EMPLOYEE BENEFIT PLANS

12 Months Ended

Jan. 31, 2013

EMPLOYEE BENEFIT PLANS [Abstract]

EMPLOYEE BENEFIT PLANS

NOTE 12:              EMPLOYEE BENEFIT PLANS

Pension Plans:

The Company has several defined benefit pension plans covering eligible employees in the United States.  The Company contributes amounts to the pension plans equal to the amounts that are tax deductible.

In the third quarter ended October 31, 2006, the Company amended its defined benefit pension plans to freeze the accrual of future benefits for all its salaried and non-union hourly employees, effective on December 31, 2006.  Effective December 31, 2008, the Company amended its defined benefit pension plan to freeze the accrual of future benefits for union hourly employees.

In the fiscal year ended January 31, 2007, the Company adopted FASB ASC Topic 715, "Compensation – Retirement Benefits", which requires the recognition of the overfunded or underfunded status of its pension plans as an asset or liability, with changes in the funded status recognized through other comprehensive income in the year they occur.  The Company recognized the liability for the funded status in its consolidated balance sheets.  During the fiscal year ended January 31, 2009, the Company changed the annual measurement date and the plan year end date to January 31.

On January 31, 2013, the Company's annual measurement date, the accumulated benefit obligation related to the Company's pension plans exceeded the fair value of the pension plan assets (such excess is referred to as an unfunded accumulated benefit obligation).  This difference is principally due to the decline in the discount rate and market value of investments during the fiscal year ended January 31, 2013.

The Company recorded a pension liability adjustment in the fiscal years ended January 31, 2013 and 2012.  In both fiscal years, the adjustment was an increase in the pension liability, with a corresponding decrease to shareholders' equity, of  $177,397 and $4,228,638, respectively.

The following table provides the components of net periodic pension (income) cost:

	2013			2012			2011
Service cost	$	224,138		$	205,725		$	211,500
Interest cost		1,088,872			1,121,492			1,118,007
Expected return on plan assets		(1,219,287	)		(1,401,943	)		(1,011,021	)
Recognized net actuarial loss		439,965			209,830			243,640
Net periodic benefit cost	$	533,688		$	135,104		$	562,126

The following table sets forth the plans' change in benefit obligations, change in plan assets and amounts recognized on the Company's consolidated balance sheets at January 31, 2013 and 2012:

	2013			2012
Change in benefit obligation:
Benefit obligation at beginning of year	$	26,059,763		$	20,675,319
Service cost		224,138			205,725
Interest cost		1,088,872			1,121,492
Actuarial loss		940,869			5,371,311
Administrative expenses		(164,722	)		(259,229	)
Benefits paid		(1,102,251	)		(1,054,855	)
Benefit obligation at end of year	$	27,046,669		$	26,059,763
Change in plan assets:
Fair value of plan assets at beginning of year	$	16,343,172		$	14,807,545
Actual gain (loss) on plan assets		1,438,608			(148,700	)
Employer contribution		1,674,244			2,998,411
Administrative expenses		(164,722	)		(259,229	)
Benefits paid		(1,102,251	)		(1,054,855	)
Fair value of plan assets at end of year	$	18,189,051		$	16,343,172
Funded status:	$	(8,857,618	)	$	(9,716,591	)
Unrecognized actuarial loss		13,449,383			13,167,800
Net amount recognized	$	4,591,765		$	3,451,209
Amounts recognized in the consolidated balance sheets consist of:
Accrued benefit liability – short term	$	(94,591	)	$	(94,583	)
Accrued benefit liability – long term		(8,763,027	)		(9,622,008	)
Accumulated other comprehensive loss		13,449,383			13,167,800
Net amount recognized	$	4,591,765		$	3,451,209

The accumulated benefit obligation, projected benefit obligation, and fair value of plan assets for plans with accumulated benefit obligations in excess of assets were $27,046,669, $27,046,669, and $18,189,051, respectively, as of January  31, 2013, and $26,059,763, $26,059,763, and $16,343,172, respectively, as of January  31, 2012.

The Company contributed $1,674,244 to the pension plans during the plan year ended January 31, 2013 and expects an additional contribution of $1,194,591 during the Company's fiscal year ending January 31, 2014.

The following benefit payments are expected to be paid:

Year Ending
January 31,
2014	$	1,240,819
2015		1,314,172
2016		1,369,542
2017		1,408,435
2018		1,456,832
2019 – 2023		7,707,801
	$	14,497,601

Weighted average assumptions used in accounting for benefit obligations for the fiscal year ended January 31:

	2013		2012		2011
Discount rate		4.00%		4.25%		5.50%
Expected long-term rate of return on assets		7.50%		7.50%		8.50%

Weighted average assumptions used in accounting for net projected pension cost for the fiscal year ended January 31:

	2013		2012		2011
Discount rate		4.25%		5.50%		5.75%
Expected long-term rate of return on assets		7.50%		8.50%		8.50%

In selecting the expected long-term rate of return on asset assumption, the Company considered the average rate of earnings on the funds invested or to be invested to provide for the benefits of these plans.  This included considering the trust's asset allocation and the expected returns likely to be earned over the lives of the plans.

