Wall Street gobbles up Billions of Retirement Funds. That money DOES NOT GO TO RETIREES.

http://www.dailykos.com/story/2015/04/09/1376654/-Wall-Street-has-gobbled-up-billions-of-New-York-City-pension-dollars?detail=facebook_sf

Wall Street, not retired workers, has been getting the profits from New York City's pension funds, according to the city comptroller's office. Management fees have sucked up more than $2 billion over 10 years, virtually erasing gains for the funds that provide pensions for 715,000 city workers:

Most of the funds’ money — more than 80 percent — is invested in plain vanilla assets like domestic and foreign stocks and bonds. The returns on those investments are generally reported after the fees, which are usually paid as a percent of the assets each firm manages. Over the last 10 years, the return on those “public asset classes” has surpassed expectations by more than $2 billion, according to the comptroller’s analysis. But nearly all of that extra gain — about 97 percent — has been eaten up by management fees, leaving just $40 million for the retirees, it found.
In the “private asset classes,” fees have been an even bigger drag on returns, Mr. Stringer said. To figure out just how big was not easy, he said.