UPDATE 2-Calpers to boost private-equity, eyes distressed

* May boost private equity, venture target to 14 pct

* Fund sees buyout opportunities amid market slump

* Calpers last month discussed a distressed debt fund

* Calpers may vote on "opportunistic" investing in August (Adds detail on distressed investing)

By Joseph A. Giannone

NEW YORK, June 8 (Reuters) - The California Public Employees' Retirement System (Calpers) next week may boost its private-equity investment target by 40 percent, and take the first steps toward snapping up distressed debt as slumping markets create some real bargains.

The board of the country's largest public pension fund, managing $169 billion in assets, next week is scheduled to vote on a plan that would increase its target for corporate buyout and venture-capital investments to 14 percent of total assets from 10 percent.

Calpers' staff and its consultants, meanwhile, have discussed creating an "opportunistic strategy" fund that would snap up assets knocked down by the credit crisis.

If a subcommittee approves a policy for distressed investing next week, Calpers' full investment committee could vote on the new investment program on August 17.