The table below sets forth the target allocations and asset allocations for the plan as follows:

	January 31,	January 31,
	2013	2012
Target allocation:
Equity securities	40-80%	40-80%
Debt securities	20-60%	20-60%
Asset allocation:
Equity securities	61-77%	61-77%
Debt securities	23-39%	23-39%
Total	100%	100%

The assets of the funds will be invested in a manner consistent with the safeguards and diversity to which a prudent investor would adhere and undertake on behalf of the plans' participants.  The main objective is to obtain the highest possible return commensurate with the level of assumed risk and with an investment horizon sufficient to permit market cycles to be reasonably reflected.

The fair value of the Company's pension plans' assets at January 31, 2013 by asset class are as follows:

			Quoted Prices
			in Active
			Markets for		Significant		Significant
			Identical		Observable		Unobservable
			Assets		Inputs		Inputs
	Total		(Level 1)		(Level 2)		(Level 3)
Asset Class:
Equity securities
Domestic equities (a)	$	8,219,452	$	8,219,452	$	-	$	-
Foreign equities (a)		2,938,729		2,938,729		-		-
Fixed income securities
Intermediate duration corporate and government bonds (b)		5,587,829		5,587,829		-		-
Cash and cash equivalents (c)		1,443,041		1,443,041		-		-
Total pension assets	$	18,189,051	$	18,189,051	$	-	$	-

The fair value of the Company's pension plan's assets at January 31, 2012 by asset class are as follows:

			Quoted Prices
			in Active
			Markets for		Significant		Significant
			Identical		Observable		Unobservable
			Assets		Inputs		Inputs
	Total		(Level 1)		(Level 2)		(Level 3)
Asset Class:
Equity securities
Domestic equities (a)	$	7,162,837	$	7,162,837	$	-	$	-
Foreign equities (a)		2,839,026		2,839,026		-		-
Fixed income securities
Intermediate duration corporate and government bonds (b)		5,468,502		5,468,502		-		-
Cash and cash equivalents (c)		872,807		872,807		-		-
Total pension assets	$	16,343,172	$	16,343,172	$		$	-

(a) These categories consist of various managed funds that invest primarily in common stocks, as well as other equity securities and a combination of other funds.

(b) Investments inthis category consist of a fixed income fund that invests primarily in intermediate duration bonds, as well as a combination of other funds.

(c) Cash is comprised of money market funds, which are valued utilizing the net asset value per unit based on the fair value of the underlying assets as determined by the fund's investment managers.

Directors' Benefit Plan:

The Company provides a non-qualified pension plan for Directors which is presently unfunded.  The Plan is designed to provide pension benefits based on the category of the Director and length of service.  The aggregate benefit obligation payable in the future under the terms of the Plan was $503,149 and $561,061 at January 31, 2013 and 2012, respectively.  The current portion of the benefit obligation amounted to $79,000 and $79,000, respectively, at January 31, 2013 and 2012, and is presented under the accrued salaries, wages and benefits category on the consolidated balance sheets.  The non-current portion of the benefit obligation amounted to $424,149 and $482,061, respectively, and is presented under the accrued pension retirement benefits category on the consolidated balance sheets.  The amounts applicable are included in the tables above.  This plan was discontinued in December 1999 with respect to non-vested Directors.

Defined Contribution Plan:

The Company has a 401(k) profit sharing plan in which all employees of the Company in the United States are eligible to participate, following the completion of one year of service and after attaining age 21.  Pursuant to this plan, employees can contribute up to 25% of their compensation to the Plan.  The Company will match, in the form of Met-Pro Common Shares, up to 50% of the employee's contribution up to 4% of compensation.  Effective January 1, 2007, the Company added a discretionary contribution to the Plan for non-bargaining unit employees in the United States in lieu of the Defined Benefit Plan, which was frozen on December 31, 2006 and accelerated the eligibility to participate in the 401(k) profit sharing plan from the completion of one year of service to six-months of service.  Effective February 1, 2008, the non-bargaining unit employees in the United States were eligible for the discretionary contributions under the Plan.  The discretionary contribution is (i) 2% for employees under 45 years old or with less than five years of service, (ii) 3% for employees 45 years or older and between five to nine years of service, or (iii) 4% for employees 45 years or older and with ten or more years of service.  The levels of discretionary contribution will not change with the employee's age or years of service going forward and all future eligible new hires after April 15, 2006 will receive a discretionary contribution at the 2% level.  The Company provided cash contributions to the 401(k) profit sharing plan of $799,730, $780,673 and $709,470 for the fiscal years ended January 31, 2013, 2012 and 2011, respectively.

Employees' Stock Ownership Trust:

The Company sponsors an employee stock ownership plan under which it may make discretionary contributions to the trust either in cash or in shares of the Company for salaried employees in the United States eligible to participate in the Plan.  There were no contributions to the Employees' Stock Ownership Trust for the fiscal years ended January 31, 2013, 2012 and 2011.  All shares are considered to be allocated to participants or to be released for allocation to participants, and are included in the earnings per share computations.