One of the first lessons I learned practicing ERISA law is that memories fade, people leave, and years later everyone swears something happened—until they’re asked to prove it.
That’s when documentation becomes priceless.
I’ve 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: “Do you have meeting minutes?”
Silence.
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’re not going to rely on someone’s recollection of a meeting. They’re going to ask for documentation.
Minutes don’t 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.
The same goes for committee charters, investment reviews, fee benchmarking, cybersecurity discussions, and service provider evaluations. These aren’t documents you prepare because you expect litigation. You prepare them because they’re evidence that the fiduciaries took their responsibilities seriously.
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.
Good fiduciaries don’t just make prudent decisions. They create a record showing how those decisions were reached.
When I tell clients, “If it isn’t documented, it didn’t happen,” I’m not suggesting their work has no value. I’m reminding them that in the ERISA world, good intentions aren’t evidence.
A few pages of meeting minutes today can save thousands of dollars—and countless headaches—years from now.