MI HB5230

Requires the Michigan public school employee retirement system to offer fixed and variable annuity options in addition to self-directed investment categories for Tier 2 participants.

Authorizes participants to purchase annuities while still employed by a reporting unit, subject to state treasurer selection of 2 or more annuity providers through competitive proposal process.

Establishes financial strength and stability requirements for annuity providers, including authorization as an insurer, valid certificate of authority, audited financial statements, and no rehabilitation or liquidation orders for the preceding 5 years.

Requires annuity providers to offer lifetime income options, clear contract terms based on reasonable assumptions, and participant education tools; variable annuities must include a fixed account option.

Takes effect 120 days after enactment, contingent on House Bill 5231 of the 99th Legislature also being enacted into law.