Title: Retirement Plan Modernization Act
Policy area: Labor and Employment

Summary:
Retirement Plan Modernization Act
This bill increases from $5,000 to $8,000 the amount of accrued benefits in a private pension plan that may be immediately distributed without the consent of the participant. The bill also requires the increased limit to be adjusted for inflation after 2019.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5676 Introduced in House (IH)]

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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.

    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 ``Retirement Plan Modernization Act''.

SEC. 2. INCREASE IN AMOUNT OF ACCRUED BENEFIT WHICH A PENSION PLAN MAY 
              DISTRIBUTE AFTER EMPLOYEE SEPARATION.

    (a) Amendments to Internal Revenue Code of 1986.--
            (1) In general.--Section 411(a)(11)(A) of the Internal 
        Revenue Code of 1986 is amended by striking ``$5,000'' and 
        inserting ``$8,000''.
            (2) Inflation adjustment.--Section 411(a)(11) of such Code 
        is amended by adding at the end the following new subparagraph:
                    ``(E) Inflation adjustment.--In the case of any 
                plan year beginning after 2019, the Secretary shall 
                adjust the $8,000 amount in subparagraph (A) at the 
                same time and in the same manner as under section 
                415(d), except that the base period shall be the 
                calendar quarter beginning July 1, 2018, and any 
                increase under this subparagraph which is not a 
                multiple of $50 shall be rounded to the next lowest 
                multiple of $50.''.
            (3) Conforming amendments.--
                    (A) Section 401(a)(31)(B)(ii) of such Code is 
                amended by striking ``$5,000'' and inserting ``the 
                dollar limit in effect under section 411(a)(11)(A)''.
                    (B) Section 411(a)(7)(B)(i) of such Code is amended 
                by striking ``under section 411(a)(11)(A)'' and 
                inserting ``in effect under paragraph (11)(A)''.
                    (C) Section 457(e)(9)(A)(i) of such Code is amended 
                by inserting ``in effect'' after ``the dollar limit''.
    (b) Amendments to the Employee Retirement Income Security Act of 
1974.--
            (1) In general.--Section 203(e)(1) of the Employee 
        Retirement Income Security Act of 1974 (29 U.S.C. 1053(e)(1)) 
        is amended by striking ``$5,000'' and inserting ``$8,000''.
            (2) Inflation adjustment.--Section 203(e) of such Act (29 
        U.S.C. 1053(e)) is amended by adding at the end the following 
        new paragraph:
            ``(5) In the case of any plan year beginning after 2019, 
        the Secretary of the Treasury shall adjust the $8,000 amount in 
        paragraph (1) at the same time and in the same manner as under 
        section 415(d) of the Internal Revenue Code of 1986, except 
        that the base period shall be the calendar quarter beginning 
        July 1, 2018, and any increase under this paragraph which is 
        not a multiple of $50 shall be rounded to the next lowest 
        multiple of $50.''.
            (3) Conforming amendment.--Section 204(d)(1) of such Act 
        (29 U.S.C. 1054(d)(1)) is amended by inserting ``in effect'' 
        after ``the dollar limit''.
    (c) Effective Date.--The amendments made by this section shall 
apply to plan years beginning after the date of the enactment of this 
Act.
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