PENSION AND OTHER POSTRETIREMENT BENEFITS

12 Months Ended

Dec. 31, 2020

Retirement Benefits [Abstract]

PENSION AND OTHER POSTRETIREMENT BENEFITS

PENSION AND OTHER POSTRETIREMENT BENEFITS:SJI has several defined benefit pension plans and other postretirement benefit plans. SJG participates in the defined benefit pension plans and other postretirement benefit plans of SJI. For non-ETG employees, participation in the Company's qualified defined benefit pension plans was closed to new employees beginning in 2003; however, employees who are not eligible for these pension plans are eligible to receive an enhanced version of SJI's defined contribution plan. As part of the ETG/ELK Acquisition, SJI acquired the entities' existing pension and other post-employment plans. The plans include a qualified defined benefit, trusteed, pension plan covering most eligible employees that is funded in accordance with the requirements of the ERISA. Approximately 33% and 30% of SJI's and SJG's current, full-time, regular employees, respectively, will be entitled to annuity payments upon retirement. The Company also provides certain non-qualified benefit and defined contribution pension plans for a selected group of the Company's management and highly compensated employees. Benefits under these non-qualified pension plans are funded on a cash basis. In addition, SJI provides health care and life insurance benefits for eligible retired employees through a postretirement benefit plan.

Net periodic benefit cost related to the SJI employee and officer pension and other postretirement benefit plans consisted of the following components (in thousands):

SJI (includes SJG and all other consolidated subsidiaries):	Pension Benefits
	2020		2019		2018
Service Cost	$	5,871	$	5,583	$	6,442
Interest Cost	15,017		17,294		13,778
Expected Return on Plan Assets	(21,929)		(20,195)		(18,672)
Amortizations:
Prior Service Cost	105		105		116
Actuarial Loss	10,845		9,550		11,528
Net Periodic Benefit Cost	9,909		12,337		13,192
Settlement, Curtailment and Special Termination Costs	781		955		7,324
Capitalized Benefit Costs	(1,969)		(2,008)		(2,243)
Deferred Benefit Costs	(1,591)		(2,411)		(1,987)
Total Net Periodic Benefit Expense	$	7,130	$	8,873	$	16,286

SJI (includes SJG and all other consolidated subsidiaries):	Other Postretirement Benefits
	2020		2019		2018
Service Cost	$	681	$	533	$	945
Interest Cost	2,367		2,884		2,430
Expected Return on Plan Assets	(5,381)		(4,571)		(4,286)
Amortizations:
Prior Service Credits	(624)		(561)		(344)
Actuarial Loss	853		1,163		903
Net Periodic Benefit (Credit) Cost	(2,104)		(552)		(352)
Settlement, Curtailment and Special Termination Costs	—		—		1,286
Capitalized Benefit Costs	(209)		(201)		(290)
Deferred Benefit Costs	935		357		580
Total Net Periodic Benefit (Income) Expense	$	(1,378)	$	(396)	$	1,224

Net periodic benefit cost related to the SJG employee and officer pension and other postretirement benefit plans consisted of the following components (in thousands):

SJG:	Pension Benefits
	2020		2019		2018
Service Cost	$	3,797	$	3,621	$	5,073
Interest Cost	9,695		11,067		10,010
Expected Return on Plan Assets	(11,903)		(11,028)		(12,513)
Amortization:
Prior Service Cost	95		95		112
Actuarial Loss	9,364		8,224		10,074
Net Periodic Benefit Cost	11,048		11,979		12,756
Capitalized Benefit Costs	(1,395)		(1,437)		(1,943)
Affiliate SERP Allocations	(3,938)		(3,541)		(3,861)
Deferred Benefit Costs	(1,591)		(2,411)		(1,987)
Total Net Periodic Benefit Expense	$	4,124	$	4,590	$	4,965

