Other Retirement Plans

12 Months Ended

Dec. 31, 2012

Multiemployer Plans [Abstract]

Other Retirement Plans

Other Retirement Plans

Multi-Employer Pension Plans. Certain of MasTec’s subsidiaries contribute amounts to multi-employer pension and other multi-employer benefit plans and trusts. Multi-employer plan contribution rates are determined annually and assessed on a “pay-as-you-go” basis based on union employee payrolls. Union payrolls cannot be determined for future periods because the number of union employees employed at any given time, and the plans in which they may participate, vary depending upon the location and number of ongoing projects at a given time and the need for union resources in connection with those projects.

ASU 2011-09, Compensation–Retirement Benefits–Multiemployer Plans (Subtopic 715-80): Disclosures about an Employer’s Participation in a Multiemployer Plan (“ASU 2011-09”) requires disclosure about an employer’s participation in multi-employer pension plans. Required disclosures include significant pension plans in which companies participate, level of participation, and financial health and nature of commitments to such plans. The Pension Protection Plan (“PPA”) of 2006 was enacted as part of a comprehensive funding reform effort for multi-employer pension plans. The PPA further defined the funding rules for defined benefit pension plans and instituted certain requirements that were designed to identify and address financial problems associated with such plans. The PPA of 2006 created new funding classifications for multi-employer pension plans. Under the PPA, plans are classified as one of the following four colors based on the plan’s financial status;

Green (Safe): A plan is generally in “safe” status if it is more than 80% funded.

Yellow (Endangered):     A plan is generally in “endangered” status if its funded percentage is less than 80%, or if it has an accumulated funding deficiency for the current plan year or is projected to have an accumulated funding deficiency for any of the next six plan years.    

Orange (Seriously Endangered): A “seriously endangered” plan generally has a funded percentage of 70% or less.    

Red (Critical):     A plan is generally in “critical” status if its funded percentage is less than 65% and it is not projected to improve its funded percentage over the next seven years; or, if a funding deficiency in excess of specified amounts is expected in the foreseeable future.

A multi-employer plan that is so underfunded as to be in “endangered” or “critical” status is required to adopt a funding improvement plan (“FIP”) or a rehabilitation plan (“RP”), which, among other actions, could include decreased benefits and increased contributions. These actions are intended to improve their funding status over a period of years. If a pension fund is in critical status, a participating employer must pay an automatic surcharge in addition to contributions otherwise required under the collective bargaining agreement (“CBA”).  With some exceptions, the surcharge is equal to 5% of required contributions for the initial critical year, and 10% for each succeeding plan year in which the plan remains in critical status. The surcharge ceases on the effective date of a CBA (or other agreement) that includes contribution and benefit terms consistent with the rehabilitation plan.

Required disclosures under ASU-2011-09, on a by-plan basis, include: amounts contributed; if plans are subject to surcharges; expiration date of related CBAs; employer and plan identification number (“EIN/Pension Plan Number”); PPA zone status; if extended amortization provisions, which provide certain plans with extensions of time to amortize pension funding shortfalls, have been utilized; the existence, and status of, any FIPs or RPs; and any plans to which companies have contributed greater than 5% of the plan’s total contributions.

Details of significant pension funds for the periods, and as of the dates indicated, based upon the information available to the Company from plan administrators as of December 31, 2012, are provided in the following table. Note that the table below may contain slight summation differences due to rounding.

	Company Contributions For the Years Ended December 31, (in millions)						Contributions Greater than 5% of Total Plan Contributions	Surcharge
Multi-employer Pension Plan	2012		2011		2010				Expiration Date of CBA
Pipeline Industry Pension Fund	$	8.9	$	6.2	$	10.3	Yes	No	05/31/2014
Central Pension Fund of the International Union of Operating Engineers and Participating Employers	6.0		4.4		4.9		No	No	01/31/2014
Laborers National Pension Fund	1.5		0.5		0.2		No	No	01/31/2014
Teamsters National Pipeline Pension Fund	1.4		—		—		(a)	(a)	01/31/2014
Eighth District Electrical Pension Fund	1.2		0.5		—		No	No	02/28/2013
West Virginia Laborers Pension Trust Fund	0.9		0.4		—		No	No	01/31/2014
Michigan Laborers Pension Fund	0.9		0.2		0.2		No	No	01/31/2014
Operating Engineers Local 324 Pension Fund	0.8		—		—		No	No	01/31/2014
New England Electrical Workers Money Purchase Plan and Trust (c) (d)	0.7		0.7		0.5		NA	NA	08/30/2012
Laborers Local Union No. 158 Pension Fund	0.6		0.7		0.4		Yes	No	01/31/2014
Laborers District Council of Western Pennsylvania Pension Fund	0.6		0.3		0.2		No	No	01/31/2014
International Brotherhood of Electrical Workers Local 1249 Pension Plan	0.6		0.3		—		No	No	05/05/2013
International Union of Operating Engineers Local 132 Pension Fund	0.5		0.3		—		No	No	01/31/2014
Operating Engineers Construction Industry and Miscellaneous Pension Fund	0.5		0.1		0.2		No	No	01/31/2014
International Union of Operating Engineers Pension Fund of Eastern Pennsylvania and Delaware	0.5		0.5		0.3		No	No	01/31/2014
Minnesota Laborers Pension Fund	0.4		0.3		1.0		No	No	01/31/2014
National Electrical Benefit Fund	0.3		0.2		0.2		No	No	05/05/2013
Southwestern Pennsylvania and Western Maryland Teamsters and Employers Pension Fund	0.3		0.1		—		No	No	01/31/2014
National Electrical Annuity Plan (c)	0.3		0.3		0.4		NA	NA	09/05/2015
Laborers Pension Trust Fund for Northern Nevada	0.2		0.8		0.4		NA	No	01/31/2014
Operating Engineers Pension Trust Fund	—		1.2		1.0		No	No	01/31/2014
Central States, Southeast and Southwest Areas Pension Plan (b)	—		0.9		0.8		No	No	01/31/2014
Western Conference of Teamsters Pension Plan	—		0.4		0.3		No	No	01/31/2014
Other funds	2.1		1.5		1.4
Total contributions	$	29.1	$	20.7	$	22.6

(a) Information not available as of December 31, 2012. The Teamsters National Pipeline Pension Fund was established in 2012.

