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.