MI HB5653

Amends the state employees' retirement system to ensure compliance with Internal Revenue Code section 415 regarding benefit limitations for qualified governmental pension plans.

Requires the retirement board and department director to determine the actuarially assumed interest rate using adopted mortality tables when calculating actuarial equivalent retirement allowances.

Establishes that retirement system assets must be held in trust exclusively for meeting obligations to members, retirants, and beneficiaries, with post-tax member contributions returned upon retirement.

Implements required minimum distribution requirements under Internal Revenue Code section 401(a)(9), with required beginning dates no later than April 1 following the year an employee reaches age 70½ or retires.

Allows distributees and nonspouse beneficiaries to elect direct rollovers of eligible distributions to other qualified retirement plans or inherited individual retirement accounts, effective October 1, 2010.