Abstract: This paper gives the proposal that,considering the poor incoming of pension funds,a part of in dividual income tax can be transferred into individual pension account.That not only can raise pension funds,but also improve peoples enthusiasm to pay personal income tax,which lead to smoothly implemen tation of the reform of government organizations and institutions pension insurance.This paper builds an actuarial model based on the present calculation and issuing approach,then comparative analysis of the transferred and non transferred cases of different wage levels and growth rates,different accumulation rates of funds,different retirement age for individual accounts that affect the level of pension insurance.

Key words: individual account pension, individual income tax, actuarial model, substitution rate