MI HB5985

Allows retirement allowance beneficiaries who are beneficiaries of special needs trusts established under 42 USC 1396p(d)(4)(A) or (C) to receive payments directly to the trust upon written direction from the retirant or their legal representative.

Updates statutory language throughout Section 506 by replacing mandatory terms like "shall" with "will," "must," or "is" for modernized grammar and clarity.

Clarifies that judges retiring under the Judges Retirement Act of 1992 can elect optional retirement allowance payment options (Option A or Option B) with designated beneficiaries who must be family members.

Adds cross-reference citations to the Public Employee Retirement Benefit Protection Act (2002 PA 100, MCL 38.1681 to 38.1689) in provisions addressing void elections due to divorce.

Maintains existing provisions allowing members with 8 or more years of credited service to pre-elect Option A with a nominated retirement allowance beneficiary before retirement becomes effective.