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EMPLOYEE BENEFIT PLANS
 12 Months Ended
Dec. 31, 2013
Pension and Other Postretirement Benefit Plans  
Pension and Other Postretirement Benefits Disclosure [Text Block]
EMPLOYEE BENEFIT PLANS AND EQUITY COMPENSATION PLAN
 
Pension and Other Postretirement Benefit Plans
 
The Company sponsors a noncontributory defined benefit pension plan covering substantially all regular, full-time employees hired before January 1, 2014. In the third quarter of 2013, the Company amended its pension plan such that benefits are no longer offered to employees hired or rehired after December 31, 2013, and pension benefits for existing participants will no longer accrue for services performed or compensation earned after December 31, 2023. The Company’s policy has been to fund the plan as permitted by applicable federal income tax regulations, as determined by an independent actuary.
 
The Company’s pension plan provides benefits under a cash balance formula for employees hired before January 1, 2000 who elected that option and for all employees hired from January 1, 2000 through December 31, 2013. Under the cash balance formula, benefits accumulate as a result of compensation credits and interest credits. Employees hired before January 1, 2000 who elected to remain under the final average pay formula earn benefits based on years of credited service and the employee’s average annual base earnings received during the last three years of employment. Benefits under the cash balance formula and the final average pay formula will continue to accrue through December 31, 2023, after which date no benefits will be accrued except that participants under the cash balance formula will continue to earn interest credits.
 
In addition to pension benefits, the Company provides certain unfunded postretirement health care and life insurance benefits to certain active and retired employees. Retirees hired before January 1, 2011 share in a portion of their medical care cost. Employees hired after December 31, 2010 are responsible for the full cost of retiree medical benefits elected by them. The Company provides life insurance benefits to retirees at no charge, except that employees hired after December 31, 2010 are ineligible for retiree life insurance benefits. The costs of postretirement benefits other than pensions are accrued during the years the employees render the services necessary to be eligible for these benefits.

Changes in Benefit Obligations
 
The measurement date used to determine pension and other postretirement benefit obligations is December 31. Data related to the changes in the projected benefit obligation for pension benefits and the accumulated benefit obligation for other postretirement benefits are presented below.
 
 
Pension Benefits
 
Other Postretirement Benefits
Millions of dollars
 
2013
 
2012
 
2013
 
2012
Benefit obligation, January 1
 
$
931.6

 
$
830.1

 
$
265.3

 
$
226.1

Service cost
 
21.8

 
19.6

 
5.9

 
4.8

Interest cost
 
38.5

 
43.0

 
11.1

 
11.9

Plan participants’ contributions
 
—

 
—

 
2.6

 
2.9

Actuarial (gain) loss
 
(83.4
)
 
96.5

 
(35.1
)
 
33.4

Benefits paid
 
(60.0
)
 
(57.6
)
 
(11.8
)
 
(13.8
)
Curtailment
 
(25.5
)
 
—

 
—

 
—

Benefit obligation, December 31
 
$
823.0

 
$
931.6

 
$
238.0

 
$
265.3


 
The accumulated benefit obligation for pension benefits was $796.4 million at the end of 2013 and $874.6 million at the end of 2012. The accumulated pension benefit obligation differs from the projected pension benefit obligation above in that it reflects no assumptions about future compensation levels.
 
Significant assumptions used to determine the above benefit obligations are as follows:
 
Pension Benefits
 
Other Postretirement Benefits
 
2013
 
2012
 
2013
 
2012
Annual discount rate used to determine benefit obligation
5.03
%
 
4.10
%
 
5.19
%
 
4.19
%
Assumed annual rate of future salary increases for projected benefit obligation
3.00
%
 
3.75
%
 
3.75
%
 
3.75
%

 
A 7.4% annual rate of increase in the per capita cost of covered health care benefits was assumed for 2013. The rate was assumed to decrease gradually to 5.0% for 2020 and to remain at that level thereafter.
 
A one percent increase in the assumed health care cost trend rate would increase the postretirement benefit obligation at December 31, 2013 by $1.3 million and 2012 by $1.7 million. A one percent decrease in the assumed health care cost trend rate would decrease the postretirement benefit obligation at December 31, 2013 by $1.2 million and 2012 by $1.5 million.

Funded Status
Millions of Dollars
 
Pension Benefits
 
Other Postretirement Benefits
December 31,
 
2013
 
2012
 
2013
 
2012
Fair value of plan assets
 
$
870.0

 
$
799.1

 
—

 
—

Benefit obligation
 
823.0

 
931.6

 
$
238.0

 
$
265.3

Funded status
 
$
47.0

 
$
(132.5
)
 
$
(238.0
)
 
$
(265.3
)

 
Amounts recognized on the consolidated balance sheets consist of:
Millions of Dollars
 
Pension Benefits
 
Other Postretirement Benefits
December 31,
 
2013
 
2012
 
2013
 
2012
Current liability
 
—

 
—

 
$
(11.5
)
 
$
(11.0
)
Noncurrent asset
 
$
47.0

 
—

 
—

 
—

Noncurrent liability
 
—

 
$
(132.5
)
 
(226.5
)
 
(254.3
)

 
Amounts recognized in accumulated other comprehensive loss (a component of common equity) as of December 31, 2013 and 2012 were as follows:
Millions of Dollars
 
