City to Ask State to End Lifeguard Pensions

State law required Ocean City to establish a pension plan for Ocean City Beach Patrol lifeguards in 1988.

On Thursday night, City Council voted unanimously to ask the state to abolish the requirement.

Nobody gave any indication that the measure has any support in the state Assembly or Senate, but Ocean City council members said they're worried about growing obligations to pay into the fund.

The issue was first raised in the most recent audit of city finances. The audit report suggested the city could potentially hire an actuary to determine future lifeguard pension obligations.

Lifeguards contributed $50,000 (4 percent of their salaries) to the fund in 2013, but the fund paid out more than $160,000 to 28 lifeguards. The city picked up the difference.

Lifeguards are eligible for pensions at age 45 after 20 years of service, including 10 consecutive years before retirement. At that point, they annually collect half of their final summer's pay (or half the average of their final three summers' pay). 

Councilman Keith Hartzell successfully requested an amendment to the wording of the resolution to make it clear that "seasonal lifeguards who have been paying into the pension system should be 'grandfathered' in the event of a change in or elimination of the Lifeguard Pension Plan."

"If you took the job knowing it was there, it should remain there," Hartzell said.

Ocean City has no authority to determine any change or any details of the pension plan. The resolution that was passed on Thursday authorizes only sending a copy of the resolution to the governor and the local state Senator and Assemblymen.