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MarZDoates

Average Case Load per TPA

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I would like to receive some feedback as to what would be considered a reasonable "client load" per administrator. CPA firms and non-CPA firms if possible.

Anyone care to share?

Thanks!

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Ours ranges from 20 to 50 plans depending on the size of the plans in assets, participants & complexity. Very hard to compare numbers from firm to firm.

We are a wholly owned affiliate of a CPA firm.

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depending on the size of the plans in assets, participants & complexity.

"Like" Capacity is always a reflection of size and complexity. Some plans, by design, will require more time resources than others; especially when attempting to get any compliance software to perform a specialized function properly. A good measure of performance would be a "percentage of revenue" from a book of plans. Obviously, more complex plans would require more skilled administrators and more time resources, so they would generate higher revenue and reduce the number of plans you would expect an administrator to handle.

Good Luck!

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I have been a supervisor who has had to make these decisions. I once had person on my team that had two clients. One was a simple PS plan. The other was a bear of a 401(k) plan that we billed out over $200k/year on it. Others had 10 -15 but they also were billing out around $200-350k/year. (We had larger client back when I worked for that company)

I think ERISA describes the better measure. I tended to look at total revenue each person was bringing in. I knew what they were being paid. I didn't have exact numbers but I know our group was being charged back a number of overhead costs. So in the end I knew that to make business sense each person had to be bringing some amount above their pay and benefit costs to cover that overhead and of course the owners wanted a profit.

I would add I think I was on to something. I started to worry the numbers were getting low at one point. I kept that concern to myself. Not that long afterwards a set of layoffs happened and the numbers went back to a range much closer to where they had been. I think someone up the food chain had been doing the same math as me.

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I have been a supervisor who has had to make these decisions. I once had person on my team that had two clients. One was a simple PS plan. The other was a bear of a 401(k) plan that we billed out over $200k/year on it. Others had 10 -15 but they also were billing out around $200-350k/year. (We had larger client back when I worked for that company)

I think ERISA describes the better measure. I tended to look at total revenue each person was bringing in. I knew what they were being paid. I didn't have exact numbers but I know our group was being charged back a number of overhead costs. So in the end I knew that to make business sense each person had to be bringing some amount above their pay and benefit costs to cover that overhead and of course the owners wanted a profit.

I would add I think I was on to something. I started to worry the numbers were getting low at one point. I kept that concern to myself. Not that long afterwards a set of layoffs happened and the numbers went back to a range much closer to where they had been. I think someone up the food chain had been doing the same math as me.

That makes sense (and makes my stomach hurt).

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I started to worry the numbers were getting low at one point. I kept that concern to myself. Not that long afterwards a set of layoffs happened and the numbers went back to a range much closer to where they had been. I think someone up the food chain had been doing the same math as me.

"Like" - Valuable perspective. This, to an extent, goes to the individual initiative to ensure they are 'earning their keep'. As an individual contributor, you should always have some idea on your value to the bottom line; as to avoid getting blind-sided with a layoff that you never saw coming.

Good Luck!

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