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 $6.2 million, $5.8 million, and $5.5 million for the fiscal years ended June 30, 2019, 2018 and 2017, 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, 2019 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

2019

2018

2019

2018

2017

(In thousands)

Boilermaker-Blacksmith National Pension Trust

48-6168020/001

Red

Yellow

Yes

12,434

8,525

7,098

Yes

Described below ⁽¹⁾

Joint Pension Fund Local Union 164 IBEW

22-6031199/001

Described below ⁽²⁾

Yellow

Yes

2,180

2,391

2,709

5/31/2021

Joint Pension Fund of Local Union No 102 IBEW

22-1615726/001

Green

N/A

1,610

2,489

2,392

5/31/2022

IBEW Local 456 Pension Plan

22-6238995/001

Green

N/A

574

6,005

2,777

5/31/2021

Local 351 IBEW Pension Plan

22-3417366/001

Green

N/A

2,025

1,187

2,796

12/4/2021

Steamfitters Local Union No 420 Pension Plan

23-2004424/001

Red

Yes

639

1,558

2,234

Yes

4/30/2020

IBEW Local Union 98 Pension Plan

23-1990722/001

Described below ⁽²⁾

Red

Yes

828

1,106

1,519

Yes

5/29/2020

Indiana Laborers Pension Fund

35-6027150/001

Described below ⁽²⁾

Yellow

Yes

3,349

3,542

2,458

5/31/2020

Iron Workers Mid-America Pension Plan, Local 395

36-6488227/001

Green

N/A

2,596

4,412

1,785

5/31/2024

Pipe Fitters Retirement Fund, Local 597

62-6105084/001

Green

N/A

3,469

3,682

2,563

Described below ⁽³⁾

Iron Workers Pension Plan of Western Pennsylvania, Local 3

25-1283169/001

Yellow

Yes

2,317

1,539

748

5/1/2021

Iron Workers Pension Plan, Local 55

34-6682351/001

Described below ⁽²⁾

Green

N/A

4,333

198

—

6/30/2020

National Electrical Benefit Fund, Local 488

53-0181657/001

Green

N/A

4,577

824

116

1/1/2023

Connecticut Plumbers and Pipefitters Pension Fund, Local 777

06-6050353/001

Green

N/A

3,307

115

—

6/1/2020

Contributions to other multiemployer plans

20,148

17,151

19,514

Total contributions made

64,386

54,724

48,709


(1)	Our employees are members of several Boilermaker unions that participate in the Boilermaker-Blacksmith National Pension Trust. The most significant of these unions are Boilermakers Local 374 and Boilermakers Local 128, which have collective bargaining agreements that expire on December 31, 2019 and April 30, 2022, respectively.

(2)

For the Local 164 IBEW Pension Plan, Local 98 IBEW Pension Plan, Indiana Laborers Pension Fund, and Iron Workers Pension Plan Local 55, the Company has not received a funding notification that covers the Company's fiscal year 2019 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 these plans have not submitted any Critical or Endangered Status Notices to the Department of Labor for calendar years that we have not received notification. The Critical or Endangered Status Notices can be accessed at https://www.dol.gov/agencies/ebsa/about-ebsa/our-activities/public-disclosure/2019-funding-status-notices.


(3)	The Company's collective bargaining agreement with Pipe Fitters Local 597 does not have an expiration date. The agreement was last renegotiated in 2012.

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 from the Company at the current 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 15,812 shares issued in fiscal 2019, 21,920 shares in fiscal 2018, and 16,609 shares in fiscal 2017.