Nobody brags about changing the oil in their car. It’s not exciting. It doesn’t generate applause. But skip it long enough, and the engine fails.
Fiduciary governance works the same way.
Most retirement plan failures don’t happen because of dramatic market crashes or exotic investments. They happen because of neglect. Committee meetings that get postponed. Minutes that don’t get finalized. Investment policy statements that gather dust. Fee reviews that never happen because “we did one a few years ago.”
Governance is maintenance.
A prudent process means regular meetings with agendas. Documented review of investment performance against stated criteria. Fee benchmarking on a reasonable schedule. Monitoring service providers. Reviewing plan operations, including payroll practices and deposit timing.
These tasks are not glamorous. They won’t impress your employees at the holiday party. But they are what courts and regulators look for if something goes wrong.
I’ve seen sponsors defend plans with mediocre investment returns because they had excellent documentation and disciplined oversight. I’ve also seen sponsors with strong returns struggle because their governance process was informal and undocumented.
The law rewards process, not perfection.
Changing the oil doesn’t guarantee your car will never break down. It dramatically reduces the risk.
Treat your retirement plan the same way. Regular maintenance is not optional. It’s what keeps the engine running.
