Retirement Plan Modernization Act

Bill: 116-hr-5676
Sponsor: full_name: Del. Sablan, Gregorio Kilili Camacho [D-MP-At Large]
Introduced: 2020-01-24
Policy area: Labor and Employment
Subjects: Employee benefits and pensions

Inflation and prices
Latest action: action_date: 2020-01-24
text: 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.

Summaries:
action_date: 2020-01-24
action_desc: Introduced in House
text: <p><b>Retirement Plan Modernization Act </b></p> <p>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. </p>

tv_txt: I 116th CONGRESS 2d Session H. R. 5676 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. Short title This Act may be cited as the Retirement Plan Modernization Act . 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.