Employee Benefit Plans

Defined Contribution Plans

The Company sponsors defined contribution savings plans for all eligible employees meeting length of service requirements. Under the primary plan, participants may contribute an amount up to 25% of pretax annual compensation subject to certain limitations. The Company matches 100% of the first 3% of employee contributions and 50% of the next 2% of employee contributions. The Company matching contributions vest immediately.

The Company’s matching contributions were $3.4 million, $3.3 million and $3.0 million for the twelve months ended June 30, 2013, 2012, and 2011.

Multiemployer Pension Plans

The Company contributes to various union sponsored multiemployer benefit plans in the U.S. and Canada. Benefits under these plans are generally based on compensation levels and years of service.

For the Company, the financial risks of participating in multiemployer plans are different from single-employer plans in the following respects:


•	Assets contributed to the multiemployer plan by one employer may be used to provide benefits to employees of other participating employers.


•	If a participating employer discontinues contributions to a plan, the unfunded obligations of the plan may be borne by the remaining participating employers.


•	If a participating employer chooses to stop participating in a plan, a withdrawal liability may be created based on the unfunded vested benefits for all employees in the plan.

Under federal legislation regarding multiemployer pension plans, in the event of a withdrawal from a plan or plan termination, companies are required to continue funding their proportionate share of such plan’s unfunded vested benefits. We are a participant in multiple union sponsored multiemployer plans, and, as a plan participant, our potential obligation could be significant. The amount of the potential obligation is not currently ascertainable because the information required to determine such amount is not identifiable or readily available.

In September 2011, the FASB issued ASU 2011-9, requiring employers to provide additional quantitative and qualitative disclosures for multiemployer plans. Our participation in significant plans for the fiscal year ended June 30, 2013 is outlined in the table below. The “EIN/Pension Plan Number” column provides the Employer Identification Number (“EIN”) and the three digit plan number. The zone status is based on the latest information that the Company received from the plan and is certified by the plan’s actuary. Plans in the red zone are generally less than 65 percent funded, plans in the yellow zone are generally less than 80 percent funded, and plans in the green zone are generally at least 80 percent funded. The “FIP/RP Status Pending/Implemented” column indicates plans for which a financial improvement plan (“FIP”) or a rehabilitation plan (“RP”) is either pending or has been implemented. The “Surcharge Imposed” column includes plans in a red zone status that require a payment of a surcharge in excess of regular contributions. The last column lists the expiration date of the collective-bargaining agreement to which the plan is subject.

Pension Fund

EIN/Pension

Plan Number

Pension

Protection Act

Zone Status

FIP/RP

Status

Pending or

Implemented

Company Contributions

Fiscal Year

Surcharge

Imposed

Expiration

Date of

Collective-

Bargaining

Agreement

2013

2012

2013

2012

2011

(In thousands)

Joint Pension Fund Local Union 164 IBEW ⁽¹⁾

22-6031199/001

Yellow

Yes

3,943

1,538

3,054

5/31/2014

Boilermaker-Blacksmith National Pension Trust

48-6168020/001

Yellow

Yes

2,882

2,845

3,783

Described

below ⁽²⁾

Joint Pension Fund of Local Union No 102

22-1615726/001

Green

Yes

2,387

1,608

951

5/31/2014

IBEW Local 456 Pension Plan

22-6238995/001

Yellow

Yes

2,384

977

440

11/30/2013

Local 351 IBEW Pension Plan

22-3417366/001

Yellow

Yes

2,281

1,140

2,932

9/30/2013

Steamfitters Local Union No 420 Pension Plan

23-2004424/001

Red

Yes

1,622

813

878

4/30/2014

Contributions to other multiemployer plans

8,966

7,616

8,765

Total contributions made

24,465

16,537

20,803


(1)	Our contributions for the Joint Pension Fund Local Union 164 IBEW exceeded 5% of total contributions for the 2011 plan year. This information was not available for 2012.


(2)	Our collective bargaining agreements with the Boilermaker-Blacksmith National Pension Trust are under a National Maintenance Agreement platform which is evergreen in terms of expiration. However, the agreements allow for termination of the collective bargaining agreement by either party with a predetermined written notice.

Employee Stock Purchase Plan

The Matrix Service Company 2011 Employee Stock Purchase Plan (“ESPP”) was effective January 1, 2011. The ESPP allows employees to purchase shares through payroll deductions and members of the Board of Directors to purchase shares from amounts withheld from their cash retainers. Share purchases are limited to an aggregate market value of no greater than $60,000 per calendar year per participant and are purchased at market value with no discount to the participant. Contributions are with after tax earnings and are accumulated in non-interest bearing accounts for quarterly purchases of company stock. Upon the purchase of shares, the participants receive all stockholder rights including dividend and voting rights, and are permitted to sell their shares at any time. The Company has made 1,000,000 shares available under the ESPP. The ESPP can be terminated at the discretion of the Board of Directors or on January 2, 2021. Shares are issued from Treasury Stock under the ESPP. 4,452 shares were issued in fiscal 2013, 4,395 shares in fiscal 2012, and 699 shares in fiscal 2011.