PENSION AND OTHER POSTRETIREMENT BENEFITS

The following table (in thousands) presents information for the nine months ended September 30, 2015, relating to the Pension Plans:



Net unfunded status of plans:
Net unfunded status at December 31, 2014, before tax adjustments	$	(91,182	)
Net benefit cost components reflected in net funded status during first quarter:
Service cost	(2,079		)
Interest cost	(7,408		)
Expected return on assets	11,206
Employer contributions during quarter	25,000
Net unfunded status at March 31, 2015, before tax adjustments	$	(64,463	)
Net benefit cost components reflected in net funded status during second quarter:
Service cost	(2,078		)
Interest cost	(7,408		)
Expected return on assets	11,206
Net unfunded status at June 30, 2015, before tax adjustments	$	(62,743	)
Net benefit cost components reflected in net funded status during third quarter:
Service cost	(2,079		)
Interest cost	(7,411		)
Expected return on assets	11,204
Actuarial valuation adjustment	108
Employer contributions during quarter	146
Net unfunded status at September 30, 2015, before tax adjustments	$	(60,775	)

Regulatory assets related to pensions⁽¹⁾:
Regulatory assets at December 31, 2014, before tax adjustments	$	236,891
Amount reclassified through net benefit cost:
Amortization of prior service cost	(1,216		)
Amortization of net actuarial loss	(3,475		)
Regulatory assets at March 31, 2015, before tax adjustments	$	232,200
Amount reclassified through net benefit cost:
Amortization of prior service cost	(1,217		)
Amortization of net actuarial loss	(3,475		)
Regulatory assets at June 30, 2015, before tax adjustments	$	227,508
Amount reclassified through net benefit cost:
Amortization of prior service cost	(1,217		)
Amortization of net actuarial loss	(3,470		)
ASC 715 settlement accounting re-actuarial valuation - supplemental plan⁽²⁾	(206		)
Actuarial valuation adjustment	(108		)
Regulatory assets at September 30, 2015, before tax adjustments	$	222,507

(1)

Amounts that would otherwise be charged/credited to Accumulated Other Comprehensive Income or Loss upon application of ASC 715, “Compensation – Retirement Benefits,” are recorded as a regulatory asset or liability because IPL has historically recovered and currently recovers pension and other postretirement benefit expenses in rates. These are unrecognized amounts yet to be recognized as components of net periodic benefit costs.


(2)	The $0.2 million settlement loss was the result of a lump sum distribution paid out of the Supplemental Retirement Plan of IPL for the nine months ended September 30, 2015.

Pension Expense

The following table presents net periodic benefit cost information relating to the Pension Plans combined:



	For the Three Months Ended,						For the Nine Months Ended,
	September 30,						September 30,
	2015			2014			2015			2014
	(In Thousands)
Components of net periodic benefit cost:
Service cost	$	2,079		$	1,808		$	6,236		$	5,423
Interest cost	7,411			7,788			22,227			23,365
Expected return on plan assets	(11,204		)	(10,474		)	(33,616		)	(31,420		)
Amortization of prior service cost	1,217			1,214			3,650			3,640
Amortization of actuarial loss	3,470			2,428			10,420			7,283
ASC 715 settlement accounting re-actuarial valuation - supplemental plan	206			—			206			—
Net periodic benefit cost	$	3,179		$	2,764		$	9,123		$	8,291

In addition, IPL provides postretirement health care benefits to certain active or retired employees and the spouses of certain active or retired employees. These postretirement health care benefits and the related unfunded obligation were $5.9 million and $5.4 million at September 30, 2015 and December 31, 2014, respectively. The related expense was not material to the Financial Statements in the periods covered by this report.