Annual report pursuant to Section 13 and 15(d)

Multiemployer Pension Plans

v3.8.0.1
Multiemployer Pension Plans
12 Months Ended
Dec. 31, 2017
Compensation and Retirement Disclosure [Abstract]  
Multiemployer Plans [Text Block]
Note 20 – Multiemployer Pension Plans
 
The Company participates in approximately 40 multiemployer pension plans (“MEPPs”) that provide pension benefits to certain union employees in accordance with various collective bargaining agreements (“CBAs”). As of December 31, 2017, approximately 53% of the Company’s employees are members of collective bargaining units. As one of many employers who are obligated to contribute to these MEPPs, the Company is responsible with the other participating employers for any unfunded pension liabilities. The Company’s contributions to a particular MEPP are established by the applicable CBAs; however, the Company’s required contributions to a MEPP may increase based on the funded status of the individual MEPP and the legal requirements of the Pension Protection Act of 2006 (the “PPA”), which requires substantially underfunded MEPPs to implement a funding improvement plan (“FIP”) or a rehabilitation plan (“RP”) to improve their funded status. Factors that could impact the funded status of a MEPP include, without limitation, investment performance, changes in participant demographics, a decline in the number of actively employed covered employees, a decline in the number of contributing employers, changes in actuarial assumptions and the utilization of extended amortization provisions. If a contributing employer stops contributing to a MEPP, the unfunded obligations of the MEPP may be borne by the remaining contributing employers. Assets contributed to an individual MEPP are pooled with contributions made by other contributing employers; the pooled assets will be used to provide benefits to the Company’s employees and the employees of the other contributing employers.
 
A FIP or RP requires a particular MEPP to adopt measures to correct its underfunded status. These measures may include, but are not limited to an increase in a contributing employer’s contribution rate, or changes to the benefits paid to retirees. In addition, the PPA requires that a 5% surcharge be levied on employer contributions for the first year commencing shortly after the date the employer receives notice that the MEPP is in critical status and a 10% surcharge on each succeeding year until a CBA is in place with terms and conditions consistent with the RP.
 
If a MEPP has unfunded pension liabilities, the Company could be obligated to make additional payments to a MEPP if the Company either ceases to have an obligation to contribute to the MEPP under a CBA or significantly reduces the Company’s contributions to the MEPP because they reduce the number of employees who are covered by the relevant MEPP for various reasons, including, but not limited to, layoffs or closure of a subsidiary. The amount of such payments (known as a complete or partial withdrawal liability) would equal the Company’s proportionate share of the MEPP’s unfunded vested benefits. Based on the information available to the Company from the MEPPs, the Company believes that some of the MEPPs to which they contribute are underfunded and are in “critical” or “endangered” status as those terms are defined by the PPA. Due to uncertainty regarding future factors that could trigger withdrawal liability, as well as the absence of specific information regarding the MEPPs’ current financial situation, the Company is unable to determine (a) the amount and timing of any future withdrawal liability, if any, and (b) whether the Company’s participation in these MEPPs could have a material adverse impact on our financial condition, results of operations or liquidity.
 
The nature and diversity of the Company’s business may result in volatility of the amount of contributions to a particular MEPP for any given period. That is because, in any given market, the Company could be working on a significant project and/or projects, which could result in an increase in the direct labor force and a corresponding increase in contributions to the MEPP(s) dictated by the applicable CBA. When that particular project(s) finishes and is not replaced, the level of direct labor would also decrease, as would the level of contributions to the particular MEPP(s). Additionally, the level of contributions to a particular MEPP could also be affected by the terms of the CBA, which could require at a particular time, an increase in the contribution rate and/or surcharges.
 
Total contributions to the various union construction industry MEPP, welfare, training and other benefits programs in accordance with the CBAs were $36.9 million for the year ended December 31, 2017 as compared to $16.7 million for the period from January 1, 2016 through July 19, 2016 (Predecessor) and $16.1 million for the period from July 20, 2016 through December 31, 2016 (Successor).
 
The following table presents the MEPPs in which the Company participates. Additionally, this table also lists the PPA Zone Status for MEPPS as the critical status (red zone-less than 65% funded), the endangered status (yellow-less than 80% funded) or neither critical or endangered status (green-greater than 80% funded). The zone status represents the most recent available information for the respective MEPP, which is 2016 for the 2017 year. These dates may not correspond with the Company’s calendar year contributions. The zone status is based on information received from the MEPPs and is certified by the MEPPs’ actuaries. The “FIP/RP Status” column indicates MEPPs for which a financial improvement plan (FIP) or rehabilitation plan (RP) has been adopted or implemented.
 
 
 
 
 
 
 
 
 
 
 
Contributions (in
 
Contributions
 
 
 
 
 
 
 
 
 
PPA Zone Status
 
 
 
thousands)
 
greater than
 
 
 
 
 
 
 
EIN/Pension
 
 
 
 
 
 
 
