Note 7 – Employee Benefit Plans

Net periodic benefit cost is as follows:



	Pension Benefits
	Three months ended September 30,						Nine months ended September 30,
	2013			2012			2013			2012
	(Millions)
Components of net periodic benefit cost:
Service cost	$	11		$	10		$	33		$	29
Interest cost	12			14			38			42
Expected return on plan assets	(15		)	(16		)	(45		)	(48		)
Amortization of prior service cost	1			—			1			—
Amortization of net actuarial loss	15			13			45			40
Net actuarial loss from settlements	—			2			—			4
Net periodic benefit cost	$	24		$	23		$	72		$	67



	Other Postretirement Benefits
	Three months ended September 30,						Nine months ended September 30,
	2013			2012			2013			2012
	(Millions)
Components of net periodic benefit cost:
Service cost	$	1		$	1		$	2		$	2
Interest cost	2			4			8			10
Expected return on plan assets	(3		)	(3		)	(7		)	(7		)
Amortization of prior service credit	(3		)	(2		)	(7		)	(5		)
Amortization of net actuarial loss	1			2			4			6
Amortization of regulatory liability	1			—			1			—
Net periodic benefit cost	$	(1	)	$	2		$	1		$	6

Amortization of prior service credit and net actuarial loss included in net periodic benefit cost for our other postretirement benefit plans associated with Transco and Northwest Pipeline are recorded to net regulatory liabilities instead of other comprehensive income (loss).

Amounts recognized in net regulatory liabilities include:



	Three months ended September 30,						Nine months ended September 30,
	2013			2012			2013			2012
	(Millions)
Amortization of prior service credit	$	(1	)	$	(2	)	$	(4	)	$	(4	)
Amortization of net actuarial loss	—			1			2			4

During the third quarter of 2013, our other postretirement benefit plan was amended, which resulted in a remeasurement of the plan’s funded status. The overall impact of the remeasurement was to reduce our liability reflecting the plan’s funded status by $121 million, with $59 million of the decrease directly attributable to the plan amendment and $62 million due to other actuarial gains through the remeasurement date. The decrease in our liability reflecting the plan’s funded status is offset by increases to accumulated other comprehensive income (loss) and net regulatory liabilities.

During the nine months ended September 30, 2013, we contributed $92 million to our pension plans and $6 million to our other postretirement benefit plans. We presently anticipate making additional contributions of approximately $2 million to our other postretirement benefit plans in the remainder of 2013.