Compliance May 21, 2010

MI Pension Bill Inked by Granholm

May 21, 2010 (PLANSPONSOR.com) – Michigan Governor Jennifer M. Granholm has signed into law legislation that reforms the Michigan Public School Employees' Retirement System (MPSERS).
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A Granholm news release said, among other things, the bill redirects employees hired on or after July 1, 2010, into a new lower-cost defined benefit/defined contribution hybrid plan. 

Granholm said in the announcement that the reforms are expected to save Michigan school districts more than $3 billion over 10 years including almost $680 million in the 2010 to 2011 school year, an estimate based on 28,000 of the 56,000 eligible school employees taking retirement between July 1 and September 1, 2010, when they will get a slightly enhanced pension.

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According to the announcement, beginning July 1, 2010, all MPSERS employees will contribute 3% of their salary to be deposited into an irrevocable health care trust in addition to what they already contribute to the pension system.  Funds will be used to offset employer contributions for health care costs of current retirees.

The reform package goes into effect immediately.

Benefits May 21, 2010

Hooters Girl Claims Weight Discrimination

May 21, 2010 (PLANSPONSOR.com) – A Hooters girl in Michigan says she was put on probation because of her weight.
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Twenty-year-old Cassandra Smith told the Detroit News that after receiving high marks in other areas during her yearly evaluation, her assistant manager and general manager and two officials from Hooters of America Inc. headquarters in Atlanta told her she received the lowest marks for her “uniform fitting.” Smith said she was confused by the comment because since the start of her employment, she has worn the company-issued shirt and shorts in extra small, and if anything she has been losing weight.  

She was then offered a free gym membership and given 30 days to improve, and told that if she did not comply within 60 days, she would be fired. Smith is 5 foot 8 inches tall and weighs 132 pounds, according to the news report.  

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Smith said she does not plan on returning to work, and is contemplating legal action.   

In a statement, Hooters of America said it upholds image standards for its Hooters Girls, but does not impose weight requirements, according to the Detroit News. Mike McNeil, the vice president of marketing for Hooters of America, said “our practice of upholding an image standard based on appearance, attitude and fitness for Hooters Girls is both legal and fair. It is not unlike the standard used by the Dallas Cowboy Cheerleaders or the Radio City Music Hall Rockettes.”  

“However, as popular as the job might be, being a Hooters Girl is not for everyone,” he added.

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