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HB 4657

Retirement: state police; naming a special needs trust as beneficiary; allow. Amends sec. 24 of 1986 PA 182 (MCL 38.1624).

2025-2026 Regular Session Introduced by Kelly Breen and 10 co-sponsors

Michigan allows state police to designate special needs trusts as retirement beneficiaries, enabling officers to provide for disabled dependents without disrupting their benefits.

bill electronically reproduced 06/17/2025
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Bill Summary · HB 4657

Legislative bill overview

HB 4657 amends Michigan's state police retirement law to permit state police officers to name a special needs trust as the beneficiary of their retirement benefits. Currently, the law restricts beneficiary designations in ways that may exclude special needs trusts, which are legal arrangements designed to provide for individuals with disabilities without disqualifying them from means-tested government benefits.

Why is this important

State police officers with family members who have disabilities currently lack the ability to provide for their loved ones through retirement benefits in a way that preserves their eligibility for crucial programs like Medicaid or SSI. Allowing special needs trusts as beneficiaries enables officers to plan for long-term care of disabled dependents while protecting their access to public assistance programs that would otherwise be jeopardized by large direct inheritances.

Potential points of contention

  • Trust administration complexity: Special needs trusts require professional management and ongoing legal oversight, which may complicate the claims process for beneficiaries compared to direct payouts
  • Fiscal impact on retirement system: The bill's interaction with the Michigan State Police Retirement System's payout structure and funding obligations is unclear from the bill description alone
  • Scope of beneficiaries: Questions may arise about whether this sets a precedent for other public employees or retirement systems to make similar changes

Compiled from official sources — confirm details with the bill’s official record.

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