Retirement: judges; naming a special needs trust as beneficiary; allow. Amends sec. 506 of 1992 PA 234 (MCL 38.2506).

This bill allows Michigan judges to designate a special needs trust as the beneficiary for their retirement payments, provided the trust meets specific federal criteria. Under the new rules, judges can choose to receive their pension as a lifetime benefit that continues entirely or partially to a designated beneficiary after their death, with the option to direct these funds directly to the trust. The legislation also clarifies that if a judge divorces after June 27, 1991, their election to name a spouse or trust as a beneficiary may be voided by a court order, reverting the payment to a standard straight life annuity. Additionally, the bill requires the retirement system to provide written explanations of these payment options to judges before they retire.