A very high percentage of FRS participants work for entities outside of 'state government proper'- local governments, fire departments, school districts, colleges & universities, etc. retain control over their own budgets. My employer is cutting back on office supplies, travel, energy use, and other areas in order to give everyone a 3-4% raise to offset the mandatory FRS employee contribution.
Hey, I'm willing to photocopy less if it means the savings are seen in my paycheck, and I actually come out a little bit ahead- pension is calculated on gross wages, and a year earning x*1.03 (even if I don't get to keep it all) compared to the no-raise wage x alone for the year makes that calculation go up if I end up using x as one of my five highest wage years.