October 30, 2012 – A second California city has fallen behind on its payments to CalPERS, prompting a lawsuit by the big pension fund. Compton (W&S: Ba1 / 204730BA2) owes $2.7 million to the California Public Employees’ Retirement System, the pension fund said Monday. CalPERS sued the city in Sacramento Superior Court after Compton failed to make its required payments for September. Harold Duffey, the city manager, said Monday that Compton is experiencing a short-term cash-flow problem and expects to clear up the debt before the end of the year. Compton has been facing significant financial problems and publicly flirted with a bankruptcy filing over the summer. Still, Compton’s troubles represent yet another challenge to CalPERS and the durability of public pensions in general, as cities cope with severe revenue shortfalls. San Bernardino, which filed for bankruptcy protection in August, is $5.2 million behind on its payments to CalPERS. The fund has tried to get the bankruptcy case tossed out, saying the city is using the bankruptcy law unfairly to get out of paying its bills.