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.|
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.