In this paper, we investigate the performance of handoff algorithms for the IS-95A and IS-95B standards. We compare the performance of the algorithms specified in the standards with enhanced base station processing that we refer to as the base-station assisted handoff (BAHO) algorithm. Since soft handoff performance in code division multiple access (CDMA) networks is a function of the system's operating load on the air interface, we study the performance of these handoff algorithms using system-level simulations. At the same carried load, the handoff algorithms and the parameter settings determine the rate (and capacity) of handoff activity (for example, leg drops, adds) and the soft handoff overhead (for example, messaging processing, bandwidth) in terms of number of legs and network infrastructure processing. Based on our observations of the aforementioned performance metrics, we provide recommendations on handoff algorithms and parameter values. These recommendations would enable a CDMA system to retain quality while achieving handoff efficiency that improves cell-site capacity. The results from our simulations provide significant insight into the handoff management for IS-95 systems, as well as for future third-generation (3G) systems.