Retirement and Other Employee Benefits

9 Months Ended

Sep. 30, 2015

Retirement and Other Employee Benefits

Retirement and Other Employee Benefits

Note 8 — Retirement and Other Employee Benefits

Net periodic benefit cost, some of which is capitalized as a component of labor cost and some of which is deferred as a regulatory asset, is comprised of the following components and is shown for our noncontributory defined benefit pension plan, our supplemental retirement program (SERP) and other postretirement benefits (OPEB) (in thousands):

	Three months ended September 30,
	Pension Benefits						SERP						OPEB
	2015			2014			2015			2014			2015			2014
Service cost	$	1,816		$	1,596		$	33		$	57		$	945		$	737
Interest cost	2,702			2,648			102			117			1,175			1,109
Expected return on plan assets	(3,396		)	(3,185		)	—			—			(1,272		)	(1,207		)
Amortization of prior service cost (1)	(157		)	105			(10		)	(2		)	(253		)	(253		)
Amortization of net actuarial loss (1)	2,835			1,660			168			168			699			268
Net periodic benefit cost	$	3,800		$	2,824		$	293		$	340		$	1,294		$	654

	Nine months ended September 30,
	Pension Benefits						SERP						OPEB
	2015			2014			2015			2014			2015			2014
Service cost	$	5,581		$	4,850		$	119		$	115		$	2,785		$	1,950
Interest cost	7,708			8,114			286			290			3,502			3,270
Expected return on plan assets	(10,175		)	(9,829		)	—			—			(3,897		)	(3,600		)
Amortization of prior service cost (1)	(472		)	314			(32		)	(6		)	(758		)	(758		)
Amortization of net actuarial loss (1)	7,525			4,958			448			378			2,061			725
Net periodic benefit cost	$	10,167		$	8,407		$	821		$	777		$	3,693		$	1,587

	Twelve months ended September 30,
	Pension Benefits						SERP						OPEB
	2015			2014			2015			2014			2015			2014
Service cost	$	7,198		$	6,713		$	157		$	148		$	3,435		$	2,686
Interest cost	10,413			10,631			383			370			4,592			4,226
Expected return on plan assets	(13,452		)	(12,936		)	—			—			(5,097		)	(4,689		)
Amortization of prior service cost (1)	(368		)	447			(34		)	(8		)	(1,011		)	(1,011		)
Amortization of net actuarial loss (1)	9,178			7,569			574			520			2,303			1,291
Net periodic benefit cost	$	12,969		$	12,424		$	1,080		$	1,030		$	4,222		$	2,503

(1) Amounts are amortized from our regulatory asset originally recorded upon recognizing our net pension liability on the balance sheet.

We provide certain healthcare and life insurance benefits to eligible retired employees, their dependents and survivors through trusts we have established. Participants generally become eligible for retiree healthcare benefits after reaching age 55 with 5 years of service. For employees hired after June 1, 2014, retiree healthcare benefits received upon retirement will no longer be subsidized.

In accordance with our regulatory agreements, our pension funding policy is to make contributions that are at least equal to the greater of either the minimum funding requirements of ERISA or the accrued cost of the plan. We made contributions of $21.4 million during the nine months ended September 30, 2015. No additional contributions are expected for the year. Our OPEB funding policy is to contribute annually an amount at least equal to the actuarial cost of postretirement benefits. We expect to be required to fund approximately $5.0 million during 2015, of which we have made contributions of approximately $3.7 million as of September 30, 2015. The actual minimum pension and OPEB funding requirements will be determined based on the results of the actuarial valuations.