Retirement plan administration has never exactly been a thrill ride — but Pooled Employer Plans (PEPs) are giving plan sponsors a reason to pay attention. By letting multiple employers’ band together under a single retirement plan structure, PEPs promise something rare in this industry: less hassle and potential savings. Think professional oversight, shared resources, and — for plans that qualify — real audit cost reductions.
That last point came up in an unexpected way during a recent Plan Sponsor University (TPSU) session at Oregon State University’s Portland campus. Fred Barstein spoke with Patrick Tschetter, an adjunct lecturer and PEP specialist at Marsh McLennan, to unpack what’s really driving the buzz around pooled plans.
The twist? It was an auditor in the room who raised the PEP conversation — not exactly the move you’d expect from someone whose services might see reduced demand as individual plan audits become less necessary. Rather than defending the status quo, the auditor leaned into the topic, quietly undercutting the assumption that auditors have a built-in incentive to steer clients away from PEPs.
But the session also surfaced a less flattering truth: despite how much airtime PEPs get in industry circles, plenty of plan sponsors are still fuzzy on the basics — what a PEP actually is, how it functions, and whether it’s even the right fit for their organization.
Tschetter walked through the appeal. PEPs can hand off administrative headaches, unlock cost efficiencies, and shrink audit expenses for plans that cross the audit threshold. And the audience for this option is shifting — PEPs used to be seen as a small-employer play, but larger organizations are now circling them too, drawn by the promise of lighter administrative loads, offloaded responsibilities, and reduced fiduciary exposure.
Read the Full Transcript Here:
Fred Barstein: Greetings. This is Fred Barstein, CEO and founder of 401kTV and TPSU. We just completed a program here in downtown Portland at the Oregon State University campus, and I’m here with our adjunct lecturer, Patrick Tschetter. Welcome, Patrick.
Patrick Tschetter: Thank you. Thanks, Fred.
Fred Barstein: Okay, if we could ask you a few questions.
Patrick Tschetter: Absolutely.
Fred Barstein: Before we do, tell us a little bit about yourself and your firm.
Patrick Tschetter: I’m Patrick Tschetter. I work for Marsh McLennan. We’re a benefits consulting firm, and I work specifically in the retirement plan and wealth management space for Marsh McLennan.
Fred Barstein: Very good. One of the things that came up—and the response was a little surprising—was the discussion about group plans. It was brought up on the panel by your auditor, who recommended it. Can you explain what happened?
Patrick Tschetter: Yeah. I was surprised in two areas by that comment coming from an auditor and bringing up PEPs.
Number one, there was an assumption or a feeling that auditors were against PEPs because they take business away from them.
Fred Barstein: Right.
Patrick Tschetter: That was one. The second part was the reaction from the plan sponsors in the room. We talk about this all the time, but there is an assumption that plan sponsors know PEPs are out there. In reality, very few people have actually looked at or discussed them.
Fred Barstein: What are the top three benefits of a pooled employer plan?
Patrick Tschetter: I think the big three are definitely outsourcing the administrative piece. That’s a major benefit.
The potential for cost savings is certainly another one. Then there is the discussion around audit-sized plans. A pooled employer plan may be able to significantly reduce the audit costs for that plan compared with operating as a single-employer plan.
Fred Barstein: Surprisingly, a lot of larger companies that we did not initially think would join—because we thought PEPs were mostly for smaller employers—are considering them because of the potential to reduce liability.
Final question for you: Why should a plan sponsor attend a TPSU program? What’s in it for them?
Patrick Tschetter: If there’s anything I learned from today, it’s that people feel like they’re on an island. Plan sponsors especially can feel like they are dealing with these responsibilities in a vacuum.
Getting into a room and having those discussions, building camaraderie and hearing what other plan sponsors are dealing with helps them realize they’re not alone. There are resources available to help them, both from other plan sponsors and from professionals throughout the industry.
Fred Barstein: Was there anything specific that resonated with one of the plan sponsors—something they heard that really stood out?
Patrick Tschetter: I think the one that came up and was probably the most startling involved a plan sponsor who had recently gone through an RFP process.
He discussed very specifically how his advisor helped them evaluate fees versus service and really led that conversation. When you’re looking for a new vendor or going through an RFP process, it’s important to consider not only the cost, but also the level and quality of service.
The discussion that followed among the other plan sponsors was very eye-opening.
Fred Barstein: Very good. Thanks for serving as a lecturer in your first TPSU program. Congratulations.
Patrick Tschetter: Thank you.
Fred Barstein: And thank you for watching 401kTV.
