VENTNOR – Following an audit by the NJ State Comptroller’s Office, the city will be making changes to its Beach Patrol pension plan, which the city has provided to lifeguards since 1987.
The comptroller audited Fourth Class cities with populations less than 50,000 along the coast of New Jersey and recommended that the Legislature repeal the 100-year-old statute allowing pensions for lifeguards, while preserving pensions for those already vested.
In the lengthy report, the comptroller noted funding pensions is not a cost effective way of attracting and retaining seasoned lifeguards and recommended amending the law to eliminate pensions for new guards and renegotiate with current guards in the system.
The comptroller reviewed municipal audits and actuarial reports using data from 2020-2022, which estimate six municipalities, Atlantic City, Brigantine, Longport, Margate, Sea Isle City, and Ventnor, have underfunded pensions.
In Ventnor, the comptroller found that the city did not deduct the required 4% from lifeguard wages, failed to contribute to the fund, didn’t use the highest three year’s salary to calculate pension amounts, did not disclose the city’s pension liability, and lacked adequate internal controls for tracking the pensions.
Ventnor has prepared a Corrective Action Plan and has begun making changes to eliminate deficiencies. Since receiving the notice, Ventnor has appointed a new Pension Commission, which includes Beach Patrol Chief David Funk, another lifeguard and two citizen members.
The city attorney is currently reviewing the proposed changes, and the Pension Commission will review the revised plan before the Board of Commissioners takes action to approve it.
According to City Administrator Tom Ciccarone, the main changes are a clarification of how to calculate a year of service. Currently the plan says 50 days, which will be revised to 50 days or 400 hours. Also, the Beach Patrol chief and Chief Financial Officer will be required to certify hours worked.
“This was done in recognition of the fact that a guard could work 40 hours in four days and might not hit the 50 day requirement,” Ciccarone said.
The commission will also review and approve all pension applications.
There are several retired lifeguards currently collecting pensions and several who are eligible but have yet to reach the retirement age of 45. The pension pays 50% of the guards’ highest salary for life.
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