The Research Of The Regulation Of Enterprise Annuity In China Based On Principal-agent

Enterprise Annuity is also known as the enterprise supplementary endowment insurance, which enterprises established complying with state regulations and according to their own operating conditions and needs of development. Enterprise Annuity system is a supplementary endowment insurance system which providing an additional income of the pension, this is an important part of "three pillars" endowment insurance model. It is important to ensure the quality of retired workers life, as well as to maintenance social stability. In China, enterprises began to set up enterprise annuity system from 1990s, after a dozen years of rapid development, it has been initially established an enterprise pension system, but it is not perfect in many aspects, especially there are still many problems to be solved in enterprise annuity regulation.This paper first briefly introduced the system of operating and supervision in the actual situation of China. And then analyzed the multi-level agency relations among main bodies which involved in the operation of enterprise annuity, and in accordance with the different main body in the multi-level agency relations, each level of the possible composition were analyzed and summarized the agency risks which easily arise in principal-agent relations. And last, in this paper according to the theory of principal-agent, as well as to the actual situation of enterprise annuity in China, proposed establishing a Chinese framework of multi-level regulatory mechanism of checks and balances. Then provide some relevant policy recommendations to improve the supervision of the main body in each level, in order to reduce the risk of principal-agent problem in the operations of enterprise annuity, and protect the interests of the clients and the beneficiaries in the plan of enterprise annuity.