5% of total
 
Surcharge
 
Expiration date
 
Pension Fund
 
Plan Number
 
2017
 
2016
 
FIP/RP Status
 
2017
 
2016
 
contributions
 
Imposed
 
of CBA
 
Sheet Metal Workers Local Union No. 80 Pension Fund
 
38-6105633 / 001
 
Yellow
 
Yellow
 
Implemented
 
 
2,106
 
 
1,384
 
Yes
 
N/A
 
May-18
 
Plumbers Local No 98 Defined Benefit Pension Fund
 
38-3031916 / 001
 
Red
 
Red
 
Implemented
 
 
1,875
 
 
1,517
 
Yes
 
No
 
May-19
 
Pipefitters Local 636 Defined Benefit Pension Fund
 
38-3009873 / 001
 
Yellow
 
Yellow
 
Implemented
 
 
1,312
 
 
739
 
No
 
N/A
 
May-22
 
Heating, Piping and Refrigeration Pension Fund
 
52-1058013 / 001
 
Green
 
Green
 
N/A
 
 
1,296
 
 
767
 
No
 
N/A
 
Jul-19
 
Sheet Metal Workers' National Pension Fund
 
52-6112463/ 001
 
Yellow
 
Yellow
 
Implemented
 
 
1,227
 
 
1,166
 
No
 
N/A
 
Ranging from May-18 - Jun-20
 
Sheet Metal Workers' Pension Plan of Southern California, Arizona and Nevada
 
95-6052257 / 001
 
Yellow
 
Yellow
 
Implemented
 
 
1,167
 
 
1,383
 
No
 
N/A
 
Jun-20
 
Plumbers and Pipefitters National Pension Fund
 
52-6152779 / 001
 
Yellow
 
Yellow
 
Implemented
 
 
1,112
 
 
946
 
No
 
N/A
 
Ranging from May-17 - Aug-21
 
Plumbers & Pipefitters Local No 189 Pension Plan
 
31-0894807 / 001
 
Green
 
Green
 
N/A
 
 
628
 
 
700
 
Yes
 
N/A
 
May-19
 
Pipefitters Union Local No. 537 Pension Fund
 
51-6030859 / 001
 
Green
 
Green
 
N/A
 
 
607
 
 
778
 
No
 
N/A
 
Aug-21
 
Steamfitters Local Union No. 420 Pension Fund
 
23-2004424 / 001
 
Red
 
Red
 
Implemented
 
 
577
 
 
510
 
No
 
No
 
May-17
 
Sheet Metal Workers Local 98 Pension Fund
 
31-6171213 / 001
 
Yellow
 
Yellow
 
Implemented
 
 
526
 
 
550
 
Yes
 
N/A
 
May-18
 
Southern California Pipe Trades Retirement Fund
 
51-6108443 / 001
 
Green
 
Green
 
N/A
 
 
426
 
 
657
 
No
 
N/A
 
Jun-18
 
Plumbers & Pipefitters of Local Union No. 333 Pension Fund
 
38-3545518 / 005
 
Yellow
 
Yellow
 
Implemented
 
 
385
 
 
645
 
No
 
N/A
 
May-18
 
Plumbers Local Union No. 690 Pension Fund
 
23-6405018 / 001
 
Green
 
Green
 
N/A
 
 
272
 
 
44
 
No
 
N/A
 
Apr-19
 
Electrical Workers Local No. 26 Pension Trust Fund
 
52-6117919 / 001
 
Green
 
Green
 
N/A
 
 
242
 
 
170
 
No
 
N/A
 
May-18
 
Steamfitters Local #449 Pension Plan
 
25-6032401 / 001
 
Green
 
Green
 
N/A
 
 
200
 
 
168
 
No
 
N/A
 
May-18
 
Plumbers & Steamfitters Local 577 Pension Plan
 
31-6134953 / 001
 
Red
 
Red
 
Implemented
 
 
165
 
 
172
 
No
 
No
 
May-18
 
Airconditioning and Refrigeration Industry Retirement Trust Fund
 
95-6035386 / 001
 
Green
 
Green
 
N/A
 
 
118
 
 
99
 
No
 
N/A
 
Aug-19
 
Plumbers & Pipe Fitters Local 354 Pension Fund
 
25-6148991 / 001
 
N/A (1)
 
Yellow
 
N/A
 
 
100
 
 
107
 
No
 
N/A
 
May-20
 
National Electrical Benefit Fund
 
53-0181657 / 001
 
Green
 
Green
 
N/A
 
 
91
 
 
63
 
No
 
N/A
 
May-18
 
United Association Local Union No. 322 Pension Plan
 
21-6016638 / 001
 
Red
 
Red
 
Implemented
 
 
75
 
 
18
 
No
 
No
 
Apr-17
 
Plumbers and Steamfitters Local 486 Pension Fund
 
52-6124449 / 001
 
Green
 
Green
 
N/A
 
 
65
 
 
28
 
No
 
N/A
 
Dec-19
 
Plumbers Local 27 Pension Fund
 
25-6034928 / 001
 
Green
 
Green
 
N/A
 
 
58
 
 
74
 
No
 
N/A
 
May-18
 
Sheet Metal Workers Local 224 Pension Fund
 
31-6171353 / 001
 
Yellow
 
Yellow
 
Implemented
 
 
56
 
 
166
 
No
 
N/A
 
May-20
 
Laborers District Council Pension and Disability Trust Fund No. 2
 
52-0749130 / 001
 
Yellow
 
Yellow
 
Implemented
 
 
56
 
 
14
 
No
 
N/A
 
Aug-18
 
Sheet Metal Workers Local 7, Zone 1 Pension Plan
 
38-6234066 / 001
 
Red
 
Yellow
 
Implemented
 
 
53
 
 
58
 
No
 
No
 
Apr-20
 
Plumbers & Pipefitters Local 162 Pension Fund
 
31-6125999 / 001
 
Yellow
 
Yellow
 
Implemented
 
 
19
 
 
65
 
No
 
N/A
 
May-19
 
Maryland Electrical Industry Pension Plan
 
52-1057284 / 001
 
Green
 
Green
 
N/A
 
 
-
 
 
105
 
No
 
N/A
 
May-17
 
All other plans (11 as of December 31, 2017)
 
 
 
 
 
 
 
 
 
 
210
 
 
229
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Contributions
 
 
15,024
 
 
13,322
 
 
 
 
 
 
 
 
(1) Plan changed from a multi-employer pension plan to a profit sharing plan effective July 1, 2016.