SJG:	Other Postretirement Benefits
	2020		2019		2018
Service Cost	$	396	$	343	$	583
Interest Cost	1,463		1,863		1,698
Expected Return on Plan Assets	(3,860)		(3,220)		(3,449)
Amortization:
Prior Service Credits	(502)		(474)		(257)
Actuarial Loss	672		1,042		695
Net Periodic Benefit Credits	(1,831)		(446)		(730)
Capitalized Benefit Costs	(166)		(155)		(257)
Deferred Benefit Costs	935		357		580
Total Net Periodic Benefit Income	$	(1,062)	$	(244)	$	(407)

Settlement, Curtailment and Special Termination Costs reflected in the tables above in 2020 relate to a settlement of certain participant's benefits under ETG's pension plan, and for 2019 and 2018 relate to the ERIP offered in 2018 as discussed below. Capitalized benefit costs reflected in the tables above relate to the Utilities' construction programs. Only the service cost component of net benefit cost is eligible for capitalization.

Companies with publicly traded equity securities that sponsor a postretirement benefit plan are required to fully recognize, as an asset or liability, the overfunded or underfunded status of its benefit plans and recognize changes in the funded status in the year in which the changes occur. Changes in funded status are generally reported in AOCL; however, since the Utilities recover all prudently incurred pension and postretirement benefit costs from its ratepayers, a significant portion of the charges resulting from the recording of additional liabilities under this requirement are reported as regulatory assets (see Note 11).

Details of the activity within the Regulatory Asset and AOCL associated with Pension and Other Postretirement Benefits are as follows (in thousands):

SJI (includes SJG and all other consolidated subsidiaries):	Regulatory Assets				Accumulated Other Comprehensive Loss  (pre-tax)
	Pension Benefits		Other Postretirement Benefits		Pension Benefits		Other Postretirement Benefits
Balance at January 1, 2019	$	67,539	$	15,219	$	42,525	$	687
Amounts Arising during the Period:
Net Actuarial (Loss) Gain	(404)		(2,400)		12,865		311
Amounts Amortized to Net Periodic Costs:
Net Actuarial Loss	(5,456)		(1,042)		(4,094)		(121)
Prior Service (Credits) Cost	(95)		474		(11)		87
Balance at December 31, 2019	61,584		12,251		51,285		964
Amounts Arising during the Period:
Net Actuarial Gain	17,377		1,718		11,459		2,194
Prior Service Credit	—		(436)		—		(317)
Amounts Amortized to Net Periodic Costs:
Net Actuarial Loss	(6,337)		(672)		(5,244)		(180)
Prior Service (Credits) Cost	(95)		502		(11)		107
Balance at December 31, 2020	$	72,529	$	13,363	$	57,489	$	2,768

SJG:	Regulatory Assets				Accumulated Other Comprehensive Loss (pre-tax)
	Pension Benefits		Other Postretirement Benefits		Pension Benefits		Other Postretirement Benefits
Balance at January 1, 2019	$	65,493	$	14,628	$	34,396	$	—
Amounts Arising during the Period:
Net Actuarial Gain (Loss)	726		(2,718)		10,562		—
Amounts Amortized to Net Periodic Costs:
Net Actuarial Loss	(5,456)		(1,042)		(2,768)		—
Prior Service (Cost) Credit	(95)		474		—		—
Balance at December 31, 2019	60,668		11,342		42,190		—
Amounts Arising during the Period:
Net Actuarial Gain	10,595		1,014		9,119		—
Prior Service Credit	—		(436)		—		—
Amounts Amortized to Net Periodic Costs:
Net Actuarial Loss	(5,492)		(672)		(3,872)		—
Prior Service (Cost) Credit	(95)		502		—		—
Balance at December 31, 2020	$	65,676	$	11,750	$	47,437	$	—

The estimated costs that will be amortized from Regulatory Assets for SJI and SJG into net periodic benefit costs in 2021 are as follows (in thousands): 

