Many pension schemes mandated by governments have accumulated large reserves. The management of these funds has a direct effect on financial sustainability and potential benefit levels. It also has important indirect effects on the overall economy, especially when the funds are large relative to the contractual savings sector and the domestic capital markets. The paper reviews strategies designed to limit potential problems arising from conflicts of interest that governments or quasi-governmental monopolies face when managing public pension reserves. An attempt is made to draw lessons from recent reforms in several OECD countries.