If you ever want to know how strong your fiduciary process really is, don\u2019t look at the investment lineup\u2014look at your meeting minutes.<\/p>\n
I\u2019ve reviewed enough plan files to know that some committees treat minutes like an afterthought. You\u2019d see one sentence: \u201cReviewed funds. No changes.\u201d That\u2019s not a record; that\u2019s a liability.<\/p>\n
In ERISA world, silence isn\u2019t golden\u2014it\u2019s incriminating. If it\u2019s not written down, it didn\u2019t happen. The plaintiffs\u2019 attorneys love that. They\u2019ll wave your minimalist minutes in court and ask, \u201cSo what exactly did you review?\u201d<\/p>\n
Good minutes don\u2019t need to be novels. They just need to show a prudent process: which reports were discussed, what questions were asked, what decisions were made, and why. It\u2019s not paperwork\u2014it\u2019s protection.<\/p>\n
So the next time your committee wraps up a meeting early, take five more minutes to document what you did. Because when the lights go out and the subpoenas come on, silence in the minutes can be deafening.<\/p>\n
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