EMPLOYEE BENEFIT PLANS

The components of net periodic benefit cost for the Company’s two defined benefit non-contributory pension plans and certain non-qualified supplemental pension plans were as follows:



	Three months ended March 31,
(in thousands)	2014			2013
Components of net periodic benefit cost:
Service cost	$	3,003		$	3,602
Interest cost	2,575			2,718
Expected long-term return on assets	(2,848		)	(3,713		)
Actuarial loss amortization	2,256			3,690
Prior service cost amortization	118			122
Settlement charge	7,262			144
Net periodic expense	$	12,366		$	6,563

The Company anticipates required contributions of approximately $0.5 million during 2014 to the qualified pension plans. The Company expects sufficient funding credits, as established under Internal Revenue Code Section 430(f), exist to meet the required funding. Additionally, it is not anticipated that the funded status of the qualified pension plans will fall below statutory thresholds requiring accelerated funding or constraints on benefit levels or plan administration. The Company made a discretionary contribution of $3.0 million to the qualified pension plans in January 2014. During 2014, the Company may make discretionary contributions to the qualified pension plans depending on the amount and timing of employee retirements and market conditions. For the three months ended March 31, 2014, the Company made benefit payments aggregating $33,000 to retirees from the non-qualified supplemental retirement plans and expects to make additional benefit payments of approximately $0.2 million through the remainder of 2014. In the first quarter of 2014, the Company incurred a settlement charge of $17.1 million for the payment of lump sums from the qualified defined benefit pension plans, of which $6.9 million was expensed and $10.2 million was recognized as a pension asset in regulatory assets at Alagasco. Also in the first quarter of 2014, the Company incurred a settlement charge of $0.4 million for the payment of lump sums from the non-qualified supplemental retirement plans. In the first quarter of 2013, the Company incurred a settlement charge of $0.5 million for the payment of lump sums from the non-qualified supplemental retirement plans, of which $0.1 million was expensed and $0.4 million was recognized as a pension asset in regulatory assets at Alagasco.

The components of net periodic benefit cost for the Company’s postretirement benefit plans were as follows:



	Three months ended March 31,
(in thousands)	2014			2013
Components of net periodic benefit cost:
Service cost	$	170		$	444
Interest cost	754			869
Expected long-term return on assets	(1,412		)	(1,242		)
Actuarial gain amortization	(520		)	—
Transition obligation amortization	27			324
Net periodic (income) expense	$	(981	)	$	395

There are no required contributions to the postretirement benefit plans during 2014.