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## NOTE J — RETIREMENT PLANS 

EMCOR’s United Kingdom subsidiary has a defined benefit pension plan covering substantially all eligible employees. The benefits under the plan are based on wages and years of service with the subsidiary. EMCOR’s policy is to fund the minimum amount required by law. 

The change in benefit obligation and plan assets for the years ended December 31, 2001 and 2000 consisted of the following components (in thousands): 

<img src='content_image/77337.jpg'>

The assumptions used as of December 31, 2001, 2000 and 1999 in determining pension cost and liability shown above were as follows: 

<img src='content_image/77335.jpg'>

For measurement purposes, a 2.5% annual rate of increase in the per capita cost of covered pension benefits was assumed for 2001 and 2000. 

The components of net periodic pension benefit cost for the years ended December 31, 2001, 2000 and 1999 were as follows (in thousands): 

<img src='content_image/77336.jpg'>

EMCOR contributes to various union defined contribution pension funds based upon wages paid to union employees of EMCOR. Such contributions approximated $92.0 million, $88.9 million and $71.1 million for the years ended December 31, 2001, 2000 and 1999, respectively. 

EMCOR has a defined contribution retirement plan that covers its U.S. non-union eligible employees. Contributions to this plan are based on a percentage of the employee’s base compensation. The expense recognized for the years ended December 31, 2001, 2000 and 1999 for the defined contribution plan was $3.2 million, $2.9 million and $2.2 million, respectively. 

