Some plan sponsors believe that holding committee meetings automatically makes them good fiduciaries. I\u2019ve sat through enough meetings to know that\u2019s not true. A calendar invite doesn\u2019t fulfill fiduciary duties. What matters is what actually happens in the room\u2014and what gets written down afterward.<\/p>\n
Too many committees meet just to meet. They review reports nobody understands, listen politely to providers who never get challenged, and approve recommendations without asking hard questions. Then they congratulate themselves for checking the fiduciary box and move on until the next quarterly meeting. That\u2019s not governance. That\u2019s theater.<\/p>\n
ERISA doesn\u2019t require perfection, but it does require process. A good committee meeting involves engagement. Why are fees structured this way? Why is this fund still on the lineup? Why hasn\u2019t participation improved? Why are forfeitures being used\u2014or not used\u2014in a particular manner? Silence is not prudence.<\/p>\n
Documentation matters just as much as discussion. If it\u2019s not in the minutes, it might as well not have happened. I\u2019ve seen excellent fiduciary decisions undermined because no one bothered to memorialize the reasoning. Plaintiffs\u2019 lawyers don\u2019t attack intentions; they attack paper\u2014or the lack of it.<\/p>\n
Committee meetings should be purposeful, focused, and honest. Sometimes that means uncomfortable conversations. Sometimes it means telling a long-time provider that change is necessary. That\u2019s not disloyalty; that\u2019s fiduciary responsibility.<\/p>\n
Good fiduciaries aren\u2019t defined by how often they meet. They\u2019re defined by the quality of the decisions they make when it counts.<\/p>\n
<\/span><\/p>","protected":false},"excerpt":{"rendered":" Some plan sponsors believe that holding committee meetings automatically makes them good fiduciaries. I\u2019ve sat through enough meetings to know that\u2019s not true. A calendar invite doesn\u2019t fulfill fiduciary duties. What matters is what actually happens in the room\u2014and what … Continue reading