Michigan Bill Permits Public School Retirees to Name Special Needs Trusts as Beneficiaries

Original title: Retirement: public school employees; naming a special needs trust as beneficiary; allow.

Last action · April 15, 2026: referred to second readingSponsors: Douglas Wozniak and 11 others

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What This Bill Would Do

House Bill 4660 amends the public school employees retirement act to allow retired members to direct their retirement allowance payments to certain s established for a beneficiary. The payment may be made directly to the trust upon written instruction from the retirant or, after the retirant's death, by the beneficiary or their legal representative if the beneficiary is a minor or incapacitated.

Why it matters

Public school retirees gain the legal option to structure their pension survivor benefits through a specialized disability trust without forfeiting retirement system compliance. Affected families managing long-term care needs can utilize this mechanism to protect disabled beneficiaries.

Background

Michigan public school employee pensions are governed statutorily by the Public School Employees Retirement Act of 1979. context

Who It Would Affect

Groups the bill's text would affect if enacted, as described in the record. Being affected is not a position for or against it.

Directly affected

Public school retirees and deferred members

Retirants are granted the legal option to direct their retirement allowances to a qualifying special needs trust for a beneficiary.

Directly affected

Beneficiaries of special needs trusts

Eligible individuals who are minors or incapacitated may receive retirement allowance payments directed into their established special needs trust by a legal representative after the retirant's death.

Key Facts

You don't have to trust us. Each fact below is taken straight from the official document - click any one to see the exact passage, highlighted in the original.

Frequently Asked Questions

Who can direct the retirement system to pay benefits into a special needs trust?

The retirant can provide written direction during their lifetime. After the retirant's death, the retirement allowance beneficiary or their legal representative can provide written direction if the beneficiary is a minor or incapacitated.

What types of trusts are eligible to receive these retirement payments?

Trusts established under 42 USC 1396p(d)(4)(A) or (C), which correspond to s for disabled individuals.

What else do you want to know?

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Where This Stands

Currently in committee. The next step in the legislative lifecycle is Floor Vote.

Procedural history

6 actions

Apr 15, 2026House
referred to second reading
Apr 15, 2026HouseCommittee
reported with recommendation without amendment
Jun 18, 2025House
bill electronically reproduced 06/17/2025
Jun 17, 2025HouseCommittee
referred to Committee on Judiciary
Jun 17, 2025HouseIntroduced
read a first time
Jun 17, 2025HouseIntroduced
introduced by Representative Rep. Douglas Wozniak

Version history

Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.

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