Abstract: This paper builds up an overlapping-generations model to study China's enterprise employee public pension,and tries to introduce factors of empty account of individual and public capital income into the model. We estimate the optimal adjustment paths of pension contribution rate and the comprehensive tax rate:1. Reducing enterprise contribution rate will increase the individual contribution rate with the substitution elasticity of 1.51, and the optimal total contribution rate will be below the current level. The decline in the growth rate of employment will increase the substitution elasticity to 1.66.2. Increasing individual contribution rate will decrease the optimal comprehensive tax rate with the substitution elasticity of 0.69. It can really reduce the tax burden. The decline in the growth rate of employment will decrease the substitution elasticity to 0.56.3. The optimal total contribution rate and the optimal comprehensive tax rate are reduced by 1.5-2 percentages after the nominal reform of individual account. So nominal reform of individual account is conducive to further reducing taxes and fees burden.

Key words: overlapping-generations model, contribution rate, comprehensive tax rate, adjustment paths