Employee Benefit Plans

Net periodic benefit costs for our pension and post-retirement benefits plans for the three and six months ended June 30, 2017 and 2016 are set forth in the following tables:



	Chesapeake Pension Plan						FPU Pension Plan						Chesapeake SERP				Chesapeake Postretirement Plan						FPU Medical Plan
For the Three Months Ended June 30,	2017			2016			2017			2016			2017		2016		2017			2016			2017		2016
(in thousands)
Interest cost	$	103		$	105		$	624		$	630		$	22	$	23	$	11		$	11		$	13	$	14
Expected return on plan assets	(127		)	(131		)	(700		)	(701		)	—		—		—			—			—		—
Amortization of prior service credit	—			—			—			—			—		—		(20		)	(20		)	—		—
Amortization of net loss	106			103			131			128			22		22		17			17			—		—
Net periodic cost (benefit)	82			77			55			57			44		45		8			8			13		14
Amortization of pre-merger regulatory asset	—			—			191			191			—		—		—			—			2		2
Total periodic cost	$	82		$	77		$	246		$	248		$	44	$	45	$	8		$	8		$	15	$	16



	Chesapeake Pension Plan						FPU Pension Plan						Chesapeake SERP				Chesapeake Postretirement Plan						FPU Medical Plan
For the Six Months Ended June 30,	2017			2016			2017			2016			2017		2016		2017			2016			2017		2016
(in thousands)
Interest cost	206			$	210		1,247			$	1,259		$	44	$	46	$	21		$	21		$	26	$	28
Expected return on plan assets	(254		)	(261		)	(1,399		)	(1,402		)	—		—		—			—			—		—
Amortization of prior service credit	—			—			—			—			—		—		(39		)	(40		)	—		—
Amortization of net loss	213			206			262			257			44		44		32			34			—		—
Net periodic cost (benefit)	165			155			110			114			88		90		14			15			26		28
Amortization of pre-merger regulatory asset	—			—			381			381			—		—		—			—			4		4
Total periodic cost	$	165		$	155		$	491		$	495		$	88	$	90	$	14		$	15		$	30	$	32

We expect to record pension and postretirement benefit costs of approximately $1.6 million for 2017. Included in these costs is approximately $769,000 related to continued amortization of the FPU pension regulatory asset, which represents the portion attributable to FPU’s regulated energy operations for the changes in funded status that occurred, but were not recognized, as part of net periodic benefit costs prior to the FPU merger in 2009. This was deferred as a regulatory asset by FPU prior to the merger, to be recovered through rates pursuant to a previous order by the Florida PSC. The unamortized balance of this regulatory asset was approximately $1.7 million and approximately $2.1 million at June 30, 2017 and December 31, 2016, respectively.

Pursuant to a Florida PSC order, FPU continues to record as a regulatory asset a portion of the unrecognized pension and postretirement benefit costs related to its regulated operations after the FPU merger. The portion of the unrecognized pension and postretirement benefit costs related to FPU’s unregulated operations and Chesapeake Utilities' operations is recorded to accumulated other comprehensive loss.

The following tables present the amounts included in the regulatory asset and accumulated other comprehensive loss that were recognized as components of net periodic benefit cost during the three months ended June 30, 2017 and 2016:



For the Three Months Ended June 30, 2017	Chesapeake Pension Plan		FPU Pension Plan		Chesapeake SERP		Chesapeake Postretirement Plan			FPU Medical Plan		Total
(in thousands)
Prior service credit	$	—	$	—	$	—	$	(20	)	$	—	$	(20	)
Net loss	106		131		22		17			—		276
Total recognized in net periodic benefit cost	106		131		22		(3		)	—		256
Recognized from accumulated other comprehensive loss ⁽¹⁾	106		25		22		(3		)	—		150
Recognized from regulatory asset	—		106		—		—			—		106
Total	$	106	$	131	$	22	$	(3	)	$	—	$	256



For the Three Months Ended June 30, 2016	Chesapeake Pension Plan		FPU Pension Plan		Chesapeake SERP		Chesapeake Postretirement Plan			FPU Medical Plan		Total
(in thousands)
Prior service credit	$	—	$	—	$	—	$	(20	)	$	—	$	(20	)
Net loss	103		128		22		17			—		270
Total recognized in net periodic benefit cost	103		128		22		(3		)	—		250
Recognized from accumulated other comprehensive loss ⁽¹⁾	103		24		22		(3		)	—		146
Recognized from regulatory asset	—		104		—		—			—		104
Total	$	103	$	128	$	22	$	(3	)	$	—	$	250



For the Six Months Ended June 30, 2017	Chesapeake Pension Plan		FPU Pension Plan		Chesapeake SERP		Chesapeake Postretirement Plan			FPU Medical Plan		Total
(in thousands)
Prior service credit	$	—	$	—	$	—	$	(39	)	$	—	$	(39	)
Net loss	213		262		44		32			—		551
Total recognized in net periodic benefit cost	213		262		44		(7		)	—		512
Recognized from accumulated other comprehensive loss ⁽¹⁾	213		50		44		(7		)	—		300
Recognized from regulatory asset	—		212		—		—			—		212
Total	$	213	$	262	$	44	$	(7	)	$	—	$	512



For the Six Months Ended June 30, 2016	Chesapeake Pension Plan		FPU Pension Plan		Chesapeake SERP		Chesapeake Postretirement Plan			FPU Medical Plan		Total
(in thousands)
Prior service credit	$	—	$	—	$	—	$	(40	)	$	—	$	(40	)
Net loss	206		257		44		34			—		541
Total recognized in net periodic benefit cost	206		257		44		(6		)	—		501
Recognized from accumulated other comprehensive loss ⁽¹⁾	206		49		44		(6		)	—		293
Recognized from regulatory asset	—		208		—		—			—		208
Total	$	206	$	257	$	44	$	(6	)	$	—	$	501

⁽¹⁾See Note 7, Stockholder's Equity.

During the three and six months ended June 30, 2017, we contributed approximately $119,000 and $167,000, respectively, to the Chesapeake Pension Plan and approximately $1.2 million and $1.5 million, respectively, to the FPU Pension Plan. We expect to contribute a total of approximately $746,000 and approximately $3.0 million to the Chesapeake Pension Plan and FPU Pension Plan, respectively, during 2017, which represents the minimum annual contribution payments required.

The Chesapeake SERP, the Chesapeake Postretirement Plan and the FPU Medical Plan are unfunded and are expected to be paid out of our general funds. Cash benefits paid under the Chesapeake SERP for the three and six months ended June 30, 2017, were approximately $38,000 and approximately $76,000, respectively. We expect to pay total cash benefits of approximately $151,000 under the Chesapeake Pension SERP in 2017. Cash benefits paid under the Chesapeake Postretirement Plan, primarily for medical claims for the three and six months ended June 30, 2017, were approximately $17,000 and approximately $65,000, respectively. We estimate that approximately $83,000 will be paid for such benefits under the Chesapeake Postretirement Plan in 2017. Cash benefits paid under the FPU Medical Plan, primarily for medical claims for the three and six months ended June 30, 2017, were approximately $18,000 and approximately $36,000, respectively. We estimate that approximately $129,000 will be paid for such benefits under the FPU Medical Plan in 2017.