The investment committee of the California Public Employees’ Retirement System has passed a new asset allocation model. The model provides three new investment portfolios to employers prefunding employee retiree health benefits and other post-employment benefits.

As per the new plan, employers taking part in the California Employers’ Retiree Benefit Trust can choose from one of three approved portfolios to maximize expected returns depending on the employer’s risk profile. The new portfolios will include inflation-linked bonds and commodities, as well as global equities and real estate investment trusts.

Click here for the release from CalPERS.