Retirement: public school employees; naming a special needs trust as beneficiary; allow. Amends sec. 85 of 1980 PA 300 (MCL 38.1385).

This bill amends Michigan's Public School Employees Retirement Act to allow retiring teachers and disabled employees to designate a special needs trust as the beneficiary of their retirement payments. Under the new rules, individuals can choose to receive a reduced monthly pension that continues for the lifetime of a designated beneficiary, such as a spouse or child, rather than stopping entirely upon the retiree's death. The legislation also permits these designated beneficiaries to be special needs trusts, which are financial vehicles designed to provide ongoing support for individuals with disabilities without jeopardizing their eligibility for government assistance. Once a retiree selects this payment option and names a beneficiary, the choice generally cannot be changed after retirement begins, and the payments to the trust would commence immediately following the retiree's death.