SJI and SJG are the same for both entities):	Pension Benefits		Other Postretirement Benefits
Prior Service Cost/(Credit)	$	88	$	(502)
Net Actuarial Loss	$	5,864	$	854

The estimated costs that will be amortized from AOCL for SJI and SJG into net periodic benefit costs in 2021 are as follows (in thousands):

	Pension Benefits		Other Postretirement  Benefits
SJI (includes SJG and all other consolidated subsidiaries):
Prior Service Cost/(Credit)	$	10	$	(107)
Net Actuarial Loss	$	6,444	$	232
SJG:
Prior Service Cost/(Credit)	$	—	$	—
Net Actuarial Loss	$	5,002	$	—

A reconciliation of the plans' benefit obligations, fair value of plan assets, funded status and amounts recognized in SJI's consolidated balance sheets follows (in thousands): 

SJI (includes SJG and all other consolidated subsidiaries):	Pension Benefits				Other Postretirement Benefits
	2020		2019		2020		2019
Change in Benefit Obligations:
Benefit Obligation at Beginning of Year	$	439,373	$	402,156	$	73,659	$	69,511
Service Cost	5,871		5,583		681		533
Interest Cost	15,017		17,294		2,367		2,884
Actuarial Loss	48,316		44,047		3,933		5,228
Retiree Contributions	—		—		84		59
Plan Amendments	—		955		(753)		—
Benefits Paid	(19,569)		(30,662)		(4,431)		(4,556)
Settlement	(7,160)		—		—		—
Benefit Obligation at End of Year	$	481,848	$	439,373	$	75,540	$	73,659
Change in Plan Assets:
Fair Value of Plan Assets at Beginning of Year	$	312,497	$	287,220	$	82,522	$	70,531
Actual Return on Plan Assets	41,344		51,812		5,348		11,990
Employer Contributions	3,875		4,127		4,347		4,498
Retiree Contributions	—		—		84		59
Benefits Paid	(19,569)		(30,662)		(4,431)		(4,556)
Settlement	(7,160)		—		—		—
Fair Value of Plan Assets at End of Year	$	330,987	$	312,497	$	87,870	$	82,522
Funded Status at End of Year:	$	(150,861)	$	(126,876)	$	12,330	$	8,863
Amounts Related to Unconsolidated Affiliate	(495)		(2)		299		233
Accrued Net Benefit (Cost) Credit at End of Year	$	(151,356)	$	(126,878)	$	12,629	$	9,096
Amounts Recognized in the Statement of Financial Position Consist of:
Current Liabilities	$	(3,704)	$	(3,727)	$	—	$	—
Noncurrent Liabilities	(147,652)		(123,151)		12,629		9,096
Net Amount Recognized at End of Year	$	(151,356)	$	(126,878)	$	12,629	$	9,096
Amounts Recognized in Regulatory Assets Consist of:
Prior Service Costs (Credits)	$	197	$	292	$	(5,225)	$	(5,290)
Net Actuarial Loss	72,332		61,292		18,588		17,541
	$	72,529	$	61,584	$	13,363	$	12,251
Amounts Recognized in Accumulated Other Comprehensive Loss Consist of (pre-tax):
Prior Service Costs (Credits)	$	22	$	32	$	(1,829)	$	(1,619)
Net Actuarial Loss	57,467		51,253		4,597		2,583
	$	57,489	$	51,285	$	2,768	$	964

