MI HB5986

Allows retirement allowance beneficiaries who are beneficiaries of special needs trusts (established under 42 USC 1396p(d)(4)(A) or (C)) to have their payments paid directly to the trust rather than to the individual beneficiary.

Permits the retirant to direct payments to the trust in writing, and after the retirant's death, the retirement allowance beneficiary or their legal representative may direct such payments if the beneficiary is a minor or incapacitated.

Makes technical language updates throughout the statute, including replacing archaic terms like "shall" with "must" and "his or her" with "the member's" or similar gender-neutral phrasing for consistency and clarity.

Clarifies that a "regular retirement allowance" means a retirement allowance payable for life, adding this definition to the statute.

Adds specific statutory citations to the public employee retirement benefit protection act (2002 PA 100, MCL 38.1681 to 38.1689) in provisions regarding divorce and void payment options.