Did High Fees and Poor Performance Cost NYC’s Pensions $2.5 Billion?

June 18, 2015 at 12:24 pm

According to a report issued by the New York City comptroller‘s office in April, high fees and poor performance by Wall Street money managers cost the city’s public pension system $2.5 billion in “lost value” over the past ten years.

What exactly does this mean, especially for the pensions’ beneficiaries and for New York taxpayers? How did it happen? And what can be done to avoid similar losses in the future?

Steve Malanga, senior fellow at the Manhattan Institute, and James Parrott, deputy director and chief economist at the Fiscal Policy Institute, joined host Rafael Pi Roman to discuss the answers.