One of the first lessons I learned practicing ERISA law is that memories fade, people leave, and years later everyone swears something happened\u2014until they\u2019re asked to prove it.<\/p>\n
That\u2019s when documentation becomes priceless.<\/p>\n
I\u2019ve heard plan sponsors tell me they reviewed investments every quarter, approved fee disclosures, discussed cybersecurity, and monitored their service providers. My next question is always the same: \u201cDo you have meeting minutes?\u201d<\/p>\n
Silence.<\/p>\n
Under ERISA, good fiduciary decisions matter. But being able to demonstrate the process behind those decisions matters just as much. If the Department of Labor comes calling three years from now, they\u2019re not going to rely on someone\u2019s recollection of a meeting. They\u2019re going to ask for documentation.<\/p>\n
Minutes don\u2019t have to read like a Supreme Court opinion. They simply need to reflect who attended, what was discussed, what information was reviewed, and what decisions were made. A concise, accurate record is far better than no record at all.<\/p>\n
The same goes for committee charters, investment reviews, fee benchmarking, cybersecurity discussions, and service provider evaluations. These aren\u2019t documents you prepare because you expect litigation. You prepare them because they\u2019re evidence that the fiduciaries took their responsibilities seriously.<\/p>\n
Documentation also protects against turnover. Committee members retire. HR directors move on. CFOs change jobs. Institutional knowledge walks out the door every day. Written records ensure the next group understands what decisions were made and why.<\/p>\n
Good fiduciaries don\u2019t just make prudent decisions. They create a record showing how those decisions were reached.<\/p>\n
When I tell clients, \u201cIf it isn\u2019t documented, it didn\u2019t happen,\u201d I\u2019m not suggesting their work has no value. I\u2019m reminding them that in the ERISA world, good intentions aren\u2019t evidence.<\/p>\n
A few pages of meeting minutes today can save thousands of dollars\u2014and countless headaches\u2014years from now.<\/p>\n
<\/span><\/p>","protected":false},"excerpt":{"rendered":" One of the first lessons I learned practicing ERISA law is that memories fade, people leave, and years later everyone swears something happened\u2014until they\u2019re asked to prove it. That\u2019s when documentation becomes priceless. I\u2019ve heard plan sponsors tell me they … Continue reading