Sink or Swim with Lifeguard Pensions

In 2013 according to 987thecoast.com:

In an effort to cut costs, the Ocean City [New Jersey] Council approved a resolution at Thursday’s meeting to lobby the New Jersey legislature to abolish pensions for newly hired lifeguards. Ocean City pays out over $160,000 annually for the pensions of 28 retired lifeguards, according to a report in the Ocean City Gazette. The resolution also stated that the city would grandfather in current pensioned employees, but it was in the best interest of the taxpayers to end the practice of paying pensions to seasonal lifeguards. The resolution now goes to the N.J. State Senate and Assembly.

Nothing came of it then but this week we got:

<> S2085 <> Allows municipality with life guard pension fund to close enrollment to new employees or to terminate fund altogether.

Sweeney, Stephen M.   as Primary Sponsor
O’Toole, Kevin J.   as Primary Sponsor

No text yet which doesn’t necessarily mean it won’t get enacted in its current form based on how New Jersey operates:
.

.
Atlantic City is paying out about $1 million annually in lifeguard pensions and has roughly a $100 million budget deficit and is more than $550 million in debt.

If this law passes and Atlantic City uses it they can expect:

  • that $1 million annual payout obligation to keep rising with new retirees (and maybe COLAs) bumping up costs;
  • newly hired lifeguards not getting pensions twenty years from now (and not making their 4%-of-pay contributions over those years into this Ponzi scheme) which could be a justification for getting higher salaries; and
  • any noticeable savings starting around the year 2037.

10 responses to this post.

  1. Posted by dentss dunnigan on April 23, 2016 at 1:12 pm

    How about some of the double dipping politicians …and start with Prieto …..

    Reply

  2. Posted by Anonymous on April 24, 2016 at 7:35 pm

    The problem isn’t what might be paid to public employees 25 years from now the problem is what is being paid out now and how will that be sustained?

    Reply

  3. Posted by PS Drone on April 24, 2016 at 11:55 pm

    This is classic New Jersey horseshit. Cancel pensions for NEWLY HIRED LIFEGUARDS. Solves nothing, saves nothing. Cancel all such BS pensions immediately!!! Augghaaaaaa!!!

    Reply

  4. Posted by Anonymous on April 25, 2016 at 7:34 am

    Of course it doesn’t solve anything but they have to start somewhere……this is only the very beginning of the end…….and it hasn’t passed yet anyway. It’s all bullshit that’s why there is such a serious problem

    Reply

  5. Posted by MJ on April 25, 2016 at 7:38 am

    It does state that terminating the fund all together is an option……..ha ha ha

    Reply

  6. Posted by George on April 25, 2016 at 8:55 pm

    Can a former US Senator add their new spouse to their pension and health benefits after they leave office?

    Former Senator Harris Wofford, 90, set to marry man 20 years after wife’s death
    http://www.al.com/news/index.ssf/2016/04/former_senator_harris_wofford.html

    Wofford’s benefits will run on for a likely 40 years if the benefits are joint survivor and a 40 year old is added to his benefits package.

    Reply

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