MI SB0262

Requires the State of Michigan Investment Board to offer fixed annuity options (and optionally variable annuities) to Tier 2 state employee retirement plan participants, with annuity providers selected through a competitive proposal process meeting specific financial strength and stability requirements

Increases employer matching contribution rates for eligible public safety positions (corrections officers, conservation officers, state police) based on years of service: up to 6% match for under 3 years, up to 8% for 3-5 years, and up to 10% for 5+ years of service

Standard Tier 2 participants continue to receive 4% automatic employer contribution plus up to 3% employer match on voluntary employee contributions

Mandates automatic enrollment in retirement contributions at the level required to receive full employer matching, unless participants elect a lower contribution amount

Distributions from employer and matched employee contributions remain exempt from state and local taxes and subject to public employee retirement benefit protection