Pension Benefits
 
Other Postretirement Benefits
December 31,
 
2013
 
2012
 
2013
 
2012
Net actuarial loss
 
$
5.2

 
$
10.7

 
$
1.7

 
$
3.7

Prior service cost
 
0.5

 
1.0

 
0.1

 
0.1

Transition obligation
 
—

 
—

 
—

 
0.1

Total
 
$
5.7

 
$
11.7

 
$
1.8

 
$
3.9



Amounts recognized in regulatory assets as of December 31, 2013 and 2012 were as follows:
Millions of Dollars
 
Pension Benefits
 
Other Postretirement Benefits
December 31,
 
2013
 
2012
 
2013
 
2012
Net actuarial loss
 
$
124.8

 
$
297.0

 
$
24.4

 
$
57.0

Prior service cost
 
12.8

 
26.9

 
0.9

 
1.5

Transition obligation
 
—

 
—

 
—

 
0.2

Total
 
$
137.6

 
$
323.9

 
$
25.3

 
$
58.7

     
In connection with the joint ownership of Summer Station, as of December 31, 2013 and 2012, the Company recorded within deferred debits $14.1 million and $26.8 million, respectively, attributable to Santee Cooper’s portion of shared pension costs. As of December 31, 2013 and 2012, the Company also recorded within deferred debits $12.6 million and $14.7 million, respectively, from Santee Cooper, representing its portion of the unfunded postretirement benefit obligation.
 
Changes in Fair Value of Plan Assets
 
 
Pension Benefits
Millions of dollars
 
2013
 
2012
Fair value of plan assets, January 1
 
$
799.1

 
$
755.0

Actual return on plan assets
 
130.9

 
101.7

Benefits paid
 
(60.0
)
 
(57.6
)
Fair value of plan assets, December 31
 
$
870.0

 
$
799.1


 
Investment Policies and Strategies
 
The assets of the pension plan are invested in accordance with the objectives of (1) fully funding the obligations of the pension plan, (2) overseeing the plan's investments in an asset-liability framework that considers the funding surplus (or deficit) between assets and liabilities, and overall risk associated with assets as compared to liabilities, and (3) maintaining sufficient liquidity to meet benefit payment obligations on a timely basis. The pension plan is closed to new entrants effective January 1, 2014, and benefit accruals will cease effective January 1, 2024. In addition, during 2013, the Company adopted a dynamic investment strategy for the management of the pension plan assets. The strategy will lead to a reduction in equities and an increase in long duration fixed income allocations over time with the intention of reducing volatility of funded status and pension costs in connection with the amendments to the plan.

The pension plan operates with several risk and control procedures, including ongoing reviews of liabilities, investment objectives, levels of diversification, investment managers and performance expectations. The total portfolio is constructed and maintained to provide prudent diversification with regard to the concentration of holdings in individual issues, corporations, or industries.

Transactions involving certain types of investments are prohibited. These include, except where utilized by a hedge fund manager, any form of private equity; commodities or commodity contracts (except for unleveraged stock or bond index futures and currency futures and options); ownership of real estate in any form other than publicly traded securities; short sales, warrants or margin transactions, or any leveraged investments; and natural resource properties. Investments made for the purpose of engaging in speculative trading are also prohibited.

The Company’s pension plan asset allocation at December 31, 2013 and 2012 and the target allocation for 2014 are as follows: 
 
 
Percentage of Plan Assets
 
 
Target
Allocation
 
At
December 31,
Asset Category
 
2014
 
2013
 
2012
Equity Securities
 
58
%
 
59
%
 
66
%
Fixed Income
 
33
%
 
32
%
 
25
%
Hedge Funds
 
9
%
 
9
%
 
9
%

 
For 2014, the expected long-term rate of return on assets will be 8.00%. In developing the expected long-term rate of return assumptions, management evaluates the pension plan’s historical cumulative actual returns over several periods, considers the expected active returns across various asset classes and assumes an asset allocation of 58% with equity managers, 33% with fixed income managers and 9% with hedge fund managers. Management regularly reviews such allocations and periodically rebalances the portfolio when considered appropriate. Additional rebalancing may occur subject to funded status improvements as part of the dynamic investment policy adopted for 2014.
 
Fair Value Measurements
 
Assets held by the pension plan are measured at fair value as described below. Assets are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. At December 31, 2013 and 2012, fair value measurements, and the level within the fair value hierarchy in which the measurements fall, were as follows:
 
 
Fair Value Measurements at Reporting Date Using
Millions of dollars
 
Total
 
Level 1
 
Level 2
 
Level 3
 
Total
 
Level 1
 
Level 2
 
Level 3
 
 
December 31, 2013
 
December 31, 2012
Common stock
 
$
332

 
$
332

 
 
 
 
 
$
319

 
$
319

 
 
 
 
Preferred stock
 
1

 
1

 
 
 
 
 
1

 
1

 
 
 
 
Mutual funds
 
305

 
20

 
$
285

 
 
 
246

 
12

 
$
234

 
 
Short-term investment vehicles
 
19

 
 
 
19

 
 
 
20

 
 
 
20

 
 
US Treasury securities
 
33

 
 
 
33

 
 
