California's contribution to CalPERS will drop by $196 million, to $3.25 billion, for the fiscal year starting June 30. The reduction stems from a new rate stabilization policy adopted last month by the board of the $181.9 billion California Public Employees' Retirement System, Sacramento, according to a CalPERS news release. Gov. Arnold Schwarzenegger had cited growth in the state's pension contribution as a major reason to support a proposed switch to a defined contribution system from defined benefit. The proposed ballot measure has been deferred until June 2006.