7. PENSION AND OTHER POSTRETIREMENT BENEFIT COSTS

The following table provides the components of net periodic benefit cost for our pension and other postretirement benefit plans:



	Three Months Ended September 30,												Nine Months Ended September 30,
	Pension Benefits						Other Postretirement Benefits						Pension Benefits						Other Postretirement Benefits
In thousands	2016			2015			2016			2015			2016			2015			2016			2015
Service cost	$	1,978		$	2,308		$	119		$	145		$	5,866		$	6,926		$	361		$	435
Interest cost	4,607			4,597			301			291			13,755			13,787			901			874
Expected return on plan assets	(5,017		)	(5,174		)	—			—			(15,051		)	(15,522		)	—			—
Amortization of net actuarial loss	3,555			4,561			192			125			10,559			13,683			575			376
Amortization of prior service costs	57			57			(117		)	50			173			173			(351		)	148
Settlement expense⁽¹⁾	193			—			—			—			193			—			—			—
Net periodic benefit cost	5,373			6,349			495			611			15,495			19,047			1,486			1,833
Amount allocated to construction	(1,556		)	(2,061		)	(163		)	(218		)	(4,678		)	(5,765		)	(491		)	(607		)
Amount deferred to regulatory balancing account⁽²⁾	(1,542		)	(2,171		)	—			—			(4,762		)	(6,511		)	—			—
Net amount charged to expense	$	2,275		$	2,117		$	332		$	393		$	6,055		$	6,771		$	995		$	1,226


⁽¹⁾	During the three months ended September 30, 2016, a participant within the Company's Supplemental Executive Retirement Plan elected to have their benefit paid out in a one-time lump-sum cash payment. Accordingly, this transaction qualified for settlement accounting and a pro rata portion of the associated loss in Accumulated Other Comprehensive Loss was immediately recognized in earnings.

⁽²⁾

The deferral of defined benefit pension expenses above or below the amount set in rates was approved by the OPUC, with recovery of these deferred amounts through the implementation of a balancing account. The balancing account includes the expectation of higher net periodic benefit costs than costs recovered in rates in the near-term with lower net periodic benefit costs than costs recovered in rates expected in future years. Deferred pension expense balances include accrued interest at the utility’s authorized rate of return, with the equity portion of the interest recognized when amounts are collected in rates. See Note 2 in the 2015 Form 10-K.

The following table presents amounts recognized in Accumulated Other Comprehensive Loss (AOCL) and the changes in AOCL related to our non-qualified employee benefit plans:



	Three Months Ended September 30,						Nine Months Ended September 30,
In thousands	2016			2015			2016			2015
Beginning balance	$	(6,825	)	$	(9,413	)	$	(7,162	)	$	(10,076	)
Amounts reclassified to AOCL	(1,795		)	—			(1,795		)	—
Amounts reclassified from AOCL:
Amortization of actuarial losses	371			549			962			1,645
Loss from plan settlement	193			—			193			—
Total reclassifications before tax	(1,231		)	549			(640		)	1,645
Tax (benefit) expense	486			(217		)	232			(650		)
Total reclassifications for the period	(745		)	332			(408		)	995
Ending balance	$	(7,570	)	$	(9,081	)	$	(7,570	)	$	(9,081	)

Employer Contributions to Company-Sponsored Defined Benefit Pension Plans

For the nine months ended September 30, 2016, we made cash contributions totaling $11.3 million to our qualified defined benefit pension plan. We expect further plan contributions of $3.2 million during the remainder of 2016.

Defined Contribution Plan

The Retirement K Savings Plan is a qualified defined contribution plan under Internal Revenue Code Section 401(k). Employer contributions totaled $3.6 million and $2.9 million for the nine months ended September 30, 2016 and 2015, respectively.

See Note 8 in the 2015 Form 10-K for more information concerning these retirement and other postretirement benefit plans.