 
42

 
 
 
42

 
 
Corporate debt securities
 
53

 
 
 
53

 
 
 
56

 
 
 
56

 
 
Loans secured by mortgages
 
12

 
 
 
12

 
 
 
11

 
 
 
11

 
 
Municipals
 
4

 
 
 
4

 
 
 
4

 
 
 
4

 
 
Limited partnerships
 
35

 
1

 
34

 
 
 
30

 
1

 
29

 
 
Multi‑strategy hedge funds
 
76

 
 
 
 
 
$
76

 
70

 
 
 
 
 
$
70

 
 
$
870

 
$
354

 
$
440

 
$
76

 
$
799

 
$
333

 
$
396

 
$
70


There were no transfers of fair value amounts into or out of Level 1, 2 or 3 during 2013 or 2012.

The pension plan values common stock, preferred stock and certain mutual funds, where applicable, using unadjusted quoted prices from a national stock exchange, such as NYSE and NASDAQ, where the securities are actively traded. Other mutual funds, common collective trusts and limited partnerships are valued using the observable prices of the underlying fund assets based on trade data for identical or similar securities or from a national stock exchange for similar assets or broker quotes. Short-term investment vehicles are funds that invest in short-term fixed income instruments and are valued using observable prices of the underlying fund assets based on trade data for identical or similar securities. Government agency securities are valued using quoted market prices or based on models using observable inputs from market sources such as external prices or spreads or benchmarked thereto. Corporate debt securities and municipals are valued based on recently executed transactions, using quoted market prices, or based on models using observable inputs from market sources such as external prices or spreads or benchmarked thereto. Loans secured by mortgages are valued using observable prices based on trade data for identical or comparable instruments. Hedge funds represent investments in a hedge fund of funds partnership that invests directly in multiple hedge fund strategies that are not traded on exchanges and do not trade on a daily basis. The fair value of this multi-strategy hedge fund is estimated based on the net asset value of the underlying hedge fund strategies using consistent valuation guidelines that account for variations that may impact their fair value. The estimated fair value is the price at which redemptions and subscriptions occur.
 
 
Fair Value Measurements
Level 3
Millions of dollars
 
2013
 
2012
Beginning Balance
 
$
70

 
$
65

Unrealized gains included in changes in net assets
 
6

 
5

Purchases, issuances, and settlements
 
—

 
—

Ending Balance
 
$
76


$
70


 
Expected Cash Flows
 
The total benefits expected to be paid from the pension plan or from the Company’s assets for the other postretirement benefits plan (net of participant contributions), respectively, are as follows:
 
Expected Benefit Payments
Millions of dollars
 
Pension Benefits
 
Other Postretirement Benefits
2014
 
$
61.5

 
$
11.7

2015
 
61.2

 
12.6

2016
 
63.8

 
13.4

2017
 
65.8

 
14.1

2018
 
66.1

 
14.7

2019-2023
 
338.4

 
82.4


  
Pension Plan Contributions
 
The pension trust is adequately funded under current regulations. No contributions have been required since 1997, and as a result of closing the plan to new entrants and freezing benefit accruals in the future, the Company does not anticipate making significant contributions to the pension plan for the foreseeable future.

Net Periodic Benefit Cost
 
The Company records net periodic benefit cost utilizing beginning of the year assumptions. Disclosures required for these plans are set forth in the following tables.
 
Components of Net Periodic Benefit Cost
 
 
Pension Benefits
 
Other Postretirement Benefits
Millions of dollars
 
2013
 
2012
 
2011
 
2013
 
2012
 
2011
Service cost
 
$
21.8

 
$
19.6

 
$
18.3

 
$
5.9

 
$
4.8

 
$
4.3

Interest cost
 
38.5

 
43.0

 
43.5

 
11.1

 
11.9

 
12.2

Expected return on assets
 
(61.4
)
 
(59.5
)
 
(63.7
)
 
n/a

 
n/a

 
n/a

Prior service cost amortization
 
6.0

 
7.0

 
7.0

 
0.7

 
0.9

 
1.0

Amortization of actuarial losses
 
16.9

 
18.4

 
12.2

 
3.3

 
1.4

 
0.4

Transition obligation amortization
 
—

 
—

 
—

 
0.3

 
0.7

 
0.7

Curtailment loss
 
9.9

 
—

 
—

 
—

 
—

 
—

Net periodic benefit cost
 
$
31.7

 
$
28.5

 
$
17.3

 
$
21.3

 
$
19.7

 
$
18.6


 
Prior to July 15, 2010, the SCPSC allowed SCE&G to defer as a regulatory asset the amount of pension cost exceeding amounts included in rates for its retail electric and gas distribution regulated operations. In connection with the SCPSC's July 2010 electric rate order and November 2010 natural gas RSA order, SCE&G began deferring, as a regulatory asset, all pension cost related to retail electric and gas operations that otherwise would have been charged to expense. Effective in January 2013, in connection with the December 2012 rate order, SCE&G began amortizing previously deferred pension costs related to retail electric operations totaling approximately $63 million over approximately 30 years (see Note 2) and recovering current pension costs related to retail electric operations through a rate rider that may be adjusted annually. Similarly, in connection with the October 2013 RSA order, deferred pension cost related to gas operations of approximately $14 million is being amortized over approximately 14 years, and effective November 2013, SCE&G is recovering current pension expense related to gas operations through cost of service rates (see Note 2).
 
