Compton Pays CalPERS About $2.07M for Unpaid Benefits Amid Lawsuit
Compton has sent CalPERS about $2.07 million after the agency sued the city for withholding payments, the Sacramento Bee reports (Kasler, Sacramento Bee, 11/6).
Compton has experienced significant financial problems in recent months and publicly considered filing for bankruptcy over the summer.
Harold Duffey, the city manager, said that Compton has a short-term cash-flow problem, which should be resolved before the end of the year.
Duffey said that the city submitted a payment plan to CalPERS that pledged to "catch up in December."
However, CalPERS sued the city in Sacramento Superior Court after it withheld its September payments.
CalPERS spokesperson Amy Norris said, "Contributions are required by law, and if they're not paid, we do intend to pursue all obligations."
CalPERS said last week that Compton owes the pension fund $2.7 million, including health insurance and pension payments (California Healthline, 10/30).
Details of Payments
Last Friday, Duffey delivered a check for nearly $1.4 million to CalPERS. Another check wasÂ sent by mailÂ earlier last week.
In a release, Duffey said, "I want employees and retirees of the city of Compton to know that their retirement is not in jeopardy."On Monday, CalPERS officials said that the city still owes about $600,000 (Sacramento Bee, 11/6). This is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.