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MI HB4658

MI HB4658
Retirement: judges; naming a special needs trust as beneficiary; allow. Amends sec. 506 of 1992 PA 234 (MCL 38.2506).


summary

Introduced
06/17/2025
In Committee
06/17/2025
Crossed Over
Passed
Dead

Introduced Session

103rd Legislature

Bill Summary

A bill to amend 1992 PA 234, entitled"The judges retirement act of 1992,"by amending section 506 (MCL 38.2506), as amended by 2002 PA 95.

AI Summary

This bill amends the Judges Retirement Act to modify rules about retirement allowances and beneficiary designations for judges. Specifically, the bill introduces a new provision allowing judges to name a special needs trust as a beneficiary for their retirement allowance. Under the new language, if a retirement allowance beneficiary is a beneficiary of a trust established under federal law (specifically 42 USC 1396p(d)(4)(A) or (C)), the retirement system can pay the retirement allowance directly to the trust. This payment can be made upon written direction from the retirant, or after the retirant's death, by the beneficiary or their legal representative if the beneficiary is a minor or incapacitated. The bill also makes several technical changes to the existing law, such as replacing "shall" with "will" or "must" and clarifying language around beneficiary designations, spousal consent, and options for retirement allowance payments. These modifications provide more flexibility for judges in planning their retirement benefits, particularly for those with family members who have special needs and might benefit from a special needs trust.

Committee Categories

Justice

Sponsors (11)

Last Action

Bill Electronically Reproduced 06/17/2025 (on 06/18/2025)

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