Bill > HB4660

This bill amends the Public School Employees Retirement Act to allow public school employees more flexibility in designating retirement allowance beneficiaries, with a specific new provision permitting the designation of a special needs trust as a beneficiary. The bill modifies existing retirement options by making several technical language changes and clarifying provisions around beneficiary selection, including allowing members to change beneficiaries under specific circumstances such as remarriage or when a first spouse predeceases the retirant. The most significant new addition is subsection (12), which explicitly permits retirement allowance payments to be directed to a trust established under federal law for individuals with disabilities (specifically trusts created under 42 USC 1396p(d)(4)(A) or (C)). This means a retirant can now designate a special needs trust as their beneficiary, and the retirement system can pay retirement allowance benefits directly to that trust upon written direction by the retirant or, after the retirant's death, by the trust beneficiary or their legal representative. The bill maintains existing protections and actuarial calculations while providing more options for retirees in managing their retirement benefits.

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https://legislature.mi.gov/Bills/Bill?ObjectName=2025-HB-4660