Abstract: During the periods of DC pensioninvestment and management, pension managers need to charge some administrative charges, which has a significant impact on the terminal wealth of individual pension accounts. At present, there are mainly two ways of charging administrative charges:charge onbalance and charge on flow, and how to get accurate administrative charges is very urgent for the pension investment and management. The Heston model is used to describe the price process of the risky asset in financial markets; and a balance (equivalent administrative charges)in these two charge ways is found. By using stochastic optimal control theory, the explicit solutions of the equivalent administrative charges are given under the cases of CARA utility and CRRA utility, respectively.From the explicit solutions, it is found that the equivalent administrative charges are only related to the risk-free interest rate, the length of the accumulation period and the representative parameters in the way of charge on flow, and the length of the accumulation period have a strong correlation with age. Finally, a numerical example is given to analyze the impact of age on the equivalent administrative charges and the impact of equivalent administrative charges on the process of wealth. The results show that:under the case of CARA utility, the equivalent administrative charges is strictly increasing in age, and under CRRA utility instead; under the case of CARA utility and the CRRA utility, the equivalent administrative charges has both positive and negative effects on the wealth of the pension account.The main conclusions of this paper will improve the research on DC pension investment and management, enrich the research on pension administrative charges, and provide reference for pension managers to make precise investment.

Key words: DC pension, Heston model, utility function, equivalent administrative charges