SACRAMENTO, CA-The California Public Employees' Retirement System (CalPERS) has increased its real estate allocation target from 9% to 11% of its portfolio. Looking at the pension plan's current $283.3 billion size, the increase could give CalPERS approximately $5.6 billion more to invest in real estate on a long-term basis, according to a report from PERE, a website of PEI Media.

These changes and others were made at a board meeting Tuesday. The new allocation was part of a strategic asset allocation plan approved at CalPERS' investment committee. The changes are set to take effect on July 1 at the start of the pension plan's 2014-2015 fiscal year.

The increase will bolster the pension's existing real estate strategy, which invests in core assets through separate accounts. A CalPERS spokesperson told PERE that it does not yet have a specific timeline for reaching the new target.