SJG:					Other
	Pension Benefits				Postretirement Benefits
	2020		2019		2020		2019
Change in Benefit Obligations:
Benefit Obligation at Beginning of Year	$	286,517	$	264,823	$	47,306	$	44,882
Service Cost	3,797		3,621		396		343
Interest Cost	9,695		11,067		1,463		1,863
Actuarial Loss (Gain)	27,561		24,020		(167)		3,481
Retiree Contributions	—		—		13		6
Plan Amendments	3,464		—		(436)		—
Benefits Paid	(12,772)		(17,014)		(2,386)		(3,269)
Benefit Obligation at End of Year	$	318,262	$	286,517	$	46,189	$	47,306
Change in Plan Assets:
Fair Value of Plan Assets at Beginning of Year	$	170,959	$	160,285	$	59,190	$	49,770
Actual Return on Plan Assets	19,914		23,760		2,679		9,419
Employer Contributions	3,840		3,927		2,373		3,264
Retiree Contributions	—		—		13		6
Benefits Paid	(12,773)		(17,013)		(2,386)		(3,269)
Fair Value of Plan Assets at End of Year	$	181,940	$	170,959	$	61,869	$	59,190
Funded Status at End of Year:
Accrued Net Benefit (Cost) Credit at End of Year	$	(136,322)	$	(115,558)	$	15,680	$	11,884
Amounts Recognized in the Statement of Financial Position Consist of:
Current Liabilities	$	(3,669)	$	(3,693)	$	—	$	—
Noncurrent Liabilities	(132,653)		(111,865)		15,680		11,884
Net Amount Recognized at End of Year	$	(136,322)	$	(115,558)	$	15,680	$	11,884
Amounts Recognized in Regulatory Assets Consist of:
Prior Service Costs (Credits)	$	197	$	292	$	(5,225)	$	(5,290)
Net Actuarial Loss	65,479		60,376		16,975		16,632
Net Amount Recognized at End of Year	$	65,676	$	60,668	$	11,750	$	11,342
Amounts Recognized in Accumulated Other Comprehensive Loss Consist of:
Net Actuarial Loss	$	47,437	$	42,190	$	—	$	—

The PBO and ABO of SJI's qualified employee pension plans were $388.3 million and $370.2 million, respectively, as of December 31, 2020; and $354.9 million and $335.6 million, respectively, as of December 31, 2019.  The ABO of these plans exceeded the value of the plan assets as seen in the SJI table above under "Change in Plan Assets." The PBO and ABO for SJI's non-funded SERP were $93.6 million and $90.6 million, respectively, as of December 31, 2020; and $84.5 million and $80.5 million, respectively, as of December 31, 2019. SJI's SERP obligation, along with the obligations under ETG's pension and other postretirement benefit plans, are reflected in the tables above.

The PBO and ABO of SJG's qualified employee pension plans were $218.4 million and $207.8 million, respectively, as of December 31, 2020; and $199.3 million and $188.1 million, respectively, as of December 31, 2019. The ABO of these plans exceeded the value of the plan assets as seen in the SJG table above under "Change in Plan Assets." The PBO and ABO for SJG's non-funded SERP were $93.2 million and $90.2 million, respectively, as of December 31, 2020; and $84.1 million and $80.1 million, respectively, as of December 31, 2019. SJG's SERP obligation is reflected in the tables above.

Actuarial losses incurred in 2020 and 2019 are primarily a result of a decrease in the discount rate assumptions used to estimate the benefit obligations as of December 31, 2020 and 2019, respectively, compared to the prior year.

The weighted-average assumptions used to determine benefit obligations for SJI and SJG at December 31 were:

	Pension Benefits				Other Postretirement Benefits
	2020		2019		2020		2019
Discount Rate	2.73	%	3.49	%	2.61	%	3.43	%
Rate of Compensation Increase	3.00	%	3.00	%	3.00	%	3.00	%

The weighted-average assumptions used to determine net periodic benefit cost (credit) for SJI and SJG for the years ended December 31 were:

	Pension Benefits						Other Postretirement Benefits
	2020		2019		2018		2020		2019		2018
Discount Rate	3.49	%	4.39	%	3.73	%	3.43	%	4.31	%	4.13	%
Expected Long-Term Return on Plan Assets	7.25	%	7.25	%	7.25	%	6.75	%	6.75	%	6.75	%
Rate of Compensation Increase	3.00	%	3.50	%	3.50	%	3.00	%	3.50	%	3.50	%

The SOA updates the mortality projection on an annual basis. The Company utilizes the most current projection tables available. The obligations as of December 31, 2020, 2019 and 2018, disclosed herein, reflect the use of the updated projection tables applicable to those years.