Other changes in plan assets and benefit obligations recognized in other comprehensive income (net of tax) were as follows:
 
 
Pension Benefits
 
Other Postretirement Benefits
Millions of dollars
 
2013
 
2012
 
2011
 
2013
 
2012
 
2011
Current year actuarial (gain) loss
 
$
(5.0
)
 
$
1.7

 
$
2.9

 
$
(1.8
)
 
$
2.0

 
$
0.4

Amortization of actuarial losses
 
(0.5
)
 
(0.6
)
 
(0.4
)
 
(0.2
)
 
—

 
—

Amortization of prior service cost
 
(0.2
)
 
(0.2
)
 
(0.2
)
 
—

 
—

 
(0.1
)
Prior service cost (credit)
 
(0.3
)
 
—

 
—

 
—

 
—

 
—

Amortization of transition obligation
 
—

 
—

 
—

 
(0.1
)
 
(0.1
)
 
(0.1
)
Total recognized in other comprehensive income
 
$
(6.0
)
 
$
0.9

 
$
2.3

 
$
(2.1
)
 
$
1.9

 
$
0.2


 
Other changes in plan assets and benefit obligations recognized in regulatory assets were as follows:
 
 
Pension Benefits
 
Other Postretirement Benefits
Millions of dollars
 
2013
 
2012
 
2011
 
2013
 
2012
 
2011
Current year actuarial (gain) loss
 
$
(157.5
)
 
$
45.0

 
$
70.9

 
$
(29.9
)
 
$
31.4

 
$
6.0

Amortization of actuarial losses
 
(14.7
)
 
(16.0
)
 
(10.6
)
 
(2.7
)
 
(1.2
)
 
(0.3
)
Amortization of prior service cost
 
(5.2
)
 
(6.4
)
 
(6.4
)
 
(0.6
)
 
(0.8
)
 
(0.9
)
Prior service cost (credit)
 
(8.9
)
 
—

 
—

 
—

 
—

 
—

Amortization of transition obligation
 
—

 
—

 
—

 
(0.2
)
 
(0.5
)
 
(0.5
)
Total recognized in regulatory assets
 
$
(186.3
)
 
$
22.6

 
$
53.9

 
$
(33.4
)
 
$
28.9

 
$
4.3



Significant Assumptions Used in Determining Net Periodic Benefit Cost
 
Pension Benefits
 
Other Postretirement Benefits
 
2013
 
2012
 
2011
 
2013
 
2012
 
2011
Discount rate
4.10%/5.07%

 
5.25
%
 
5.56
%
 
4.19
%
 
5.35
%
 
5.72
%
Expected return on plan assets
8.00
%
 
8.25
%
 
8.25
%
 
n/a

 
n/a

 
n/a

Rate of compensation increase
3.75%/3.00%

 
4.00
%
 
4.00
%
 
3.75
%
 
4.00
%
 
4.00
%
Health care cost trend rate
n/a

 
n/a

 
n/a

 
7.80
%
 
8.20
%
 
8.00
%
Ultimate health care cost trend rate
n/a

 
n/a

 
n/a

 
5.00
%
 
5.00
%
 
5.00
%
Year achieved
n/a

 
n/a

 
n/a

 
2020

 
2020

 
2017



Net periodic benefit cost for the period through September 1, 2013 was determined using a 4.10% discount rate, and net periodic benefit cost after that date was determined using a 5.07% discount rate. Similarly, estimated rates of compensation increase were changed in connection with the September 1, 2013 remeasurement.

The estimated amounts to be amortized from accumulated other comprehensive loss into net periodic benefit cost in 2014 are as follows:
Millions of Dollars
 
Pension Benefits
 
Other Postretirement Benefits
Actuarial loss
 
$
0.2

 
—

Prior service cost
 
0.1

 
—

Total
 
$
0.3

 
—



The estimated amounts to be amortized from regulatory assets into net periodic benefit cost in 2014 are as follows:

Millions of Dollars
 
Pension Benefits
 
Other Postretirement Benefits
Actuarial loss
 
$
4.3

 
$
0.4

Prior service cost
 
3.5

 
0.3

Total
 
$
7.8

 
$
0.7



Other postretirement benefit costs are subject to annual per capita limits pursuant to the plan's design. As a result, the effect of a one-percent increase or decrease in the assumed health care cost trend rate on total service and interest cost is not significant.
 
Stock Purchase Savings Plan
 
The Company sponsors a defined contribution plan in which eligible employees may defer up to 75% of eligible earnings subject to certain limits and may diversify their investments. Employee deferrals are fully vested and nonforfeitable at all times. The Company provides 100% matching contributions up to 6% of an employee’s eligible earnings. Total matching contributions made to the plan for 2013, 2012 and 2011 were $23.4 million, $22.3 million and $21.8 million, respectively, and were made in the form of SCANA common stock.
SCE&G
  
Pension and Other Postretirement Benefit Plans  
Pension and Other Postretirement Benefits Disclosure [Text Block]
EMPLOYEE BENEFIT PLANS AND EQUITY COMPENSATION PLAN
 
Pension and Other Postretirement Benefit Plans
 
SCE&G participates in SCANA’s noncontributory defined benefit pension plan, which covers substantially all regular, full-time employees hired before January 1, 2014. In the third quarter of 2013, SCANA amended its pension plan such that benefits are no longer offered to employees hired or rehired after December 31, 2013, and pension benefits for existing participants will no longer accrue for services performed or compensation earned after December 31, 2023. SCANA’s policy has been to fund the plan as permitted by applicable federal income tax regulations, as determined by an independent actuary.
 
