EMPLOYEE BENEFIT PLANS (Tables)

6 Months Ended

Mar. 31, 2020

Summary of Changes in Funded Status of Plans and Liabilities Recognized

The following summarizes the changes in the funded status of the plan and the related liabilities recognized on the Consolidated Balance Sheets:



	OPEB
(Thousands)	March 31, 2020			September 30, 2019
Change in Benefit Obligation
Benefit obligation at beginning of period	$	260,003		$	196,785
Service cost	1,354			4,404
Interest cost	2,004			8,324
Plan participants’ contributions ⁽¹⁾	58			210
Actuarial loss (gain)	(44,017		)	54,700
Benefits paid, net of retiree subsidies received	(2,342		)	(4,420		)
Benefit obligation at end of period	$	217,060		$	260,003
Change in plan assets
Fair value of plan assets at beginning of period	$	83,925		$	77,980
Actual return on plan assets	4,676			2,499
Employer contributions	2,106			7,926
Benefits paid, net of plan participants’ contributions ⁽¹⁾	(2,284		)	(4,479		)
Fair value of plan assets at end of period	$	88,423		$	83,926
Funded status	$	(128,637	)	$	(176,077	)
Amounts recognized on Consolidated Balance Sheets
Postemployment employee (liability)
Current	$	(800	)	$	(800	)
Noncurrent	(127,837		)	(175,277		)
Total	$	(128,637	)	$	(176,077	)

(1)

Prior to July 1, 1998, employees were eligible to elect an additional participant contribution to enhance their benefits and contributions made during the periods were insignificant.

Summary of Regulatory Assets and Accumulated Other Comprehensive Income

The following table summarizes the amounts recognized in regulatory assets and accumulated other comprehensive income:



	Regulatory Assets			Accumulated Other Comprehensive Income (Loss)
	OPEB			OPEB
Balance at September 30, 2018	$	68,685		$	7,659
Amounts arising during the period:
Net actuarial loss	48,452			9,264
Amounts amortized to net periodic costs:
Net actuarial (loss)	(5,820		)	(648		)
Prior service credit	312			53
Balance at September 30, 2019	$	111,629		$	16,328
Amounts arising during the period:
Net actuarial (gain)	(40,074		)	(7,059		)
Amounts amortized to net periodic costs:
Net actuarial (loss)	(2,441		)	(350		)
Prior service credit	45			4
Balance at March 31, 2020	$	69,159		$	8,923

The amounts in regulatory assets and accumulated other comprehensive income not yet recognized as components of net periodic benefit cost were as follows:



	Regulatory Assets						Accumulated Other Comprehensive Income (Loss)
	OPEB						OPEB
(Thousands)	March 31, 2020			September 30, 2019			March 31, 2020			September 30, 2019
Net actuarial loss	$	69,594		$	112,109		$	8,958		$	16,367
Prior service cost (credit)	(435		)	(480		)	(35		)	(39		)
Total	$	69,159		$	111,629		$	8,923		$	16,328

Components of Net Periodic Cost

The components of the net periodic cost for pension benefits, including the Company's Pension Equalization Plan, and OPEB costs (principally health care and life insurance) for employees and covered dependents were as follows:



	Pension												OPEB
	Three Months Ended						Six Months Ended						Three Months Ended						Six Months Ended
	March 31,						March 31,						March 31,						March 31,
(Thousands)	2020			2019			2020			2019			2020			2019			2020			2019
Service cost	$	2,055		$	1,846		$	4,111		$	3,691		$	1,072		$	1,101		$	2,427		$	2,202
Interest cost	2,646			3,043			5,293			6,086			1,509			2,081			3,513			4,162
Expected return on plan assets	(5,232		)	(4,764		)	(10,289		)	(9,527		)	(1,695		)	(1,379		)	(3,255		)	(2,758		)
Recognized actuarial loss	2,466			1,441			5,212			2,882			930			1,616			3,721			3,233
Prior service cost amortization	26			26			51			51			(50		)	(91		)	(99		)	(182		)
Net periodic benefit cost	$	1,961		$	1,592		$	4,378		$	3,183		$	1,766		$	3,328		$	6,307		$	6,657

Schedule of Weighted Average Assumptions Used

The weighted average assumptions used to determine the Company’s obligations are as follows:



	OPEB
	March 31, 2020		September 30, 2019
Obligations:
Discount rate	3.50/3.46%	⁽¹⁾	3.48/3.44%	⁽¹⁾
Compensation increase	3.25/3.50%	⁽¹⁾	3.00/3.50%	⁽¹⁾

(1)

Percentages for represented and nonrepresented plans, respectively.