Note 10 – Other Retirement Plans

Multiemployer Plans.

As discussed in Note 1 - Business, Basis of Presentation and Significant Accounting Policies, certain of MasTec’s subsidiaries are party to various collective bargaining agreements with unions representing certain of their employees, which require the Company to pay specified wages, provide certain benefits to their union employees and contribute certain amounts to MEPPs. The PPA defines the funding rules for defined benefit pension plans and establishes funding classifications for U.S.-registered multiemployer pension plans. Under the PPA, plans are classified into one of the following five categories, based on multiple factors, also referred to as a plan’s “zone status”: Green (safe), Yellow (endangered), Orange (seriously endangered), and Red (critical or critical and declining). Factors included in the determination of a plan’s zone status include: funded percentage, cash flow position and whether the plan is projecting a minimum funding deficiency.

A multiemployer plan that is so underfunded as to be in “endangered,” “seriously endangered,” “critical,” or “critical and declining” status (as determined under the PPA) is required to adopt a funding improvement plan (“FIP”) or a rehabilitation plan (“RP”), which, among other actions, could include decreased benefits and increased employer contributions, which could take the form of a surcharge on benefit 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. Certain plans in which the Company participates are in “endangered,” “seriously endangered,” “critical,” or “critical and declining” status. The amount of additional funds, if any, that the Company may be obligated to contribute to these plans in the future cannot be estimated due to the uncertainty of the future levels of work that could be required of the union employees covered by these plans, as well as the required future contribution rates and possible surcharges applicable to these plans. See Note 14 - Commitments and Contingencies for additional information.

Details of significant multiemployer 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)

For the Years Ended December 31,

Pension Protection Act Zone Status

Multiemployer Pension Plan

Employer Identification Number

Plan Number

2017

2016

2015

Expiration Date of CBA

2017

As of

2016

As of

FIP/RP Status

Surcharge

Pipeline Industry Pension Fund

736146433

001

28.8

15.9

2.5

05/31/2020

Green

12/31/2016

(a)

Green

12/31/2015

(a)

Central Pension Fund of the IUOE and Participating Employers

366052390

001

21.6

19.3

5.7

06/01/2020

Green

01/31/2017

Green

01/31/2016

Teamsters National Pipe Line Pension Plan

461102851

001

7.6

3.6

1.4

05/31/2020

Green

12/31/2016

(a)

Green

12/31/2015

(a)

Ohio Operating Engineers Pension Plan

316129968

001

4.9

—

06/01/2020

Green

07/31/2016

Green

07/31/2015

Laborers' National Pension Fund

751280827

001

3.5

3.0

0.8

05/31/2020

Green

12/31/2016

Green

12/31/2015

West Virginia Laborers' Pension Trust Fund

556026775

001

3.0

0.5

1.4

05/31/2020

Green

03/31/2017

Green

03/31/2016

(a)

Laborers' District Council & Contractors Pension Fund of Ohio

316129964

001

2.5

0.5

0.2

05/31/2020

Green

12/31/2016

Green

12/31/2015

International Union of Operating Engineers Local 132 Pension Fund

556015364

001

2.3

0.2

1.9

06/01/2020

Green

03/31/2017

Green

03/31/2016

(a)

Operating Engineers Local 324 Pension Fund

381900637

001

2.1

—

06/01/2020

Red

04/30/2017

Red

04/30/2016

Implemented

Michigan Laborers' Pension Plan

386233976

001

2.0

1.1

0.8

05/31/2020

Yellow

08/31/2017

Yellow

08/31/2016

(b)

Implemented

National Electrical Benefit Fund

530181657

001

1.8

1.7

1.4

Varies through 09/06/2020

Green

12/31/2016

Green

12/31/2015

Laborers' Local Union No. 158 Pension Plan

236580323

001

1.8

0.4

0.7

05/31/2020

Green

12/31/2016

Green

12/31/2015

(a)

IBEW Local 1249 Pension Plan

156035161

001

1.5

1.1

1.0

05/02/2021

Yellow

12/31/2016

Yellow

12/31/2015

Implemented

Central Laborers' Pension Fund

376052379

001

0.5

2.6

—

05/31/2020

Yellow

12/31/2016

(b)

Red

12/31/2015

(b)

Implemented

Other funds

8.2

(c)

10.0

(c)

6.0

(c)

Total multiemployer pension plan contributions

92.1

59.9

23.8


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


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

(c)

The 2017, 2016 and 2015 contributions include approximately $0.7 million, $0.9 million and $1.4 million, respectively, for Canadian multiemployer pension plans. Canadian multiemployer pension plans are not subject to the provisions of ERISA or the funding rules under the PPA that apply to U.S. registered multiemployer pension plans. Contributions to Canadian multiemployer pension plans are based on fixed amounts per hour per employee for employees covered under these plans.

Total contributions to multiemployer plans, and the related number of employees covered by these plans, including with respect to the Company’s Canadian operations for the periods indicated, were as follows:



	Multiemployer Plans
	Covered Employees		Contributions (in millions)
For the Years Ended December 31:	Low	High	Pension		Other Multiemployer		Total
2017	550	7,057	$	92.1	$	10.3	$	102.4
2016	550	4,910	$	59.9	$	10.1	$	70.0
2015	590	2,463	$	23.8	$	9.0	$	32.8

The number of union employees employed at any given time varies depending upon the location and number of ongoing projects and the need for union resources in connection with those projects. The fluctuations in the number of employees covered under multiemployer plans and related contributions in the tables above are primarily related to higher levels of union resource-based project activity within the Company’s oil and gas operations.