Letter to Chairman Walberg and Ranking Member Sablan Supporting H.R. 4158, the "Retirement Plan Modernization Act" | U.S. Chamber of Commerce

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

Monday, November 6, 2017 - 1:30pm

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, 2017
 
The Honorable Tim Walberg
Chairman
Subcommittee on Health, Education, Labor and Pensions
Committee on Education and the Workforce
U.S. House of Representatives
Washington, D.C. 20515
 
The Honorable Gregorio Sablan
Ranking Member
Subcommittee on Health, Education, Labor and Pensions
Committee on Education and the Workforce
U.S. House of Representatives
Washington, D.C. 20515
 
 
Dear Chairman Walberg and Ranking Member Sablan:
 
     Thank you for introducing H.R. 4158, the “Retirement Plan Modernization Act,” a
bipartisan bill that provides a much-needed increase to the involuntary cash-out limit for
employer 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, with
future adjustments based on inflation. This limit has not been increased in 20 years and is not
subject to indexing, unlike many other limits in the retirement system. These updates would
streamline retirement plan administration and reduce burdens for employers, especially small
businesses.
 
     This bill is a necessary step toward bringing the involuntary cash-out limit to an
appropriate value and ensuring automatic increases to prevent the limit from again becoming
outdated.