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Defined Benefit Pension and Other Postretirement Plans
 6 Months Ended
Mar. 31, 2017
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,
 
2017
 
2016
 
2017
 
2016
Service cost
 
$
2,022

 
$
1,732

 
$
61

 
$
45

Interest cost
 
5,539

 
5,818

 
107

 
117

Expected return on assets
 
(7,496
)
 
(7,168
)
 
(164
)
 
(149
)
Amortization of:
 
 
 
 
 
 
 
 
Prior service cost (benefit)
 
82

 
87

 
(160
)
 
(160
)
Actuarial loss
 
3,706

 
2,393

 
29

 
25

Net benefit cost (income)
 
3,853

 
2,862

 
(127
)
 
(122
)
Change in associated regulatory liabilities
 
—

 
—

 
(123
)
 
876

Net benefit cost (income) after change in regulatory liabilities
 
$
3,853

 
$
2,862

 
$
(250
)
 
$
754

 
 
 
 
 
 
 
 
 
 
 
Pension Benefits
 
Other Postretirement Benefits
Six Months Ended March 31,
 
2017
 
2016
 
2017
 
2016
Service cost
 
$
4,045

 
$
3,464

 
$
122

 
$
91

Interest cost
 
11,078

 
11,635

 
215

 
233

Expected return on assets
 
(14,993
)
 
(14,335
)
 
(328
)
 
(298
)
Amortization of:
 
 
 
 
 
 
 
 
Prior service cost (benefit)
 
163

 
174

 
(320
)
 
(320
)
Actuarial loss
 
7,413

 
4,786

 
57

 
49

Net benefit cost (income)
 
7,706

 
5,724

 
(254
)
 
(245
)
Change in associated regulatory liabilities
 
—

 
—

 
(245
)
 
1,754

Net benefit cost (income) after change in regulatory liabilities
 
$
7,706

 
$
5,724

 
$
(499
)
 
$
1,509



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 Corporation Common Stock. It is our general policy to fund amounts for Pension Plan benefits equal to at least the minimum contribution required by ERISA. From time to time we may, at our discretion, contribute additional amounts. During the six months ended March 31, 2017 and 2016, the Company made contributions to the Pension Plan of $5,698 and $4,934, respectively. The Company expects to make additional discretionary cash contributions of approximately $5,500 to the Pension Plan during the remainder of Fiscal 2017.

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, 2017 and 2016.

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.