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While the drumbeat grows for incorporating alternatives into defined contribution plans, consulting firms are split on whether to include those investments in their pooled employer plans — some are holding off despite mounting pressure from the industry while others have already begun adding private real estate and infrastructure to those plans.

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On March 16, NEPC became the latest investment consultant to announce it was launching a PEP, allowing unrelated businesses to join together in a single, shared DC plan.

NEPC’s plan — Stratum One — will be available beginning May 1.

Mikaylee O’Connor, partner and DC team leader at NEPC said in an interview earlier this month that the firm has “spent decades advising plan sponsors on best practices in governance, investments, and fees, and the timing felt right to apply that experience within a PEP structure as the market continues to mature.” NEPC has $1.9 trillion in assets under advisement.

One asset class that won’t be part of NEPC’s PEP, at least initially, is alternatives.

“We believe adoption (of alternatives) should be thoughtful and deliberate,” O’Connor said. “Our approach is to prioritize simplicity, transparency, and cost efficiency — particularly important considerations for pooled plans with diverse participating employers and participant demographics.”

She noted the firm will continue to monitor regulatory developments, market innovation, and evolving best practices, and “may consider private or alternative investments in the future where they clearly enhance participant outcomes and can be implemented in a fiduciary‑prudent manner.”