Multiemployer Plans

12 Months Ended

Dec. 31, 2022

Multiemployer Plans

Multiemployer Plans

Note 14 — Multiemployer Plans

Union Plans—Various subsidiaries are signatories to collective bargaining agreements. These agreements require that we participate in and contribute to a number of multiemployer benefit plans for our union employees at rates determined by the agreements. The trustees for each multiemployer plan determine the eligibility and allocations of contributions and benefit amounts, determine the types of benefits and administer the plan.

We contributed $46.2 million, $39.7 million, and $48.4 million, to multiemployer pension plans for the years ended December 31, 2022, 2021 and 2020, respectively. These costs were charged to the related construction contracts in process. Contributions during 2022 were higher than 2021 as a result of a greater number of man-hours worked by our union labor and the acquisition of PLH.

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 stops contributing to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers.

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

Under U.S. legislation regarding multiemployer pension plans, an employer is required to pay an amount that represents its proportionate share of a plan’s unfunded vested benefits in the event of withdrawal from a plan or upon plan termination.

We participate in a number of multiemployer pension plans, and our potential withdrawal obligation may be significant. Any withdrawal liability would be recorded when it is probable that a liability exists and can be reasonably estimated, in accordance with GAAP. We have no plans to withdraw from any labor agreements.

During the last three years, we made annual contributions to 42 pension plans. None of the significant pension plans we contributed to below listed us in the plan’s Form 5500 as providing more than 5% of the plan’s total contributions during the years ended December 31, 2022, 2021 and 2020.

Our participation in significant plans for the years ended December 31, 2022, 2021 and 2020 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 we received from the plan and is certified by the plan’s actuary. Among other factors, plans in the red zone are generally less than 65 percent funded, plans in the yellow zone are less than 80 percent funded, and plans in the green zone are 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 next column lists the expiration date of our collective bargaining agreement related to the plan.

Collective

FIP/RP

Bargaining

EIN /

Pension Protection Act

Status

Agreement

Contributions of the Company

Pension Plan

Zone Status

Pending /

Surcharge

Expiration

(In Thousands)

Pension Fund Name

Number

2022

2021

Implemented

Imposed

Date

2022

2021

2020

Central Pension Fund of the International Union of Operating Engineers and Participating Employers

36-6052390/001

Green as of January 31, 2022

Green as of January 31, 2021

No

No

6/4/2023

$

5,592

$

4,985

$

7,734

Minnesota Laborers Pension Fund

41-6159599/001

Green as of December 31, 2021

Green as of December 31, 2020

No

No

6/1/2025

3,749

3,299

3,386

Laborers Pension Trust Fund for Northern California

94-6277608/001

Green as of May 31, 2022

Green as of May 31, 2021

No

No

6/30/2023

3,699

3,943

2,581

Construction Laborers Pension Trust for Southern California

43-6159056/001

Green as of December 31, 2021

Green as of December 31, 2020

No

No

8/15/2023

3,595

3,254

2,844

Southern California Pipe Trades Trust Funds

51-6108443/001

Green as of December 31, 2021

Green as of December 31, 2020

No

No

8/31/2026

3,268

3,456

3,312

United Association National Pension Fund

52-6152779/002

Green as of June 30, 2022

Yellow as of June 30 2021

No

No

9/30/2022

2,859

3,510

3,570

Laborers International Union of North America National Pension Fund

52-6074345/001

Green as of December 31, 2021

Green as of December 31, 2020

No

No

6/1/2025

2,534

2,832

5,206

Contributions to significant plans

25,296

25,279

28,633

Contributions to other multiemployer plans

20,867

14,391

19,764

Total contributions made

$

46,163

$

39,670

$

48,397