SCANA’s pension plan provides benefits under a cash balance formula for employees hired before January 1, 2000 who elected that option and for all employees hired from January 1, 2000 through December 31, 2013. Under the cash balance formula, benefits accumulate as a result of compensation credits and interest credits.  Employees hired before January 1, 2000 who elected to remain under the final average pay formula earn benefits based on years of credited service and the employee’s average annual base earnings received during the last three years of employment. Benefits under the cash balance formula and the final average pay formula will continue to accrue through December 31, 2023, after which date no benefits will be accrued except that participants under the cash balance formula will continue to earn interest credits.
 
In addition to pension benefits, SCE&G participates in SCANA’s unfunded postretirement health care and life insurance programs which provide benefits to certain active and retired employees. Retirees hired before January 1, 2011 share in a portion of their medical care cost. Employees hired after December 31, 2010 are responsible for the full costs of retiree medical benefits elected by them. SCANA provides life insurance benefits to retirees at no charge, except that employees hired after December 31, 2010 are ineligible for retiree life insurance benefits. The costs of postretirement benefits other than pensions are accrued during the years the employees render the services necessary to be eligible for these benefits.

The same benefit formula applies to all SCANA subsidiaries participating in the parent sponsored plans and, with regard to the pension plan, there are no legally separate asset pools. The postretirement benefit plans are accounted for as multiple employer plans. The information presented below reflects Consolidated SCE&G's portion of the obligations, assets, funded status, net periodic benefit costs, and other information reported for the parent sponsored plans as a whole. The tabular data presented reflects the use of various cost assignment methodologies and participation assumptions based on Consolidated SCE&G's past and current employees and its share of plan assets.
 
Changes in Benefit Obligations
 
The measurement date used to determine pension and other postretirement benefit obligations is December 31. Data related to the changes in the projected benefit obligation for pension benefits and the accumulated benefit obligation for other postretirement benefits are presented below.
 
 
Pension Benefits
 
Other Postretirement Benefits
Millions of dollars
 
2013
 
2012
 
2013
 
2012
Benefit obligation, January 1
 
$
788.4

 
$
705.0

 
$
206.0

 
$
178.4

Service cost
 
17.6

 
15.7

 
4.6

 
3.7

Interest cost
 
32.6

 
36.4

 
8.7

 
9.4

Plan participants’ contributions
 
—

 
—

 
2.0

 
2.3

Actuarial (gain) loss
 
(70.7
)
 
80.3

 
(27.3
)
 
26.2

Benefits paid
 
(50.6
)
 
(49.0
)
 
(9.3
)
 
(10.8
)
Curtailment
 
(21.6
)
 
—

 
—

 
—

Amounts funded to parent
 
—

 
—

 
(3.0
)
 
(3.2
)
Benefit obligation, December 31
 
$
695.7

 
$
788.4

 
$
181.7

 
$
206.0


 
The accumulated benefit obligation for pension benefits was $673.2 million at the end of 2013 and $740.2 million at the end of 2012. The accumulated pension benefit obligation differs from the projected pension benefit obligation above in that it reflects no assumptions about future compensation levels.
 
Significant assumptions used to determine the above benefit obligations are as follows: 
 
 
Pension Benefits
 
Other Postretirement Benefits
 
 
2013
 
2012
 
2013
 
2012
Annual discount rate used to determine benefit obligation
 
5.03
%
 
4.10
%
 
5.19
%
 
4.19
%
Assumed annual rate of future salary increases for projected benefit obligation
 
3.00
%
 
3.75
%
 
3.75
%
 
3.75
%

 
A 7.4% annual rate of increase in the per capita cost of covered health care benefits was assumed for 2013. The rate was assumed to decrease gradually to 5.0% for 2020 and to remain at that level thereafter.
 
A one percent increase in the assumed health care cost trend rate would increase the postretirement benefit obligation at December 31, 2013 by $1.0 million and at December 31, 2012 by $1.3 million. A one percent decrease in the assumed health care cost trend rate would decrease the postretirement benefit obligation at December 31, 2013 by $0.9 million and 2012 by $1.2 million.

