This booklet is part of a series of monographs focusing on conflicts of interest in different sectors of the financial industry. This particular study examines a number of conflict-of-interest problems related to the management of public pension funds. In his discussion, the author analyzes a variety of related problems, such as the selection of investment managers and the pressure to allocate brokerage commissions and custodian services to local firms. Separate short chapters discuss the management of public pension fund investments, the role of public pension fund trustees, preference for local interests in managing and investing pension funds, investment of pension funds in common stocks and selection of securities brokers and analysts, investment of pension funds in fixed-income securities, and future prospects for the Social Security system. (JG)