House Bill 4055 Summary

• Modifies retirement and pension benefit deductions for individuals born after 1952 who receive benefits from governmental agencies not covered by federal Social Security, effective January 1, 2017.

• For persons born after 1952 aged 62-66 receiving non-Social Security governmental pensions, limits deductions to $20,000 single/$20,000 joint return (or $30,000 joint if both spouses receive such benefits).

• For persons born after 1952 aged 67 and older, allows an unrestricted $20,000 single/$40,000 joint return deduction available against all income types, not just pension income.

• Makes technical corrections including changing "subsection" to "subdivision" in section 30(1)(p) and updating references to the Michigan ABLE savings program act.

• Creates transitional rules allowing individuals to elect between restricted pension deductions and standard personal exemptions to minimize tax liability.