Employee Benefit Plans

Net periodic benefit costs for our pension and post-retirement benefits plans for the three and nine months ended September 30, 2018 and 2017 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 September 30,	2018			2017			2018			2017			2018		2017		2018			2017			2018		2017
(in thousands)
Interest cost	$	94		$	103		$	570		$	623		$	21	$	22	$	10		$	11		$	12	$	13
Expected return on plan assets	(131		)	(127		)	(770		)	(699		)	—		—		—			—			—		—
Amortization of prior service credit	—			—			—			—			—		—		(19		)	(19		)	—		—
Amortization of net loss	82			107			86			131			25		22		15			17			—		—
Net periodic cost (benefit) ⁽¹⁾	45			83			(114		)	55			46		44		6			9			12		13
Amortization of pre-merger regulatory asset	—			—			191			191			—		—		—			—			2		2
Total periodic cost	$	45		$	83		$	77		$	246		$	46	$	44	$	6		$	9		$	14	$	15



	Chesapeake Pension Plan						FPU Pension Plan						Chesapeake SERP				Chesapeake Postretirement Plan						FPU Medical Plan
For the Nine Months Ended September 30,	2018			2017			2018			2017			2018		2017		2018			2017			2018		2017
(in thousands)
Interest cost	$	288		$	309		$	1,754		$	1,870		$	63	$	66	$	29		$	31		$	38	$	38
Expected return on plan assets	(406		)	(381		)	(2,318		)	(2,098		)	—		—		—			—			—		—
Amortization of prior service credit	—			—			—			—			—		—		(58		)	(58		)	—		—
Amortization of net loss	258			319			302			392			75		65		45			50			—		—
Net periodic cost (benefit) ⁽¹⁾	140			247			(262		)	164			138		131		16			23			38		38
Amortization of pre-merger regulatory asset	—			—			571			571			—		—		—			—			6		6
Total periodic cost	$	140		$	247		$	309		$	735		$	138	$	131	$	16		$	23		$	44	$	44

⁽¹⁾As a result of our adoption of ASU 2017-07 on January 1, 2018, the "other than service" cost components of net periodic costs have been recorded or reclassified to other income (expense), net in the condensed consolidated statements of income.

We expect to record pension and postretirement benefit costs of approximately $856,000 for 2018. 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 $749,000 and approximately $1.3 million at September 30, 2018 and December 31, 2017, 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 September 30, 2018 and 2017:



For the Three Months Ended September 30, 2018	Chesapeake Pension Plan		FPU Pension Plan		Chesapeake SERP		Chesapeake Postretirement Plan			FPU Medical Plan		Total
(in thousands)
Prior service credit	$	—	$	—	$	—	$	(19	)	$	—	$	(19	)
Net loss	82		86		25		15			—		208
Total recognized in net periodic benefit cost	82		86		25		(4		)	—		189
Recognized from accumulated other comprehensive loss ⁽¹⁾	82		16		25		(4		)	—		119
Recognized from regulatory asset	—		70		—		—			—		70
Total	$	82	$	86	$	25	$	(4	)	$	—	$	189



For the Three Months Ended September 30, 2017	Chesapeake Pension Plan		FPU Pension Plan		Chesapeake SERP		Chesapeake Postretirement Plan			FPU Medical Plan		Total
(in thousands)
Prior service credit	$	—	$	—	$	—	$	(19	)	$	—	$	(19	)
Net loss	107		131		22		17			—		277
Total recognized in net periodic benefit cost	107		131		22		(2		)	—		258
Recognized from accumulated other comprehensive loss ⁽¹⁾	107		25		22		(2		)	—		152
Recognized from regulatory asset	—		106		—		—			—		106
Total	$	107	$	131	$	22	$	(2	)	$	—	$	258



For the Nine Months Ended September 30, 2018	Chesapeake Pension Plan		FPU Pension Plan		Chesapeake SERP		Chesapeake Postretirement Plan			FPU Medical Plan		Total
(in thousands)
Prior service credit	$	—	$	—	$	—	$	(58	)	$	—	$	(58	)
Net loss	258		302		75		45			—		680
Total recognized in net periodic benefit cost	258		302		75		(13		)	—		622
Recognized from accumulated other comprehensive loss ⁽¹⁾	258		57		75		(13		)	—		377
Recognized from regulatory asset	—		245		—		—			—		245
Total	$	258	$	302	$	75	$	(13	)	$	—	$	622



For the Nine Months Ended September 30, 2017	Chesapeake Pension Plan		FPU Pension Plan		Chesapeake SERP		Chesapeake Postretirement Plan			FPU Medical Plan		Total
(in thousands)
Prior service credit	$	—	$	—	$	—	$	(58	)	$	—	$	(58	)
Net loss	319		392		65		50			—		826
Total recognized in net periodic benefit cost	319		392		65		(8		)	—		768
Recognized from accumulated other comprehensive loss ⁽¹⁾	319		75		65		(8		)	—		451
Recognized from regulatory asset	—		317		—		—			—		317
Total	$	319	$	392	$	65	$	(8	)	$	—	$	768

⁽¹⁾See Note 8, Stockholder's Equity.

During the three and nine months ended September 30, 2018, we contributed approximately $235,000 and $433,000, respectively, to the Chesapeake Pension Plan and approximately $123,000 and $971,000, respectively, to the FPU Pension Plan. We expect to contribute a total of approximately $359,000 and approximately $1.5 million to the Chesapeake Pension Plan and FPU Pension Plan, respectively, during 2018, 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 nine months ended September 30, 2018, were approximately $38,000 and $113,000, respectively. We expect to pay total cash benefits of approximately $151,000 under the Chesapeake SERP in 2018. Cash benefits paid under the Chesapeake Postretirement Plan, primarily for medical claims for nine months ended September 30, 2018, were approximately $15,000 and no cash benefits were paid for medical claims during the third quarter of 2018. We estimate that approximately $97,000 will be paid for such benefits under the Chesapeake Postretirement Plan in 2018. Cash benefits paid under the FPU Medical Plan, primarily for medical claims for the three and nine months ended September 30, 2018, were approximately $9,000 and $33,000, respectively. We estimate that approximately $88,000 will be paid for such benefits under the FPU Medical Plan in 2018.