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 $4.9 million, $4.1 million and $3.4 million for the twelve months ended June 30, 2015, 2014, and 2013, respectively.

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.

Our participation in significant plans for the fiscal year ended June 30, 2015 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

2015

2014

2015

2014

2013

(In thousands)

Joint Pension Fund Local Union 164 IBEW ⁽¹⁾

22-6031199/001

Yellow

Yes

3,026

2,955

3,943

5/31/2017

Boilermaker-Blacksmith National Pension Trust

48-6168020/001

Yellow

Yes

8,330

3,271

2,882

Described below (2)

Joint Pension Fund of Local Union No 102 ⁽³⁾

22-1615726/001

Green

N/A

2,395

2,381

2,387

6/1/2018

IBEW Local 456 Pension Plan ⁽⁴⁾

22-6238995/001

Yellow

Yes

788

940

2,384

5/31/2017

Local 351 IBEW Pension Plan

22-3417366/001

Described below (5)

2,608

2,218

2,281

Described below (5)

9/27/2016

Steamfitters Local Union No 420 Pension Plan

23-2004424/001

Red

Yes

937

1,677

1,622

Yes

4/30/2017

IBEW Local Union 98 Pension Plan

23-1990722/001

Yellow

Yes

2,768

1,380

1,212

5/1/2016

Indiana Laborers Pension Fund

35-6027150/001

Red

Yellow

Yes

2,519

1,268

—

Yes

5/31/2017

Iron Workers Mid-America Pension Plan ⁽⁶⁾

36-6488227/001

Green

N/A

2,605

1,156

—

5/31/2019

Plumbers & Pipefitters Local Union 74 Pension Fund

51-6015925/001

Yellow

Yes

4,473

535

—

6/15/2017

Pipe Fitters Retirement Fund, Local 597

62-6105084/001

Green

N/A

2,259

949

—

5/31/2017

Contributions to other multiemployer plans

22,282

11,639

7,754

Total contributions made

54,990

30,369

24,465


(1)	Our contributions for the Joint Pension Fund Local Union 164 IBEW exceeded 5% of total contributions for the 2013 calendar plan year. This information was not available for the 2014 calendar plan year.


(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.


(3)	Our contributions for the Joint Pension Fund of Local Union 102 exceeded 5% of total contributions for the 2013 calendar plan year. This information was not available for the 2014 calendar plan year.


(4)	Our contributions for the IBEW Local 456 Pension Plan exceeded 5% of total contributions for the 2013 calendar plan year. This information was not available for the 2014 calendar plan year.

(5)

For the Local 351 IBEW Pension Plan, the Company has not received a funding notification that covers the Company's fiscal years 2014 or 2015 during the preparation of this Form 10-K. Under Federal pension law, if a multiemployer pension plan is determined to be in critical or endangered status, the plan must provide notice of this status to participants, beneficiaries, the bargaining parties, the Pension Benefit Guaranty Corporation, and the Department of Labor. The Company also observed that the Local 351 IBEW Pension Plan has not submitted any Critical or Endangered Status Notices to the Department of Labor for either calendar years 2014 or 2015 (which can be accessed at http://www.dol.gov/ebsa/criticalstatusnotices.html).


(6)	Our contributions for the Iron Workers Mid-America Pension Plan exceeded 5% of total contributions for the 2013 calendar plan year. This information was not available for the 2014 calendar plan year.

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. There were 13,243 shares issued in fiscal 2015, 5,440 shares in fiscal 2014, and 4,452 shares in fiscal 2013.