MI HB4274

Requires the retirement system to offer fixed annuity and variable annuity options with guaranteed lifetime income options to qualified participants employed by reporting units.

Mandates the investment board select and contract with 2 or more annuity providers through a competitive proposal process, unless only 1 provider meets requirements or selecting multiple providers is not in participants' interests.

Establishes financial strength and stability requirements for annuity providers, including authorization as an insurer, clean regulatory history for 7 years, financial examination every 5 years, and minimum B+ rating from a national rating service.

Requires annuity providers to offer reasonable fees, appropriate administrative services with periodic reporting to the investment board, and participant education tools about annuities as retirement savings vehicles.

Takes effect 120 days after enactment and only if House Bill 4275 of the 100th Legislature is also enacted.