I 

116TH CONGRESS 

2D SESSION H. R. 5676 

To increase the amount of accrued benefit which a pension plan may 

distribute after employee separation. 

IN THE HOUSE OF REPRESENTATIVES 

JANUARY 24, 2020 

Mr. SABLAN (for himself and Mr. WALBERG) introduced the following bill; 

which was referred to the Committee on Education and Labor, and in 

addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such 

provisions as fall within the jurisdiction of the committee concerned 

A BILL 

To increase the amount of accrued benefit which a pension 

plan may distribute after employee separation. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Retirement Plan Mod5 ernization Act’’. 


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1 SEC. 2. INCREASE IN AMOUNT OF ACCRUED BENEFIT 

2 WHICH A PENSION PLAN MAY DISTRIBUTE 

3 AFTER EMPLOYEE SEPARATION. 

4 (a) AMENDMENTS TO INTERNAL REVENUE CODE OF

5 1986.— 

6 (1) IN GENERAL.—Section 411(a)(11)(A) of the 

7 Internal Revenue Code of 1986 is amended by strik8 ing ‘‘$5,000’’ and inserting ‘‘$8,000’’. 

9 (2) INFLATION ADJUSTMENT.—Section 

10 411(a)(11) of such Code is amended by adding at 

11 the end the following new subparagraph: 

12 ‘‘(E) INFLATION ADJUSTMENT.—In the 

13 case of any plan year beginning after 2019, the 

14 Secretary shall adjust the $8,000 amount in 

15 subparagraph (A) at the same time and in the 

16 same manner as under section 415(d), except 

17 that the base period shall be the calendar quar18 ter beginning July 1, 2018, and any increase 

19 under this subparagraph which is not a multiple 

20 of $50 shall be rounded to the next lowest mul21 tiple of $50.’’. 

22 (3) CONFORMING AMENDMENTS.— 

23 (A) Section 401(a)(31)(B)(ii) of such Code 

24 is amended by striking ‘‘$5,000’’ and inserting 

25 ‘‘the dollar limit in effect under section 

26 411(a)(11)(A)’’. 


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1 (B) Section 411(a)(7)(B)(i) of such Code 

2 is amended by striking ‘‘under section 

3 411(a)(11)(A)’’ and inserting ‘‘in effect under 

4 paragraph (11)(A)’’. 

5 (C) Section 457(e)(9)(A)(i) of such Code is 

6 amended by inserting ‘‘in effect’’ after ‘‘the dol7 lar limit’’. 

8 (b) AMENDMENTS TO THE EMPLOYEE RETIREMENT

9 INCOME SECURITY ACT OF 1974.— 

10 (1) IN GENERAL.—Section 203(e)(1) of the 

11 Employee Retirement Income Security Act of 1974 

12 (29 U.S.C. 1053(e)(1)) is amended by striking 

13 ‘‘$5,000’’ and inserting ‘‘$8,000’’. 

14 (2) INFLATION ADJUSTMENT.—Section 203(e) 

15 of such Act (29 U.S.C. 1053(e)) is amended by add16 ing at the end the following new paragraph: 

17 ‘‘(5) In the case of any plan year beginning 

18 after 2019, the Secretary of the Treasury shall ad19 just the $8,000 amount in paragraph (1) at the 

20 same time and in the same manner as under section 

21 415(d) of the Internal Revenue Code of 1986, except 

22 that the base period shall be the calendar quarter 

23 beginning July 1, 2018, and any increase under this 

24 paragraph which is not a multiple of $50 shall be 

25 rounded to the next lowest multiple of $50.’’. 


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1 (3) CONFORMING AMENDMENT.—Section 

2 204(d)(1) of such Act (29 U.S.C. 1054(d)(1)) is 

3 amended by inserting ‘‘in effect’’ after ‘‘the dollar 

4 limit’’. 

5 (c) EFFECTIVE DATE.—The amendments made by 

6 this section shall apply to plan years beginning after the 

7 date of the enactment of this Act. 

Æ 


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