Another city has fallen behind on its payments to CalPERS, prompting a lawsuit by the big pension fund.
The city of Compton owes about $2.7 million to the California Public Employees' Retirement System, the pension fund said today. It confirmed that it sued the city in Sacramento Superior Court in September.
City Manager Harold Duffey said Compton, which flirted with bankruptcy earlier this year, was having a cash flow problem and expects to clear up the debt before the end of the year. He said a payment plan was submitted to CalPERS officials, but the pension fund went ahead with the court case anyway.
CalPERS is already facing a challenge of sorts from the bankrupt city of San Bernardino, which has fallen behind on $5.2 million worth of payments. Meanwhile, a group of creditors in Stockton's bankruptcy are trying to keep the city from making its payments to CalPERS, arguing that their debts should take precedence over those to the pension fund.
Asked about the Compton case, CalPERS spokeswoman Amy Norris said, "Contributions are required by law and if they're not paid, we do intend to pursue all obligations." The unpaid bills include payments for pensions and health insurance.
"We'll catch up in December," Duffey said.
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