top of page 6. Can contribution amounts change each year and are they required?
• Contributions under a defined benefit plan are generally required. There are exceptions for plans that are over funded, or have chosen to “freeze” the benefits by plan amendment and have sufficient assets to cover the frozen benefits. • Contribution levels can also be modified by timely adopting plan amendments. Usually this needs to be done before the end of the sixth month in the plan year (e.g.; before 6/30 for calendar plans) or else full-time employees will already earned the benefit under the old formula. • There may be some limited ability for the actuary to modify certain funding assumptions, within reason, which can change the contribution level somewhat and possibly meet your budget.
