MI HB4073

Creates one irrevocable trust per retirement system (State Employees, Public School Employees, Judges, State Police, and Legislative) to hold and distribute assets for postemployment health care benefits.

Establishes that retirement system boards serve as trustees and must adopt written trust agreements complying with Internal Revenue Code Section 115; state treasurer acts as investment fiduciary except legislative retirement system may opt to manage its own investments.

Grants past members contractual rights only to health care benefits to the extent assets exist in the funding account; specifies this act does not create, deny, or modify existing health care benefit rights.

Prohibits contributions to trusts from being revoked or refunded; protects trust assets from execution, garnishment, bankruptcy, and other legal process; requires surplus assets to be distributed to the state or participating employers.

Takes effect only if Senate Bill 1227 of the 95th Legislature is enacted into law; effective date May 19, 2010.