6, 2017The Honorable Tim WalbergChairmanSubcommittee on Health, Education, Labor and PensionsCommittee on Education and the WorkforceU.S. House of RepresentativesWashington, D.C. 20515The Honorable Gregorio SablanRanking MemberSubcommittee on Health, Education, Labor and PensionsCommittee on Education and the WorkforceU.S. House of RepresentativesWashington, D.C. 20515Dear Chairman Walberg and Ranking Member Sablan:Thank you for introducing H.R. 4158, the “Retirement Plan Modernization Act,” abipartisan bill that provides a much-needed increase to the involuntary cash-out limit foremployer sponsored retirement plans and allows for future adjustments based on inflation.H.R. 4158 would update the involuntary cash-out limit from $5,000 to $7,600, withfuture adjustments based on inflation. This limit has not been increased in 20 years and is notsubject to indexing, unlike many other limits in the retirement system. These updates wouldstreamline retirement plan administration and reduce burdens for employers, especially smallbusinesses.This bill is a necessary step toward bringing the involuntary cash-out limit to anappropriate value and ensuring automatic increases to prevent the limit from again becomingoutdated.