Funded Status
Millions of Dollars
 
Pension Benefits
 
Other Postretirement Benefits
December 31,
 
2013
 
2012
 
2013
 
2012
Fair value of plan assets
 
$
792.1

 
$
732.0

 
—

 
—

Benefit obligation
 
695.7

 
788.4

 
$
181.7

 
$
206.0

Funded status
 
$
96.4

 
$
(56.4
)
 
$
(181.7
)
 
$
(206.0
)

 
Amounts recognized on the consolidated balance sheets consist of:
Millions of Dollars
 
Pension Benefits
 
Other Postretirement Benefits
December 31,
 
2013
 
2012
 
2013
 
2012
Current liability
 
—

 
—

 
$
(7.8
)
 
$
(8.5
)
Noncurrent asset
 
$
96.4

 
—

 
—

 
—

Noncurrent liability
 
—

 
$
(56.4
)
 
(173.9
)
 
(197.5
)

 
Amounts recognized in accumulated other comprehensive loss (a component of common equity) as of December 31, 2013 and 2012 were as follows:
Millions of Dollars
 
Pension Benefits
 
Other Postretirement Benefits
December 31,
 
2013
 
2012
 
2013
 
2012
Net actuarial loss
 
$
1.8

 
$
2.7

 
$
0.6

 
$
1.1

Prior service cost
 
0.2

 
0.2

 
—

 
—

Total
 
$
2.0

 
$
2.9

 
$
0.6

 
$
1.1



Amounts recognized in regulatory assets as of December 31, 2013 and 2012 were as follows:
Millions of Dollars
 
Pension Benefits
 
Other Postretirement Benefits
December 31,
 
2013
 
2012
 
2013
 
2012
Net actuarial loss
 
$
107.7

 
$
257.5

 
$
20.1

 
$
46.7

Prior service cost
 
11.1

 
23.3

 
0.7

 
1.2

Transition obligation
 
—

 
—

 
—

 
0.1

Total
 
$
118.8

 
$
280.8

 
$
20.8

 
$
48.0



In connection with the joint ownership of Summer Station, as of December 31, 2013 and 2012, SCE&G recorded within deferred debits $14.1 million and $26.8 million, respectively, attributable to Santee Cooper’s portion of shared pension costs. As of December 31, 2013 and 2012, SCE&G also recorded within deferred debits $12.6 million and $14.7 million, respectively, from Santee Cooper, representing its portion of the unfunded postretirement benefit obligation.
 
Changes in Fair Value of Plan Assets
 
 
Pension Benefits
Millions of dollars
 
2013
 
2012
Fair value of plan assets, January 1
 
$
732.0

 
$
695.3

Actual return on plan assets
 
110.7

 
85.7

Benefits paid
 
(50.6
)
 
(49.0
)
Fair value of plan assets, December 31
 
$
792.1

 
$
732.0


 
Investment Policies and Strategies
 
The assets of the pension plan are invested in accordance with the objectives of (1) fully funding the obligations of the pension plan, (2) overseeing the plan's investments in an asset-liability framework that considers the funding surplus (or deficit) between assets and liabilities, and overall risk associated with assets as compared to liabilities, and (3) maintaining sufficient liquidity to meet benefit payment obligations on a timely basis. The pension plan is closed to new entrants effective January 1, 2014, and benefit accruals will cease effective January 1, 2024. In addition, during 2013, SCANA adopted a dynamic investment strategy for the management of the pension plan assets. The strategy will lead to a reduction in equities and an increase in long duration fixed income allocations over time with the intention of reducing volatility of funded status and pension costs in connection with the amendments to the plan.

The pension plan operates with several risk and control procedures, including ongoing reviews of liabilities, investment objectives, levels of diversification, investment managers and performance expectations. The total portfolio is constructed and maintained to provide prudent diversification with regard to the concentration of holdings in individual issues, corporations, or industries.

Transactions involving certain types of investments are prohibited. These include, except where utilized by a hedge fund manager, any form of private equity; commodities or commodity contracts (except for unleveraged stock or bond index futures and currency futures and options); ownership of real estate in any form other than publicly traded securities; short sales, warrants or margin transactions, or any leveraged investments; and natural resource properties. Investments made for the purpose of engaging in speculative trading are also prohibited.
 
The pension plan asset allocation at December 31, 2013 and 2012 and the target allocation for 2014 are as follows:
 
 
 
Percentage of Plan Assets
 
 
Target
Allocation
 
At
December 31,
Asset Category
 
2014
 
2013
 
2012
Equity Securities
 
58
%
 
59
%
 
66
%
Fixed Income
 
33
%
 
32
%
 
25
%
Hedge Funds
 
9
%
 
9
%
 
9
%

 
For 2014, the expected long-term rate of return on assets will be 8.00%.  In developing the expected long-term rate of return assumptions, management evaluates the pension plan’s historical cumulative actual returns over several periods, considers the expected active returns across various asset classes and assumes an asset allocation of 58% with equity managers, 33% with fixed income managers and 9% with hedge fund managers. Management regularly reviews such allocations and periodically rebalances the portfolio when considered appropriate. Additional rebalancing may occur subject to funded status improvements as part of the dynamic investment policy adopted for 2014.
 
