Pension Plan and Other Postretirement Benefits

9 Months Ended

Sep. 30, 2014

Pension Plan and Other Postretirement Benefits

Pension Plan and Other Postretirement Benefits

Note 6. Pension Plan and Other Postretirement Benefits

The Company provides a qualified, defined-benefit, non-contributory pension plan for substantially all employees. The Company makes annual contributions to fund the amounts accrued for the qualified pension plan. The Company also maintains an unfunded, non-qualified, supplemental executive retirement plan. The costs of the plans are charged to expense or are capitalized in utility plant as appropriate.

The Company offers medical, dental, vision, and life insurance benefits for retirees and their spouses and dependents. Participants are required to pay a premium, which offsets a portion of the cost.

Cash payments by the Company related to pension plans and other postretirement benefit plans was $14.0 million and $2.4 million, respectively, for the nine months ended September 30, 2014 and was $23.4 million to pension plans and $4.7 million to other postretirement benefit plans during the nine months ended September 30, 2013. The 2014 estimated cash contribution to the pension plans is $26.8 million and to the other postretirement benefit plans is $9.6 million.

The following table lists components of net periodic benefit costs for the pension plans and other postretirement benefits. The data listed under “pension plan” includes the qualified pension plan and the non-qualified supplemental executive retirement plan. The data listed under “other benefits” is for all other postretirement benefits.

	Three Months Ended September 30
	Pension Plan						Other Benefits
	2014			2013			2014			2013
Service cost	$	3,539		$	4,019		$	1,398		$	1,636
Interest cost	4,737			4,140			1,321			1,121
Expected return on plan assets	(4,091		)	(3,559		)	(832		)	(600		)
Recognized net initial APBO (1)	N/A			N/A			—			3
Amortization of prior service cost	1,527			1,542			11			21
Recognized net actuarial loss	1,002			2,404			656			961
Net periodic benefit cost	$	6,714		$	8,546		$	2,554		$	3,142

	Nine months Ended September 30
	Pension Plan						Other Benefits
	2014			2013			2014			2013
Service cost	$	11,973		$	13,335		$	4,637		$	5,025
Interest cost	14,190			12,266			3,995			3,339
Expected return on plan assets	(12,449		)	(10,689		)	(2,339		)	(1,796		)
Recognized net initial APBO (1)	N/A			N/A			—			7
Amortization of prior service cost	4,547			4,624			33			61
Recognized net actuarial loss	3,008			6,852			2,206			2,794
Net periodic benefit cost	$	21,269		$	26,388		$	8,532		$	9,430

(1) APBO - Accumulated postretirement benefit obligation