Bill > HB4659

This bill amends the State Employees' Retirement Act to modify provisions related to retirement allowance options and beneficiary designations. The key changes include allowing state employees to name a special needs trust as a beneficiary for their retirement allowance under certain conditions, specifically if the trust is established under federal law (42 USC 1396p(d)(4)(A) or (C)). The bill permits the retirement system to pay the retirement allowance directly to such a trust if directed in writing by the retirant or, after the retirant's death, by the beneficiary or their legal representative, particularly in cases where the beneficiary is a minor or incapacitated. The bill also makes several technical updates to language throughout the section, such as replacing gendered pronouns with more neutral terms like "member" or "individual" and clarifying various procedural details about retirement allowance options. Additionally, the bill adds a definition for "regular retirement allowance" as a retirement allowance payable for life and includes provisions about how retirement allowances might be adjusted in cases of divorce or beneficiary death. These changes aim to provide more flexibility for state employees in designating beneficiaries and managing their retirement benefits.

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https://legislature.mi.gov/Bills/Bill?ObjectName=2025-HB-4659