This paper discusses the properties of the pension and relevant principles of accounting treatment, the contents of the pension accounting treatment, and the pension plan, etc.

The paper introduces the reformation and current situation of old-age social insurance in china, and then analyzes the effect of pay-as-you-go pension plan upon human capital investment, saving and economic growth using an overlapping model with an endogenous variable of human capital investment based on the urban-rural separation of old-age social insurance.