Home Breadcrumb caret Industry News Breadcrumb caret Industry Breadcrumb caret Planning and Advice Breadcrumb caret Practice Understanding DB pension plan contributions Pension sponsors could be contributing improperly to their plans. September 30, 2013 | Last updated on September 30, 2013 1 min read Pension sponsors’ contributions to their defined benefit plans are driven by the results of plan solvency valuations. Unfortunately, the common valuations used to calculate solvency liabilities aren’t always accurate, which means sponsors could be contributing too little or too much to their plans, says Brent Simmons of Sun Life Financial. In an article for BenefitsCanada.com, he says he’s seen plans with solvency liabilities off by 5%-to-10%. That means these plans were underfunded or overfunded by millions of dollars. Read more on how DB pension plans work. Also check out: Trouble ahead for pensions Build retirement funds for longer-living clients New solutions for DC plans Save Stroke 1 Print Group 8 Share LI logo