Other Retirement Plans

Multi-Employer Plans. Certain of MasTec’s subsidiaries contribute amounts to multi-employer pension and other multi-employer benefit plans and trusts, which are recorded as a component of employee wages and salaries within costs of revenue, excluding depreciation and amortization. Contributions are generally based on fixed amounts per hour per employee for employees covered under these plans. 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.

The Pension Protection Act of 2006 (“the PPA”) defines the funding rules for defined benefit pension plans and establishes funding classifications for multi-employer pension plans. Under the PPA, plans are classified into one of four categories based on multiple factors, including their funded percentage, cash flow position, and whether the plan is projecting a minimum funding deficiency. The classifications, which are referred to as a plan's "zone status," are: Green (Safe), Yellow (Endangered), Orange (Seriously Endangered), and Red (Critical). Although multiple factors or tests may determine a plan's zone status, plans in the Red zone are generally less than 65% funded; plans in the Orange zone are generally between 65% and 70% funded; plans in the Yellow zone are generally between 70% and 80% funded; and plans in the Green zone are generally greater than 80% funded.

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.

Details of significant multi-employer pension plans as of and for the periods indicated, based upon information available to the Company from plan administrators as well as publicly available information on the U.S. Department of Labor website, are provided in the following table:

Contributions

(in millions)

Years Ended December 31,

Pension Protection Act Zone Status

Multi-Employer Pension Plan

Employer Identification Number

Plan Number

2013

2012

2011

Expiration

Date of CBA

2013

As of

2012

As of

FIP/RP Status

Surcharge

Central Pension Fund of the IUOE and Participating Employers

366052390

001

10.8

6.0

4.4

01/31/2014

Green

01/31/2013

(a)

Green

01/31/2012

(a)

Pipeline Industry Pension Fund

736146433

001

9.8

8.9

6.2

05/31/2014

Green

12/31/2012

(b)

Green

12/31/2011

(b)

Operating Engineers Local 324 Pension Fund

381900637

001

4.5

0.8

—

01/31/2014

Red

04/30/2013

Red

04/30/2012

Implemented

Yes

Michigan Laborers Pension Fund

386233976

001

4.3

0.9

0.2

01/31/2014

Yellow

08/31/2013

(a)

Green

08/31/2012

Implemented

Teamsters National Pipeline Pension Fund (c)

461102851

001

2.7

1.4

—

01/31/2014

Green

12/31/2012

(b)

Eighth District Electrical Pension Fund

846100393

001

2.2

1.3

0.5

02/28/2015

Green

03/31/2013

Green

03/31/2012

(a)

Implemented

Laborers National Pension Fund

751280827

001

1.1

1.5

0.5

01/31/2014

Green

12/31/2012

Green

12/31/2011

Laborers District Council and Contractors Pension Fund of Ohio

316129964

001

0.7

0.1

01/31/2014

Green

12/31/2012

Green

12/31/2011

Midwest Operating Engineers Pension Trust Fund

366140097

001

0.7

0.0

—

01/31/2014

Yellow

03/31/2013

(a)

Green

03/31/2012

(a)

Implemented

Yes

I.B.E.W. Local 769 Management Pension Plan A

866049763

001

0.7

0.1

0.0

07/30/2016

Green

06/30/2012

Green

06/30/2011

(b)

Laborers Local Union No. 158 Pension Fund

236580323

001

0.5

0.6

0.7

01/31/2014

Green

12/31/2012

(b)

Green

12/31/2011

(b)

West Virginia Laborers Pension Trust Fund

556026775

001

0.5

0.9

0.4

01/31/2014

Green

03/31/2013

Green

03/31/2012

Laborers District Council of Western Pennsylvania Pension Fund

256135576

001

0.4

0.6

0.3

01/31/2014

Red

12/31/2012

Yellow

12/31/2011

Implemented

Yes

Laborers Pension Trust Fund for Northern Nevada

880138600

001

0.1

0.2

0.8

01/31/2014

Green

05/31/2013

Green

05/31/2012

(b)

Operating Engineers Pension Trust Fund

946090764

001

0.0

—

1.2

01/31/2014

Orange

12/31/2012

Orange

12/31/2011

Implemented

Yes

Central States, Southeast and Southwest Areas Pension Plan (d)

366044243

001

—

0.9

01/31/2014

Red

12/31/2012

Red

12/31/2011

Implemented

Other funds

5.6

4.6

3.3

Total multi-employer pension plan contributions

44.6

27.9

19.5


(a)	This plan has utilized extended amortization provisions, which provide plans with extensions of time to amortize pension funding shortfalls.


(b)	The Company’s contributions to this plan represent greater than 5% of the plan's total contributions.


(c)	The Teamsters National Pipeline Pension Fund was established in 2012.


(d)	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 discussion below and in Note 16 – Commitments and Contingencies.

Total contributions to multi-employer 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
2013	778	2,734	$	44.6	$	3.6	$	48.2
2012	308	2,509	$	27.9	$	1.3	$	29.2
2011	308	1,538	$	19.5	$	1.2	$	20.7

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.

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 charge of $6.4 million in 2011, which was recorded within costs of revenue, excluding depreciation and amortization. As of December 31, 2013, $5.4 million of this withdrawal liability remained outstanding. 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, 2013. See Note 16 – Commitments and Contingencies for additional information.