MI SB0497

Requires the investment board to select and contract with 2 or more annuity providers through a competitive proposal process to offer fixed annuity, guaranteed lifetime income, and variable annuity options to Tier 2 participants while employed.

Establishes financial strength and stability requirements for annuity providers, including authorized insurer status, clean regulatory history, audited financial statements, and claims-paying ability ratings of at least A2 from Moody's or A from Standard & Poor's, Fitch, or AM Best (meeting at least 2 of 4 rating criteria).

Allows the investment board to select only 1 annuity provider if it determines that multiple providers are not in participants' interests or if only 1 provider meets the conditions, with required notification to legislative leaders within 30 days.

Modifies contribution requirements for eligible position, conservation officer, and state police qualified participants to allow higher employee contributions (6-10% based on years of service) with matching employer contributions, while maintaining 3% maximum for other participants.

Updates statutory language throughout sections 55, 58, 63, 63a, and 69 to replace outdated terms with modern phrasing and clarify references to the Public Employee Retirement System Investment Act.