Employee Benefit Plans

12 Months Ended

Jun. 30, 2022

Retirement Benefits [Abstract]

Employee Benefit Plans

Employee Benefit Plans

Defined Contribution Plans

We sponsor 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. We match 100% of the first 3% of employee contributions and 50% of the next 2% of employee contributions. Our matching contributions vest immediately.

Our matching contributions were $5.3 million, $5.4 million, and $6.2 million in the fiscal years ended June 30, 2022, 2021, and 2020, respectively.

Multiemployer Pension Plans

We contribute to a number of multiemployer defined benefit pension plans in the U.S. and Canada under the terms of collective-bargaining agreements that cover our union-represented employees, who are represented by more than 100 local unions. The related collective-bargaining agreements between those organizations and us, which specify the rate at which we must contribute to the multi-employer defined pension plan, expire at different times between 2022 and 2025. Benefits under these plans are generally based on compensation levels and years of service.

For us, 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, 2022 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
		2022	2021		2022		2021		2020
					(In thousands)
Boilermaker-Blacksmith National Pension Trust	48-6168020/001	Yellow	Yellow	Implemented	$	5,208	$	4,003	$	6,634	No
National Electrical Benefit Fund, IBEW locals 71, 126, 488, and 1319	53-0181657/001	Described below (1)	Green	NA	2,973		1,865		2,674		No
Joint Pension Fund Local Union 164 IBEW	22-6031199/001	Described below (1)	Described below (1)	Implemented	1,514		1,958		1,560		No
Joint Pension Fund of Local Union No 102 IBEW	22-1615726/001	Described below (1)	Green	NA	906		1,341		1,227		No
IBEW Local 456 Pension Plan	22-6238995/001	Green	Green	NA	734		595		427		No
Local 351 IBEW Pension Plan	22-3417366/001	Green	Green	NA	395		479		1,709		No
Steamfitters Local Union No 420 Pension Plan	23-2004424/001	Described below (1)	Red	Implemented	498		442		1,523		Yes
IBEW Local 654 Pension Plan	23-6538183/001	Green	Green	NA	857		818		1,021		No
Ohio Carpenters' Pension Fund, Locals 1090 and 351	34-6574360/001	Described below (1)	Red	Implemented	—		—		3,042		Yes
Iron Workers Pension Plan, Local 55	34-6682351/001	Described below (1)	Green	NA	—		—		2,951		No
Northwestern Ohio Plumbers and Pipefitters Pension, Local 50	34-6502487/001	Described below (1)	Green	NA	—		—		2,504		No
Indiana Laborers Pension Fund	35-6027150/001	Described below (1)	Green	NA	—		20		1,604		No
Iron Workers Mid-America Pension Plan, Local 395	36-6488227/001	Green	Green	NA	—		—		840		No
Pipefitters Retirement Fund, Local 597	62-6105084/001	Described below (1)	Green	NA	4		—		835		No
Iron Workers Pension Plan of Western Pennsylvania, Local 3	25-1283169/001	Green	Green	NA	—		—		500		No
		Contributions to other multiemployer plans			3,729		3,848		8,352
		Total contributions made			$	16,818	$	15,369	$	37,403

(1)For the National Electrical Benefit Fund for Locals 71/126/488/1319, Local 164 IBEW Pension Plan, Local IBEW 102 IBEW Pension Plan, Steamfitters Local Union No. 420 Pension Plan, Locals 1090 and 351 of the Ohio Carpenters' Pension Fund, Iron Workers Pension Plan Local 55, Northwestern Ohio Plumbers and Pipefitters Pension Local 50, Indiana Laborers Pension Fund, and Pipefitters Retirement Fund Local 597, we have not received a funding notification that covers our fiscal year 2022 during the preparation of this Form 10-K. For Local 164 IBEW Pension Plan, we have not received a funding notification that covers our fiscal year 2021 either. 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. We 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/2022-funding-status-notices#2020-c-and-d.

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 us 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. We have made 1,000,000 shares available under the ESPP. The ESPP can be terminated at any time at the discretion of the Board of Directors and will automatically terminate once the plan shares are exhausted. Shares are issued from Treasury Stock under the ESPP. There were 29,826 shares issued in fiscal 2022, 29,171 shares in fiscal 2021, and 20,733 shares in fiscal 2020.