The discount rates used to determine the benefit obligations at each year end, which are used to determine the net periodic benefit cost for the subsequent year, were based on a portfolio model of high-quality investments with maturities that match the expected benefit payments under our pension and other postretirement benefit plans.

The expected long-term return on plan assets (“return”) has been determined by applying long-term capital market projections provided by our pension plan Trustee to the asset allocation guidelines, as defined in SJI's and SJG's investment policy, to arrive at a weighted average return.  For certain other equity securities held by an investment manager outside of the control of the Trustee, the return has been determined based on historic performance in combination with long-term expectations.  The return for the other postretirement benefits plan is determined in the same manner as discussed above; however, the expected return is reduced based on the taxable nature of the underlying trusts. 

PLAN ASSETS - SJI's and SJG's overall investment strategy for pension plan assets is to achieve a diversification by asset class, style of manager, and sector and industry limits to achieve investment results that match the actuarially assumed rate of return, while preserving the inflation adjusted value of the plans.  The target allocations for pension plan assets are 40-70 percent U.S. equity securities, 10-25 percent international equity securities, 25-60 percent fixed income investments, and 0-20 percent to all other types of investments.  Equity securities include investments in large-cap, mid-cap and small-cap companies within mutual funds.  Fixed income securities include group annuity contracts for pension payments, and hedge funds.  Other types of investments include investments in private equity funds and real estate funds that follow several different strategies.

The strategy recognizes that risk and volatility are present to some degree with all types of investments.  SJI and SJG seek to avoid high levels of risk at the total fund level through diversification by asset class, style of manager, and sector and industry limits.  Specifically prohibited investments include, but are not limited to, venture capital, margin trading, commodities and securities of companies with less than $250.0 million capitalization (except in the small-cap portion of the fund where capitalization levels as low as $50.0 million are permissible).  These restrictions are only applicable to individual investment managers with separately managed portfolios and do not apply to mutual funds or commingled trusts.

SJI evaluated its pension and other postretirement benefit plans' asset portfolios for the existence of significant concentrations of credit risk as of December 31, 2020.  Types of concentrations that were evaluated include, but are not limited to, investment concentrations in a single entity, type of industry, foreign country, and individual fund.  As of December 31, 2020, there were no significant concentrations (defined as greater than 10 percent of plan assets) of risk in SJI's pension and other postretirement benefit plan assets.

GAAP establishes a hierarchy that prioritizes fair value measurements based on the types of inputs used for the various valuation techniques.  This hierarchy groups assets into three distinct levels, as fully described in Note 17, which will serve as the basis for presentation throughout the remainder of this Note.

The fair values of SJI's and SJG's pension plan assets at December 31, 2020 and 2019 by asset category are as follows (in thousands): 

SJI (includes SJG and all other consolidated subsidiaries):
Asset Category	Total		Level 1		Level 2		Level 3
As of December 31, 2020
Cash / Cash Equivalents:
Cash	$	881	$	881	$	—	$	—
STIF-Type Instrument (a)	5,779		5,779		—		—
Equity securities:
U.S. Large-Cap (b)	100,322		100,322		—		—
U.S. Mid-Cap (b)	17,774		17,774		—		—
U.S. Small-Cap (b)	14,938		14,938		—		—
International (b)	86,085		86,085		—		—
Fixed Income:
Core Plus Fixed Income (d)	54,066		27,296		26,770		—
Other types of investments:
Long Term Fixed (d)	41,194		41,194		—		—
Subtotal Fair Value	$	321,039	$	294,269	$	26,770	$	—
Measured at net asset value practical expedient:
Private Equity Fund (e)	$	9,948
Subtotal measured at net asset value practical expedient	$	9,948
Total Fair Value	$	330,987

