Fees paid by the city’s pension funds to outside investment managers and consultants have quadrupled to $426 million since 2002 despite lackluster earnings, records show.

“It’s crazy. They’re talking about laying people off and cutting teachers, while money is bleeding out of the budget for something that’s not producing services,” said John Murphy, former executive director of the city’s biggest pension system, NYCERS.

The lucrative contracts awarded to private equity and real-estate investment firms have skyrocketed from $101 million in 2002 to $426 million last fiscal year, or 322 percent. Meanwhile, overall assets of the city’s five pension funds, including stocks, rose modestly from $80.6 billion to $89.9 billion, 11.5 percent.