Newport Beach Lifeguards Accept Reduced Pension Benefits to Avoid Layoffs

Newport Beach lifeguards have agreed to accept reduced pension benefits to avoid layoffs.

The City Council on Tuesday approved a deal with the Lifeguard Management Association that keeps lifeguard staffing at its current level while saving the city about $700,000.

Under the agreement, lifeguards will now pay 9 percent of their salaries toward their pensions instead of the current 3.5 percent. Upon retiring, current lifeguards receive up to 90 percent of their highest salary after 30 years of employment. Now, newly hired lifeguards’ pensions will be up to 50 percent less than that.

Councilman Keith Curry called the deal arrived at earlier this month “historic.”

“I just want to commend lifeguard personnel who worked with the city manager to reach this agreement,” he said.

Lifeguard compensation in Newport Beach was last month with a flood of media reports focusing on the salaries and pension costs of the city's 13 full-time lifeguards, who average about $100,000 per year, with benefits that can swell their overall compensation packages to more than $200,000 annually.   

A proposed budget called for cutting full-time lifeguard positions.

"Everyone involved in this issue at the city of Newport Beach is working toward a sustainable solution that will help alleviate some of the city's fiscal pressures," a May statement from the city said. "Together, we are confident that we will be able to continue to provide excellent lifeguard service and reduce our operating costs to maintain long-term sustainability."

That solution, it appears, has been found.

In addition to shrinking lifeguard pension benefits, which has been approved by members of the lifeguard union, overtime pay and other special pay to lifeguards will be reduced, and one lifeguard employee will spend about 60 percent of his or her time working with the Police Department.