Fair Value Measurements
 
Assets held by the pension plan are measured at fair value as described below. Assets are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. At December 31, 2013 and 2012, fair value measurements, and the level within the fair value hierarchy in which the measurements fall, were as follows:
 
 
Fair Value Measurements at Reporting Date Using
Millions of dollars
 
Total
 
Level 1
 
Level 2
 
Level 3
 
Total
 
Level 1
 
Level 2
 
Level 3
 
 
December 31, 2013
 
December 31, 2012
Common stock
 
$
302

 
$
302

 
 

 
 

 
$
292

 
$
292

 
 
 
 
Preferred stock
 
1

 
1

 
 

 
 

 
1

 
1

 
 
 
 
Mutual funds
 
278

 
18

 
$
260

 
 

 
226

 
12

 
$
214

 
 
Short-term investment vehicles
 
18

 
 
 
18

 
 

 
18

 
 
 
18

 
 
US Treasury securities
 
30

 
 
 
30

 
 

 
38

 
 
 
38

 
 
Corporate debt securities
 
48

 
 
 
48

 
 

 
52

 
 
 
52

 
 
Loans secured by mortgages
 
11

 
 
 
11

 
 

 
10

 
 
 
10

 
 
Municipals
 
3

 
 
 
3

 
 

 
4

 
 
 
4

 
 
Limited partnerships
 
32

 
1

 
31

 
 

 
27

 
1

 
26

 
 
Multi-strategy hedge funds
 
69

 
 
 
 
 
$
69

 
64

 
 
 
 
 
$
64

 
 
$
792

 
$
322

 
$
401

 
$
69

 
$
732

 
$
306

 
$
362

 
$
64



There were no transfers of fair value amounts into or out of Levels 1, 2 or 3 during 2013 or 2012.

The pension plan values common stock, preferred stock and certain mutual funds, where applicable, using unadjusted quoted prices from a national stock exchange, such as NYSE and NASDAQ, where the securities are actively traded. Other mutual funds, common collective trusts and limited partnerships are valued using the observable prices of the underlying fund assets based on trade data for identical or similar securities or from a national stock exchange for similar assets or broker quotes. Short-term investment vehicles are funds that invest in short-term fixed income instruments and are valued using observable prices of the underlying fund assets based on trade data for identical or similar securities. Government agency securities are valued using quoted market prices or based on models using observable inputs from market sources such as external prices or spreads or benchmarked thereto. Corporate debt securities and municipals are valued based on recently executed transactions, using quoted market prices, or based on models using observable inputs from market sources such as external prices or spreads or benchmarked thereto. Loans secured by mortgages are valued using observable prices based on trade data for identical or comparable instruments. Hedge funds represent investments in a hedge fund of funds partnership that invests directly in multiple hedge fund strategies that are not traded on exchanges and do not trade on a daily basis. The fair value of this multi-strategy hedge fund is estimated based on the net asset value of the underlying hedge fund strategies using consistent valuation guidelines that account for variations that may impact their fair value. The estimated fair value is the price at which redemptions and subscriptions occur.
 
 
 
Fair Value Measurements
Level 3
Millions of dollars
 
2013
 
2012
Beginning Balance
 
$
64

 
$
60

Unrealized gains included in changes in net assets
 
5

 
4

Purchases, issuances, and settlements
 
—

 
—

Transfers in or out of Level 3
 
—

 
—

Ending Balance
 
$
69

 
$
64


 
Expected Cash Flows
 
The total benefits expected to be paid from the pension plan or from SCE&G’s assets for the other postretirement benefits plan (net of participant contributions), respectively, are as follows:

Expected Benefit Payments
Millions of dollars
 
Pension Benefits
 
Other Postretirement Benefits
2014
 
$
61.5

 
$
9.3

2015
 
61.2

 
10.0

2016
 
63.8

 
10.6

2017
 
65.8

 
11.1

2018
 
66.1

 
11.6

2019 - 2023
 
338.4

 
65.1


 
Pension Plan Contributions
 
The pension trust is adequately funded under current regulations. No contributions have been required since 1997, and as a result of closing the plan to new entrants and freezing benefit accruals in the future, SCE&G does not anticipate making significant contributions to the pension plan for the foreseeable future.

Net Periodic Benefit Cost
 
SCE&G records net periodic benefit cost utilizing beginning of the year assumptions. Disclosures required for these plans are set forth in the following tables.
 
Components of Net Periodic Benefit Cost
 
 
Pension Benefits
 
Other Postretirement Benefits
Millions of dollars
 
2013
 
2012
 
2011
 
2013
 
2012
 
2011
Service cost
 
$
17.6

 
$
15.7

 
$
14.7

 
$
4.6

 
$
3.7

 
$
3.4

Interest cost
 
32.6

 
36.4

 
37.0

 
8.7

 
9.4

 
9.6

Expected return on assets
 
(51.9
)
 
(50.4
)
 
(54.2
)
 
n/a

 
n/a

 
n/a

Prior service cost amortization
 
5.0

 
6.0

 
6.0

 
0.6

 
0.7

 
0.8

Amortization of actuarial losses
 
14.3

 
15.6

 
10.4

 
2.6

 
1.1

 
0.3

Curtailment
 
8.4

 
—

 
—

 
—

 
—

 
—

Transition obligation amortization
 
—

 
—

 
—

 
—

 
—

 
(0.1
)
Net periodic benefit cost
 
$
26.0

 
$
23.3

 
$
13.9

 
$
16.5

 
$
14.9

 
$
14.0


 
Prior to July 15, 2010, the SCPSC allowed SCE&G to defer as a regulatory asset the amount of pension cost exceeding amounts included in rates for its retail electric and gas distribution regulated operations. In connection with the SCPSC's July 2010 electric rate order and November 2010 natural gas RSA order, SCE&G began deferring, as a regulatory asset, all pension costs related to retail electric and gas operations that otherwise would have been charged to expense. Effective in January 2013, in connection with the December 2012 rate order, SCE&G began amortizing previously deferred pension cost related to retail electric operations totaling approximately $63 million over approximately 30 years (see Note 2) and recovering current pension costs related to retail electric operations through a rate rider that may be adjusted annually. Similarly, in connection with the October 2013 RSA order, deferred pension cost related to gas operations of approximately $14 million is being amortized over approximately 14 years, and effective November 2013, SCE&G is recovering current pension expense related to gas operations through cost of service rates (see Note 2).

