The designated management of Public Service Pension Funds will promote the economic development of a country. The management and performance of these fund flows. There exists a double Principal-Agent problem in managing the Public Service Pension Funds. Based on the Principal-Agent theory and the characteristics of Public Service Pension Funds, we will investigate the game between principals and agents in this research. We propose a modified principal-agent model for the designated management of Public Service Pension, by introducing appropriate parameters into the utility function in the classical principle-agent model and propose a modified utility function. Such utility function could be used to specify how much utility a principle gets for a particular designated management. Besides, residual claim could be used to solve the principal’s adverse selection and the agent’s moral hazard problems. Our results could provide the Public Service Pension Funds useful information to make decisions.