Defined Benefit Pension and Other Postretirement Plans

6 Months Ended

Mar. 31, 2016

Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract]

Defined Benefit Pension and Other Postretirement Plans

Note 8 — Defined Benefit Pension and Other Postretirement Plans

We sponsor a defined benefit pension plan for employees hired prior to January 1, 2009, of UGI, UGI Utilities, PNG, CPG and certain of UGI’s other domestic wholly owned subsidiaries (“Pension Plan”). Pension Plan benefits are based on years of service, age and employee compensation. We also provide postretirement health care benefits to certain retirees and postretirement life insurance benefits to nearly all active and retired employees.

Net periodic pension expense and other postretirement benefit costs include the following components:

	Pension Benefits						Other Postretirement Benefits
Three Months Ended March 31,	2016			2015			2016			2015
Service cost	$	1,732		$	1,740		$	45		$	49
Interest cost	5,818			5,628			117			118
Expected return on assets	(7,168		)	(7,225		)	(149		)	(153		)
Amortization of:
Prior service cost (benefit)	87			87			(160		)	(160		)
Actuarial loss	2,393			2,198			25			31
Net benefit cost (income)	2,862			2,428			(122		)	(115		)
Change in associated regulatory liabilities	—			—			876			938
Net benefit cost after change in regulatory liabilities	$	2,862		$	2,428		$	754		$	823
	Pension Benefits						Other Postretirement Benefits
Six Months Ended March 31,	2016			2015			2016			2015
Service cost	$	3,464		$	3,481		$	91		$	97
Interest cost	11,635			11,255			233			237
Expected return on assets	(14,335		)	(14,449		)	(298		)	(306		)
Amortization of:
Prior service cost (benefit)	174			174			(320		)	(320		)
Actuarial loss	4,786			4,396			49			63
Net benefit cost (income)	5,724			4,857			(245		)	(229		)
Change in associated regulatory liabilities	—			—			1,754			1,875
Net benefit cost after change in regulatory liabilities	$	5,724		$	4,857		$	1,509		$	1,646

Pension Plan assets are held in trust and consist principally of publicly traded, diversified equity and fixed income mutual funds and, to a much lesser extent, smallcap common stocks and UGI Common Stock. It is our general policy to fund amounts for Pension Plan benefits equal to at least the minimum contribution required by ERISA. During the six months ended March 31, 2016 and 2015, the Company made contributions to the Pension Plan of $4,934 and $5,566, respectively. The Company expects to make additional discretionary cash contributions of approximately $5,000 to the Pension Plan during the remainder of Fiscal 2016.

UGI Utilities has established a Voluntary Employees’ Beneficiary Association (“VEBA”) trust to pay retiree health care and life insurance benefits by depositing into the VEBA the annual amount of postretirement benefits costs, if any, determined under GAAP. The difference between such amount and the amounts included in UGI Gas’ and Electric Utility’s rates is deferred for future recovery from, or refund to, ratepayers. There were no required contributions to the VEBA during the six months ended March 31, 2016 and 2015.

We also participate in an unfunded and non-qualified defined benefit supplemental executive retirement plan. Net benefit costs associated with this plan for all periods presented were not material.