(b) The Company’s subsidiary that participated in the Central States, Southeast and Southwest Areas Pension Plan voluntarily withdrew from this plan in November 2011. See additional discussion below and in Note 17 – Commitment and Contingencies.

(c) These plans are defined contribution multi-employer pension plans; therefore, PPA zone status disclosures in table below are not applicable.

(d) The collective bargaining agreement associated with the New England Electrical Workers Money Purchase Plan is under negotiation as of December 31, 2012.

			Pension Protection Act Zone Status
Multi-employer Pension Plan	EIN	Pension Plan Number	2012	As of	2011	As of	Extended Amortization Utilized	FIP/RP Status
Pipeline Industry Pension Fund	736146433	001	Green	12/31/2011	Green	12/31/2010	No	NA
Central Pension Fund of the International Union of Operating Engineers and Participating Employers	366052390	001	Green	01/31/2012	Green	01/31/2011	No	NA
Laborers National Pension Fund	751280827	001	Green	12/31/2011	Green	12/31/2010	No	NA
Teamsters National Pipeline Pension Fund	461102851	001	(a)	(a)	NA	NA	(a)	(a)
Eighth District Electrical Pension Fund	846100393	001	Green	03/31/2012	Green	03/31/2011	Yes	Implemented
West Virginia Laborers Pension Trust Fund	556026775	001	Green	03/31/2012	Green	03/31/2011	No	NA
Michigan Laborers Pension Fund	386233976	001	Green	8/31/2012	Yellow	08/31/2011	Yes	NA
Operating Engineers Local 324 Pension Fund	381900637	001	Red	04/30/2012	Red	04/30/2011	No	Implemented
Laborers Local Union No. 158 Pension Fund	236580323	001	Green	12/31/2011	Green	12/31/2010	No	NA
Laborers District Council of Western Pennsylvania Pension Fund	256135576	001	Red	12/31/2012	Yellow	12/31/2011	No	Implemented
International Brotherhood of Electrical Workers Local 1249 Pension Plan	156035161	001	Red	12/31/2011	Red	12/31/2010	No	Implemented
International Union of Operating Engineers Local 132 Pension Fund	556015364	001	Green	03/31/2012	Green	03/31/2011	No	NA
Operating Engineers Construction Industry and Miscellaneous Pension Fund	256135579	001	Green	12/31/2011	Yellow	12/31/2010	Yes	Implemented
International Union of Operating Engineers Pension Fund of Eastern Pennsylvania and Delaware	236405239	001	Red	12/31/2012	Green	12/31/2011	No	Pending
Minnesota Laborers Pension Fund	416159599	001	Green	12/31/2011	Green	12/31/2010	No	NA
National Electrical Benefit Fund	530181657	001	Green	12/31/2011	Green	12/31/2010	No	NA
Southwestern Pennsylvania and Western Maryland Teamsters and Employers Pension Fund	251046087	001	Red	06/30/2012	Red	06/30/2011	No	Implemented
Laborers Pension Trust Fund for Northern Nevada	880138600	001	Green	05/31/2012	Green	05/31/2011	No	NA
Operating Engineers Pension Trust Fund	946090764	001	Orange	12/31/2011	Orange	12/31/2010	No	Implemented
Central States, Southeast and Southwest Areas Pension Plan (b)	366044243	001	Red	12/31/2011	Red	12/31/2010	No	Implemented
Western Conference of Teamsters Pension Plan	916145047	001	Green	12/31/2011	Green	12/31/2010	No	NA

(a) Information not available as of December 31, 2012. The Teamsters National Pipeline Pension Fund was established in 2012.

(b) The Company’s subsidiary that participated in the Central States, Southeast and Southwest Areas Pension Plan voluntarily withdrew from this plan in November 2011. See additional discussion below and in Note 17 – Commitment and Contingencies.

The average number of employees covered under multi-employer plans in which the Company participates increased in 2011 due to the acquisition of EC Source. See Note 3 – Acquisitions and Other Investments. In addition, the number of union employees employed at any given time, and the plans in which they may participate, varies depending upon the location and number of ongoing projects at a given time and the need for union resources in connection with those projects.

Total contributions to multi-employer pension plans, and the related number of employees covered by these plans, for the periods indicated ranged as follows (dollars in millions):

	Number of Employees		Contributions to Multi-Employer Plans (in millions)
	Low	High	Pension		Post-Retirement Benefit		Total
2012	308	2,509	$	27.9	$	1.2	$	29.1
2011	308	1,538	$	19.4	$	1.3	$	20.7
2010	254	1,111	$	21.7	$	0.9	$	22.6

On November 15, 2011, the Company, along with other members of the Pipe Line Contractors Association (“PLCA”), voluntarily withdrew from the Central States Southeast and Southwest Areas Pension Fund (“Central States”), a defined benefit multi-employer pension plan. In connection with this withdrawal, the Company recorded a withdrawal liability of $6.4 million. The Company withdrew from the Central States Plan in order to mitigate its liability in connection with the plan, which is in critical status. The Company currently does not have plans to withdraw from any other multi-employer pension plan as of December 31, 2012.

See Note 17 – Commitments and Contingencies for additional information.