Retirement: state employees; naming a special needs trust as beneficiary; allow. Amends sec. 31 of 1943 PA 240 (MCL 38.31).

HB 4659 allows Michigan state employees to name a special needs trust as a beneficiary for their retirement benefits, expanding current options that only permitted family members (like spouses or children). This change directly affects state employees with disabled family members who rely on government benefits, as naming a trust protects beneficiaries' eligibility for programs like Medicaid without disrupting retirement payments. The bill amends Section 31 of the State Employees' Retirement Act to explicitly include special needs trusts in the list of permitted beneficiaries, replacing the current restriction to family relationships. This policy change ensures retirement benefits can continue to support disabled dependents while maintaining their access to public assistance programs.