The California Public Employees' Retirement System is suing the city of Compton, California, for falling behind in its pension payments.
Compton owes the pension fund $2.7 million. Harold Duffey, Compton's city manager, said Monday that the city is experiencing cash-flow problems but should have the debt cleared up by the end of the year, according to a story in the Sacramento Bee.
The city considered bankruptcy because of its financial problems. San Bernardino filed for bankruptcy in August. That city owes CalPERS $5.2 million in payments.
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CalPERS would like San Bernardino's bankruptcy filing thrown out because it believes it is only trying to get out of paying what it owes, the story said.
Compton submitted a payment plan to CalPERS, promising to make up its payments by December, but the plan sued anyway.
A spokeswoman for CalPERS said that since contributions to the pension fund are required by law they have no choice but to sue if payments are missed, the story said.
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