Retirement benefits

Defined benefit pension and other postretirement benefit plans information. For the first nine months of 2018, the Company contributed $38 million ($37 million by the Utilities) to its pension and other postretirement benefit plans, compared to $50 million ($49 million by the Utilities) in the first nine months of 2017. The Company’s current estimate of contributions to its pension and other postretirement benefit plans in 2018 is $38 million ($37 million by the Utilities, $1 million by HEI and nil by ASB), compared to $67 million ($66 million by the Utilities, $1 million by HEI and nil by ASB) in 2017. In addition, the Company expects to pay directly $2 million ($1 million by the Utilities) of benefits in 2018, compared to $1 million ($0.5 million by the Utilities) paid in 2017.

The components of NPPC and NPBC for HEI consolidated and Hawaiian Electric consolidated were as follows:



	Three months ended September 30												Nine months ended September 30
	Pension benefits						Other benefits						Pension benefits						Other benefits
(in thousands)	2018			2017			2018			2017			2018			2017			2018			2017
HEI consolidated
Service cost	$	17,223		$	16,271		$	680		$	843		$	51,764		$	48,635		$	2,041		$	2,530
Interest cost	19,340			20,304			1,986			2,363			58,033			60,881			5,947			7,089
Expected return on plan assets	(27,237		)	(25,689		)	(3,224		)	(3,078		)	(81,715		)	(77,056		)	(9,683		)	(9,248		)
Amortization of net prior service gain	(11		)	(14		)	(451		)	(448		)	(32		)	(41		)	(1,354		)	(1,345		)
Amortization of net actuarial loss	7,527			6,638			25			283			22,556			19,858			71			848
Net periodic pension/benefit cost (return)	16,842			17,510			(984		)	(37		)	50,606			52,277			(2,978		)	(126		)
Impact of PUC D&Os	7,785			(4,534		)	953			346			17,621			(14,557		)	3,048			1,019
Net periodic pension/benefit cost (adjusted for impact of PUC D&Os)	$	24,627		$	12,976		$	(31	)	$	309		$	68,227		$	37,720		$	70		$	893
Hawaiian Electric consolidated
Service cost	$	16,840		$	15,764		$	676		$	839		$	50,520		$	47,294		$	2,028		$	2,515
Interest cost	17,824			18,659			1,907			2,279			53,471			55,974			5,721			6,837
Expected return on plan assets	(25,593		)	(23,973		)	(3,178		)	(3,037		)	(76,777		)	(71,919		)	(9,534		)	(9,110		)
Amortization of net prior service loss (gain)	2			2			(451		)	(451		)	6			6			(1,353		)	(1,353		)
Amortization of net actuarial loss	6,826			6,098			25			275			20,477			18,294			74			826
Net periodic pension/benefit cost (return)	15,899			16,550			(1,021		)	(95		)	47,697			49,649			(3,064		)	(285		)
Impact of PUC D&Os	7,785			(4,534		)	953			346			17,621			(14,557		)	3,048			1,019
Net periodic pension/benefit cost (adjusted for impact of PUC D&Os)	$	23,684		$	12,016		$	(68	)	$	251		$	65,318		$	35,092		$	(16	)	$	734

HEI consolidated recorded retirement benefits expense of $43 million ($40 million by the Utilities) and $25 million ($22 million by the Utilities) in the first nine months of 2018 and 2017, respectively, and charged the remaining net periodic benefit cost primarily to electric utility plant.

The Utilities have implemented pension and OPEB tracking mechanisms under which all of their retirement benefit expenses (except for executive life and nonqualified pension plan expenses) determined in accordance with GAAP are recovered over time. Under the tracking mechanisms, these retirement benefit costs that are over/under amounts allowed in rates are charged/credited to a regulatory asset/liability. The regulatory asset/liability for each utility will be amortized over 5 years beginning with the issuance of the PUC’s D&O in the respective utility’s next rate case.

Defined contribution plans information. For the first nine months of 2018 and 2017, the Company’s expenses for its defined contribution pension plans under the Hawaiian Electric Industries Retirement Savings Plan (HEIRSP) and the ASB 401(k) Plan were $4.8 million and $5.1 million, respectively, and cash contributions were $5.9 million and $5.0 million, respectively. For the first nine months of 2018 and 2017, the Utilities’ expenses for its defined contribution pension plan under the HEIRSP were $1.7 million and $1.4 million, respectively, and cash contributions were $1.7 million and $1.4 million, respectively.