 Other changes in plan assets and benefit obligations recognized in other comprehensive income (net of tax) were as follows:
 
 
Pension Benefits
 
Other Postretirement
Benefits
Millions of dollars
 
2013
 
2012
 
2011
 
2013
 
2012
 
2011
Current year actuarial (gain) loss
 
$
(0.8
)
 
$
0.4

 
$
0.7

 
$
(0.4
)
 
$
0.7

—

$
0.1

Amortization of actuarial losses
 
(0.1
)
 
(0.1
)
 
(0.1
)
 
(0.1
)
 
—

—

—

Amortization of prior service cost
 
—

 
(0.1
)
—

(0.1
)
 
—

 
(0.1
)
—

—

Prior service cost (credit)
 
—

 
—

400,000

—

 
—

 
—

—

—

Amortization of transition obligation
 
—

 
—

—

—

 
—

 
—

 
—

Total recognized in other comprehensive income (loss)
 
$
(0.9
)
 
$
0.2

400,000

$
0.5

 
$
(0.5
)
 
$
0.6



$
0.1


 

Other changes in plan assets and benefit obligations recognized in regulatory assets were as follows:
 
 
Pension Benefits
 
Other Postretirement
Benefits
Millions of dollars
 
2013
 
2012
 
2011
 
2013
 
2012
 
2011
Current year actuarial (gain) loss
 
$
(137.1
)
 
$
37.9

 
$
61.8

 
$
(24.4
)
 
$
25.7

—

$
5.0

Amortization of actuarial losses
 
(12.7
)
 
(14.0
)
 
(9.3
)
 
(2.2
)
 
(1.0
)
—

(0.2
)
Amortization of prior service cost
 
(4.5
)
 
(5.7
)
—

(5.5
)
 
(0.5
)
 
(0.7
)
—

(0.7
)
Prior service cost (credit)
 
(7.7
)
 
—

400,000

—

 
—

 
—

—

—

Amortization of transition obligation
 
—

 
—

—

—

 
(0.1
)
 
(0.2
)
 
(0.2
)
Total recognized in regulatory assets
 
$
(162.0
)
 
$
18.2



$
47.0

 
$
(27.2
)
 
$
23.8

 
$
3.9




Significant Assumptions Used in Determining Net Periodic Benefit Cost
 
 
Pension Benefits
 
Other Postretirement
Benefits
 
 
2013
 
2012
 
2011
 
2013
 
2012
 
2011
Discount rate
 
4.10%/5.07%

 
5.25
%
 
5.56
%
 
4.19
%
 
5.35
%
 
5.72
%
Expected return on plan assets
 
8.00
%
 
8.25
%
 
8.25
%
 
n/a

 
n/a

 
n/a

Rate of compensation increase
 
3.75%/3.00%

 
4.00
%
 
4.00
%
 
3.75
%
 
4.00
%
 
4.00
%
Health care cost trend rate
 
n/a

 
n/a

 
n/a

 
7.80
%
 
8.20
%
 
8.00
%
Ultimate health care cost trend rate
 
n/a

 
n/a

 
n/a

 
5.00
%
 
5.00
%
 
5.00
%
Year achieved
 
n/a

 
n/a

 
n/a

 
2020

 
2020

 
2017


 
Net periodic benefit cost for the period through September 1, 2013, was determined using a 4.10% discount rate, and net periodic benefit cost after that date was determined using a 5.07% discount rate. Similarly, estimated rates of compensation increase were changed in connection with the September 1, 2013 remeasurement.

The actuarial loss and prior service cost to be amortized from accumulated other comprehensive loss into net periodic benefit cost in 2014 are insignificant. 

The estimated amounts to be amortized from regulatory assets into net periodic benefit cost in 2014 are as follows:
Millions of Dollars
 
Pension Benefits
 
Other Postretirement Benefits
Actuarial loss
 
$
3.7

 
$
0.3

Prior service cost
 
3.1

 
0.3

Total
 
$
6.8

 
$
0.6



Other postretirement benefit costs are subject to annual per capita limits pursuant to the plan's design. As a result, the effect of a one-percent increase or decrease in the assumed health care cost trend rate on total service and interest cost is not significant.
 
Stock Purchase Savings Plan
 
SCE&G participates in a SCANA-sponsored defined contribution plan in which eligible employees may defer up to 75% of eligible earnings subject to certain limits and may diversify their investments. Employee deferrals are fully vested and nonforfeitable at all times. SCE&G provides 100% matching contributions up to 6% of an employee’s eligible earnings. Total matching contributions made to the plan for 2013, 2012 and 2011 were $18.7million, $17.7 million and $17.3 million, respectively, and were made in the form of SCANA common stock.