Michigan House Bill HB4657

Michigan 2025-2026 Regular Session

• Introduced: 6/17/25
• Refer: 6/17/25

Caption

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

Impact

The proposed changes in HB 4657 are intended to ensure that retirement benefits are more accessible and understandable for state police officers nearing retirement. This would also simplify benefits continuity for surviving spouses and children, ensuring that pensions are passed on correctly in the event of the retirant's death. The amendments acknowledge the unique structure of service for police officers and aim to respect the long-term commitments these individuals have made to public safety and service.

Summary

House Bill 4657 amends the 1986 State Police Retirement Act in Michigan, specifically section 24. The bill permits members of the state police who have served a minimum of 25 years and are over the age of 56 to retire with a retirement allowance. The retirement allowance is defined as 60% of the member's final average compensation. This amendment aims to provide clearer guidelines and benefits to long-serving members of the state's police department, allowing for secure retirement options that are consistent with contemporary retirement expectations.

Contention

Despite its benefits, the bill has raised discussions about the specific provisions for retirement allowance beneficiaries, particularly how benefits are assigned in cases of divorce or changes in beneficiary status. Some stakeholders express concern regarding the implications of allowing multiple beneficiary options under a retirement trust. Critics worry that complex beneficiary changes could complicate the straightforward provision of retirement benefits. Additionally, the financial sustainability of expanded benefits, while ensuring retirees receive a secure income, remains a topic of debate.