Some responses.  1. As a retired professor I am (was) considered a state employee and therefore my base retirement plan was (is) considered a Michigan public pension.  2. As a consequence, when I retired the Benefits Office printed in boldface that any rollover of my base retirement plan to an IRA would cause me to lose the total state tax exemption provided to those who have Michigan public pensions.  3. TIAA, as my plan administrator, confirmed this when I separated from service, as did my accountant.  4. In the course of a recent conversation with our TIAA wealth manager, my wife brought this topic up once again and the  TIAA wealth manager once again confirmed the loss of the state tax exemption if my wife chose to rollover some monies to an IRA.

Suggestions: talk to your plan administator, and talk to an informed accountant before you make any moves.  This assumes that under Michigan law you are considered to have a Michigan public pension.  That's the best I can do.  Bob U. 

Bob: Thanks a lot....

I will ask. I moved some last year but nobody mention this at all.  

Zipper.