Retirement benefits

3 Months Ended

Mar. 31, 2020

Defined benefit pension and other postretirement benefit plans information. For the first three months of 2020, the Company contributed $17 million ($17 million by the Utilities) to its pension and other postretirement benefit plans, compared to $8 million ($8 million by the Utilities) in the first three months of 2019. The Company’s current estimate of total contributions to its pension and other postretirement benefit plans in 2020 is $69 million ($68 million by the Utilities, $1 million by HEI and nil by ASB), compared to $49 million ($48 million by the Utilities, $1 million by HEI and nil by ASB) in 2019. In addition, the Company expects to pay directly $3 million ($1 million by the Utilities) of benefits in 2020, compared to $2 million ($1 million by the Utilities) paid in 2019.

The components of net periodic pension costs (NPPC) and net periodic benefit costs (NPBC) for HEI consolidated and Hawaiian Electric consolidated were as follows:


	Three months ended March 31
	Pension benefits						Other benefits
(in thousands)	2020		2019		2020		2019
HEI consolidated
Service cost	$	18,363	$	15,382	$	631	$	541
Interest cost	20,163		21,033		1,855		1,997
Expected return on plan assets	(28,466)		(27,998)		(3,038)		(3,086)

Amortization of net prior period (gain)/cost	3		(11)		(440)		(452)
Amortization of net actuarial (gains)/losses	8,057		3,839		50		(3)
Net periodic pension/benefit cost (return)	18,120		12,245		(942)		(1,003)
Impact of PUC D&Os	6,262		12,279		777		811
Net periodic pension/benefit cost (adjusted for impact of PUC D&Os)	$	24,382	$	24,524	$	(165)	$	(192)
Hawaiian Electric consolidated
Service cost	$	17,891	$	15,001	$	626	$	537
Interest cost	18,715		19,414		1,782		1,917
Expected return on plan assets	(26,855)		(26,164)		(2,990)		(3,035)

Amortization of net prior period (gain)/cost	2		2		(440)		(451)
Amortization of net actuarial losses	7,368		3,576		51		—
Net periodic pension/benefit cost (return)	17,121		11,829		(971)		(1,032)
Impact of PUC D&Os	6,262		12,279		777		811
Net periodic pension/benefit cost (adjusted for impact of PUC D&Os)	$	23,383	$	24,108	$	(194)	$	(221)

HEI consolidated recorded retirement benefits expense of $15 million ($14 million by the Utilities) in each of the first three months of 2020 and 2019 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, any actual costs determined in accordance with GAAP that are over/under amounts allowed in rates are charged/credited to a regulatory asset/liability. The regulatory asset/liability for each utility will then be amortized over 5 years beginning with the respective utility’s next rate case.

Defined contribution plans information. For the first three months of 2020 and 2019, the Company’s expenses for its defined contribution plans under the Hawaiian Electric Industries Retirement Savings Plan (HEIRSP) and the ASB 401(k) Plan were $1.8 million and $1.9 million, respectively, and cash contributions were $3.2 million and $3.7 million, respectively. For each of the first three months of 2020 and 2019, the Utilities’ expenses for its defined contribution plan under the HEIRSP were $0.7 million and cash contributions were $0.7 million.