(15) Retirement Plans:

The following tables provide the components of net periodic benefit cost:



	Pension Benefits
	For the three months ended				For the nine months ended
	September 30,				September 30,

	2014		2013		2014		2013
($ in thousands)
Components of net periodic pension benefit cost
Service cost	$	9,170	$	12,141	$	29,050	$	37,809
Interest cost on projected benefit obligation		18,997		18,827		58,645		56,587
Expected return on plan assets		(23,195)		(23,585)		(70,219)		(72,765)
Amortization of prior service cost /(credit)		11		2		33		6
Amortization of unrecognized loss		4,398		10,798		14,036		30,942
Net periodic pension benefit cost		9,381		18,183		31,545		52,579
Pension settlement costs		-		40,309		-		40,309
Total periodic pension benefit cost	$	9,381	$	58,492	$	31,545	$	92,888



	Postretirement Benefits
	Other Than Pensions (OPEB)
	For the three months ended				For the nine months ended
	September 30,				September 30,

	2014		2013		2014		2013
($ in thousands)
Components of net periodic postretirement benefit cost
Service cost	$	2,408	$	3,088	$	7,514	$	9,446
Interest cost on projected benefit obligation		5,470		4,181		15,046		13,061
Expected return on plan assets		(23)		(25)		(37)		(111)
Amortization of prior service cost/(credit)		(890)		(1,526)		(2,670)		(4,576)
Amortization of unrecognized loss		449		1,695		1,893		6,151
Net periodic postretirement benefit cost	$	7,414	$	7,413	$	21,746	$	23,971

During the first nine months of 2014 and 2013, we capitalized $11.3 million and $15.0 million, respectively, of pension and OPEB expense into the cost of our capital expenditures, as the costs relate to our engineering and plant construction activities. Based on current assumptions and plan asset values, we estimate that our 2014 pension and OPEB expenses will be approximately $65 million to $75 million, excluding amounts related to the recently acquired Connecticut operations and amounts capitalized into the cost of capital expenditures, as compared to $97.1 million in 2013, excluding the impact of pension settlement costs and amounts capitalized into the cost of capital expenditures. We made total cash contributions to our pension plan during the nine months ended September 30, 2014 of $70.5 million. An additional cash contribution of $12.7 million was made on October 15, 2014, for a total contribution of $83.2 million in 2014. Our 2014 total contributions include the impact of the extension of funding relief included in the Highway and Transportation Funding Act of 2014. The Company estimates that there are no further contributions required in 2014.

The Company’s pension plan assets have increased from $1,216.5 million at December 31, 2013 to $1,288.1 million at September 30, 2014, an increase of $71.6 million, or 6%. This increase is a result of positive investment returns of $91.7 million and cash contributions of $70.5 million, offset by benefit payments of $90.6 million during the first nine months of 2014.