The California Public Employees' Retirement System bounced back from the global economic meltdown this year as the value of its investments grew by about $21 billion.

Preliminary estimates show the portfolio held by the nation's largest public pension fund grew 11.4 percent to $200 billion during the fiscal year ended June 30, 2010.

That represents a turnaround from the year-earlier period - when Cal-PERS' holdings tumbled 24 percent to under $180 billion.

"We're definitely in the recovery mode with the opportunity to capture future returns because of our long-term investment horizon," said Joseph Dear, CalPERS chief investment officer.

The giant pension fund said the value of its global fixed-income investment rose 19.5 percent while private equity holdings increased 30.9 percent.

Public stocks gained 14.4 percent while real estate investments were down 37.1 percent.

Like most major retirement funds and endowments, CalPERS' 2008-2009 performance was hit hard by the global financial crisis.

Other institutions, such as Harvard and Yale universities, suffered 20 percent to 30 percent declines during that period.

Last year's decrease prompted CalPERS' board in June to raise the state's pension contributions by $600 million.

The rebound will likely mean that any increases in contributions for next year won't be as sharp.

"This puts us on a much better footing," said CalPERS spokesman Wayne Davis.

Founded in 1932, CalPERS oversees the retirement benefits for 1.6 million active and retired state, public school and local public agency employees and their families.

It also administers the health benefits for 1.3 million members.

The pension fund has come under increased public scrutiny recently over bribery allegations against former board member Alfred Villalobos and other CalPERS officials. In a civil lawsuit, state Attorney General Jerry Brown has accused Villalobos of lavishing CalPERS officials with gifts to get the fund to invest with his private equity clients.

CalPERS said Thursday that it has saved $100 million in fees charged by its outside investment partners during its latest fiscal year.

The pension fund said it also eliminated several low-performing investments and put into place new risk management tools.