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, 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outdated.