The California Public Employees’ Retirement System (CalPERS) has announced that the state will allocate $170 million less for retirement benefits in the fiscal year beginning July, The Wall Street Journal reports. The state should assign $3.51 billion in the fiscal year, according to report presented to the CalPERS board.

As per CalPERS, the state contributions for the fiscal year, ending in June, are estimated to be $3.68 billion. The move comes as most state employees now contribute 8% of their salary to help pay for their retirement benefits.

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