Retirement: other; naming a special needs trust as beneficiary; allow. Amends 2017 PA 202 (MCL 38.2801 - 38.2812) by adding sec. 4a & repeals sec. 2 of 2017 PA 202 (MCL 38.2802).

This bill allows retirement systems in Michigan to pay pension benefits directly to a special needs trust if the retiree or their designated beneficiary directs it in writing. The change specifically applies to trusts established under federal law to help individuals with disabilities maintain government benefits while receiving support. It also permits payments to go to the trust after the retiree dies if the beneficiary is a minor or unable to manage their own affairs. By repealing an older section, the legislation clarifies how these funds can be managed without disrupting other financial protections.