Note 10 – Other Retirement Plans

Multiemployer Plans.

As discussed in Note 1 - Business, Basis of Presentation and Significant Accounting Policies, certain of MasTec’s subsidiaries are party to various collective bargaining agreements with unions representing certain of their employees, which require the Company to pay specified wages, provide certain benefits to their union employees and contribute certain amounts to MEPPs. The PPA defines the funding rules for defined benefit pension plans and establishes funding classifications for U.S.-registered multiemployer pension plans. Under the PPA, plans are classified into one of the following five categories, based on multiple factors, also referred to as a plan’s “zone status”: Green (safe), Yellow (endangered), Orange (seriously endangered), and Red (critical or critical and declining). Factors included in the determination of a plan’s zone status include: funded percentage, cash flow position and whether the plan is projecting a minimum funding deficiency.

A multiemployer plan that is so underfunded as to be in “endangered,” “seriously endangered,” “critical,” or “critical and declining” status (as determined under the PPA) is required to adopt a funding improvement plan (“FIP”) or a rehabilitation plan (“RP”), which, among other actions, could include decreased benefits and increased employer contributions, which could take the form of a surcharge on benefit contributions. These actions are intended to improve their funding status over a period of years. If a pension fund is in critical status, a participating employer must pay an automatic surcharge in addition to contributions otherwise required under the collective bargaining agreement (“CBA”). With some exceptions, the surcharge is equal to 5% of required contributions for the initial critical year and 10% for each succeeding plan year in which the plan remains in critical status. The surcharge ceases on the effective date of a CBA (or other agreement) that includes contribution and benefit terms consistent with the rehabilitation plan. Certain plans in which the Company participates are in “endangered,” “seriously endangered,” “critical,” or “critical and declining” status. The amount of additional funds, if any, that the Company may be obligated to contribute to these plans in the future cannot be estimated due to the uncertainty of the future levels of work that could be required of the union employees covered by these plans, as well as the required future contribution rates and possible surcharges applicable to these plans. See Note 14 - Commitments and Contingencies for additional information.

Details of significant multiemployer pension plans as of and for the periods indicated, based upon information available to the Company from plan administrators as well as publicly available information on the U.S. Department of Labor website, are provided in the following table:

Contributions

(in millions)

For the Years Ended December 31,

Pension Protection Act Zone Status

Multiemployer
Pension Plan

Employer Identification Number

Plan Number

2016

2015

2014

Expiration

Date of CBA

2016

As of

2015

As of

FIP/RP Status

Surcharge

Central Pension Fund of the I.U.O.E and Participating Employers

366052390

001

19.3

5.7

6.5

06/01/2017

Green

01/31/2016

Green

01/31/2015

(a)

Pipeline Industry Pension Fund

736146433

001

15.9

2.5

4.8

06/02/2017

Green

12/31/2015

(b)

Green

12/31/2014

(b)

Teamsters National Pipe Line Pension Fund

461102851

001

3.6

1.4

1.7

06/01/2017

Green

12/31/2015

(b)

Green

12/31/2014

(b)

Laborers' National Pension Fund

751280827

001

3.0

0.8

06/01/2017

Green

12/31/2015

Green

12/31/2014

Central Laborers' Pension Fund

376052379

001

2.6

—

0.1

06/01/2017

Red

12/31/2015

(a)

Red

12/31/2014

(a)

Implemented

National Electrical Benefit Fund

530181657

001

1.7

1.4

1.3

Varies through 11/30/2018

Green

12/31/2015

Green

12/31/2014

Minnesota Laborers Pension Fund

416159599

001

1.6

0.3

0.2

06/01/2017

Green

12/31/2015

Green

12/31/2014

I.B.E.W. Local 1249 Pension Plan

156035161

001

1.1

1.0

0.4

04/30/2017

Yellow

12/31/2015

Yellow

12/31/2014

Implemented

Minnesota Teamsters Construction Division Pension Plan

416187751

001

1.1

0.2

—

06/01/2017

Green

11/30/2015

(a)

Green

11/30/2014

(a)

Local Union No. 9 I.B.E.W. and Outside Contractors Pension Fund

516077720

001

1.1

0.3

0.4

05/31/2017

Green

10/31/2015

Green

10/31/2014

Michigan Laborers' Pension Fund

386233976

001

1.1

0.8

2.1

06/01/2017

Yellow

08/31/2016

Yellow

08/31/2015

(a)

Implemented

West Virginia Laborers Pension Trust Fund

556026775

001

0.5

1.4

0.4

06/01/2017

Green

03/31/2016

(b)

Green

03/31/2015

Laborers' District Council of Western Pennsylvania Pension Fund

256135576

001

0.2

0.5

1.5

06/01/2017

Red

12/31/2015

Red

12/31/2014

Implemented

Operating Engineers' Local 324 Pension Fund

381900637

001

—

1.7

06/01/2017

Red

04/30/2016

Red

04/30/2015

Implemented

Other funds

7.1

(c)

7.5

(c)

10.0

Total multiemployer pension plan contributions

59.9

23.8

31.9


(a)	This plan has utilized extended amortization provisions, which provide plans with extensions of time to amortize pension funding shortfalls.


(b)	The Company’s contributions to this plan represent greater than 5% of the plan’s total contributions.

(c)

The 2016, 2015 and 2014 contributions include approximately $0.9 million, $1.4 million and $0.9 million U.S. dollars, respectively, for Canadian multiemployer pension plans. Canadian multiemployer pension plans are not subject to the provisions of ERISA or the funding rules under the PPA that apply to U.S. registered multiemployer pension plans. Contributions to Canadian multiemployer pension plans are based on fixed amounts per hour per employee for employees covered under these plans.

Total contributions to multiemployer plans, and the related number of employees covered by these plans, including with respect to the Company’s Canadian operations for the periods indicated, were as follows:



	Multiemployer Plans
	Covered Employees		Contributions (in millions)
For the Years Ended December 31:	Low	High	Pension		Other Multiemployer		Total
2016	550	4,910	$	59.9	$	10.1	$	70.0
2015	590	2,463	$	23.8	$	9.0	$	32.8
2014	590	2,167	$	31.9	$	4.5	$	36.4

The average number of employees covered under multiemployer plans in which the Company participates has fluctuated in recent years, due primarily to changes in levels of activity of the Company’s union resource-based projects for its oil and gas operations. In addition, certain multiemployer plans have incurred higher contribution amounts and per employee contribution rates in recent years. The number of union employees employed at any given time varies depending upon the location and number of ongoing projects and the need for union resources in connection with those projects.