the staff of the Ridgewood blog
Atlantic City NJ — A nearly century-old law is creating modern financial headaches for some of New Jersey’s beloved beach towns.
According to a newly released report from the Office of the State Comptroller (OSC), six municipalities along the Atlantic Ocean are facing more than $34 million in unfunded pension liabilities due to a 1928 law mandating a generous pension plan for municipal lifeguards in so-called “fourth-class cities.”
🏖️ Lifeguard Law Turns Costly: The Breakdown
The OSC report highlights that 11 out of about 40 shore towns fall under this legal requirement, with one non-eligible town—Longport Borough—voluntarily opting in to the pension program in 1987.
Using financial data from 2020 through 2022, the report shows:
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Six towns — Atlantic City, Brigantine, Longport, Margate, Sea Isle City, and Ventnor — collectively owe $37 million, with $34.2 million unfunded.
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Asbury Park and Long Branch never implemented pension plans, despite being legally obligated.
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Cape May, Wildwood, North Wildwood, and Ocean City failed to file required actuarial assessments, leaving the true scope of their liabilities unknown.
💰 How the Lifeguard Pension System Works
Under this program, lifeguards who complete 20 years of service can begin collecting a pension at age 45. Here’s how that compares to standard state pensions:
| Category | Lifeguard Pensions | NJ State Pensions |
|---|---|---|
| Retirement Age | 45 | 65 |
| Employee Contribution | 4% | 7.5% |
| Average Annual Benefit | $9,100 | Varies |
| Highest Annual Benefit | $60,900 | Varies |
| Overtime Included? | Yes (in some towns) | No |
The report found 206 retired lifeguards currently drawing pensions, and over half (104) are also collecting from other public pension systems, such as the Teachers’ Pension and Annuity Fund, raising double-dipping concerns.
⚠️ A Burden on Junior Lifeguards?
OSC revealed another problem: municipalities keep contributions from seasonal lifeguards who leave before qualifying for a pension—except in North Wildwood, which refunds them. This, according to the report, unfairly taxes the labor of younger, short-term lifeguards to fund long-term retiree pensions.
📉 The Comptroller’s Verdict: Time for Reform
Acting State Comptroller Kevin Walsh didn’t mince words:
“The state needs to scrap the pension mandate. It saddles a small number of municipalities with a significant financial burden, and it just doesn’t make sense to give lifelong pensions for seasonal jobs.”
The report recommends the New Jersey Legislature amend or repeal the 1928 law, especially for new hires, and work with current pensioners on possible adjustments.
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🌊 Final Thought
As the summer season brings thousands of visitors to New Jersey beaches, municipalities are drowning in pension debt, thanks to outdated policy and lax oversight. With lifeguard pensions in the spotlight, lawmakers and taxpayers may soon be asking: Are we paying too much to protect our shores?
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Unfunded liabilities? Democrats and Republicans are both to blame. FREEZE the state budget for 10 years, make the hard decisions, and fix this thing.
The can stopped bouncing years ago………………………
Might be time to develop a solution, but it’s easier to apportion the BLAME