Plan Sponsor vs. Plan Administrator

A plan sponsor is an employer or designated employee of an organization that sets up the retirement plan for the organization and its employees. On the other hand, a plan administrator is a designated party responsible for running and managing the plan.

How To Become A Plan Administrator: What It Is and Career Path

What is a plan administrator and how to become one

Updated January 8, 2025

3 min read

A plan administrator is responsible for managing the benefits plan(s) of an individual or organization. He/She works with the plan provider to ensure that the plan meets the necessary regulations. He/She is tasked with ensuring the funds are properly collected and distributed to all qualified persons. Although he/she may not make investment decisions for a fund, he/she ensures the contributed fund is being invested correctly in line with its set goals.

The plan administrator takes on the tasks of plan selection and administrative decision-making. Also, he/she answers questions, concerns, and complaints from beneficiaries. For this role, the essential skills include decision-making, problem-solving, interpersonal, analytical, and communication skills. Employers seek candidates with at least a bachelor's degree in a related discipline and a minimum of two years of related experience. Your salary varies from $40,000 to $110,000. However, the average annual salary for this position is $66,273.

ScorePlan AdministratorUS Average

Salary

5.3

Avg. Salary $68,435

Avg. Salary $59,228

Stability level

6.0

Growth rate 2%

Growth rate 0.3%

Diversity

2.5

Race

American Indian and Alaska Native 0.44%

Asian 8.22%

Black or African American 10.84%

Hispanic or Latino 9.79%

Unknown 3.42%

White 67.28%

Gender

female 60.91%

male 39.09%

Age - 46

Race

American Indian and Alaska Native 3.00%

Asian 7.00%

Black or African American 14.00%

Hispanic or Latino 19.00%

White 57.00%

Gender

female 47.00%

male 53.00%

Age - 46

Stress level

6.0

Stress level is manageable

7.1 - high

Complexity level

7.6

Complexity level is challenging

7 - challenging

Work life balance

4.5

Work life balance is fair

6.4 - fair

Key steps to become a plan administrator

Explore plan administrator education requirements

Most common plan administrator degrees

Bachelor's

69.6 %

Associate

13.9 %

Master's

9.7 %

Start to develop specific plan administrator skills

Skills	Percentages
Payroll	8.62%
HR	6.92%
Plan Administration	6.18%
Database	5.50%
PowerPoint	4.30%

Complete relevant plan administrator training and internships

Accountants spend an average of Less than 1 month on post-employment, on-the-job training. New plan administrators learn the skills and techniques required for their job and employer during this time. The chart below shows how long it takes to gain competency as a plan administrator based on U.S. Bureau of Labor Statistics data and data from real plan administrator resumes.

Research plan administrator duties and responsibilities

Create custom macro to expedite data transfer of manage ESOP.
Participate in establishing and testing pension plans on PeopleSoft to automate applicable calculations.
Establish and maintain IRA, SEP, SARSEP and Keogh plans.
Gather plan date (census, assets) from clients, CPA's, attorneys, and investment brokers.

Prepare your plan administrator resume

When your background is strong enough, you can start writing your plan administrator resume.

You can use Zippia's AI resume builder to make the resume writing process easier while also making sure that you include key information that hiring managers expect to see on a plan administrator resume. You'll find resume tips and examples of skills, responsibilities, and summaries, all provided by Zippi, your career sidekick.

Choose from 10+ customizable plan administrator resume templates

Build a professional plan administrator resume in minutes. Browse through our resume examples to identify the best way to word your resume. Then choose from 10+ resume templates to create your plan administrator resume.