Abstract: The administrative ability directly affects the implementation of the pension insurance system. This paper selects 23 indexes to investigate the administrative capacity building of 120 pension insurance institutions in Shaanxi Province through questionnaires, interviews and field investigation. And through the extraction of common factors and multiple linear regression analysis, it is found that the factors that impact the pension agency capacity include the basic capacity building, ability of information management building, supportive capacity building, internal control capacity building and capacity building for external communication. At the same time, the data shows that in Shaanxi Province, the overall administrative capacity of pension agencies is relatively good, overall there is still room for improvement; but the score of individual indexes as the flow of personnel, funding and other social management is relatively low, the administrative capacity should be further improved from the aspects of implementing the staff rotation system, guaranteeing the funding channels, exploring the service outsourcing and exploring the unified social insurance management mode.

Key words: endowment insurance, administrative capacity index system, factor analysis, optimal path