Asset Category	Total		Level 1		Level 2		Level 3
As of December 31, 2019
Cash / Cash Equivalents:
Cash	$	2,493	$	2,493	$	—	$	—
STIF-Type Instrument (a)	1,702		1,676		26		—
Equity securities:
U.S. Large-Cap (b)	30,863		30,863		—		—
U.S. Mid-Cap (b)	5,862		5,862		—		—
U.S. Small-Cap (b)	3,958		3,958		—		—
International (b)	33,523		33,523		—		—
Fixed Income:
Guaranteed Insurance Contract (c)	2,756		—		—		2,756
Core Plus Fixed Income (d)	23,664		17,132		6,532		—
Subtotal Fair Value	$	104,821	$	95,507	$	6,558	$	2,756
Measured at net asset value practical expedient:
Private Equity Fund (e)	$	9,650
Common/Collective Trust Funds - Real Estate (f)	11,190
	$	20,840
Other Common/Collective Trust Funds (g):
Cash/Cash Equivalents	$	23,965
Equity Securities - U.S.	1,421
	$	25,386
Subtotal measured at net asset value practical expedient	$	46,226
Items to reconcile to fair value of plan assets:
Pension Trust Receivables (h)	$	161,450
Total Fair Value	$	312,497

SJG:
Asset Category	Total		Level 1		Level 2		Level 3
As of December 31, 2020:
Cash / Cash Equivalents:
Cash	$	303	$	303	$	—	$	—
STIF-Type Instrument (a)	3,380		3,380		—		—
Equity securities:
U.S. Large-Cap (b)	52,346		52,346		—		—
U.S. Mid-Cap (b)	8,138		8,138		—		—
U.S. Small-Cap (b)	8,249		8,249		—		—
International (b)	44,120		44,120		—		—
Fixed Income:
Core Plus Fixed Income (d)	32,571		16,450		16,121		—
Long Term Fixed (d)	24,895		24,895		—		—
Subtotal Fair Value	$	174,002	$	157,881	$	16,121	$	—
Measured at net asset value practical expedient:
Private Equity Fund (e)	$	7,938
Subtotal measured at net asset value practical expedient	$	7,938
Total Fair Value	$	181,940

Asset Category	Total		Level 1		Level 2		Level 3
As of December 31, 2019:
Cash / Cash Equivalents:
Cash	$	1,482	$	1,482	$	—	$	—
STIF-Type Instrument (a)	21		—		21		—
Fixed Income:
Guaranteed Insurance Contract (c)	2,216		—		—		2,216
Subtotal Fair Value	$	3,719	$	1,482	$	21	$	2,216
Measured at net asset value practical expedient:
Private Equity Fund (e)	$	7,761
Common/Collective Trust Funds - Real Estate (f)	8,999
	16,760
Other Common/Collective Trust Funds (g):
Cash/Cash Equivalents	$	19,273
Equity Securities - U.S.	1,143
	$	20,416
Subtotal measured at net asset value practical expedient	$	37,176
Items to reconcile to fair value of plan assets:
Pension Trust Receivables (h)	$	130,064
Total Fair Value	$	170,959

(a)This category represents short-term investment funds held for the purpose of funding disbursement payment arrangements.  Underlying assets are valued based on quoted prices in active markets. These funds are classified as Level 1 investments.

(b)This category of equity investments represents a managed portfolio of common stock investments in five sectors: telecommunications, electric utilities, gas utilities, water and energy. These common stocks are actively traded on exchanges and price quotes for these shares are readily available. These common stocks are classified as Level 1 investments.

(c)This category represents SJI’s Group Annuity contracts with a nationally recognized life insurance company. The contracts are the assets of the plan, while the underlying assets of the contracts are owned by the contract holder. Valuation is based on a formula and calculation specified within the contract. Since the valuation is based on the reporting entity’s own assumptions, these contracts are classified as Level 3 investments. These contracts were liquidated in 2020.

(d)This category represents investments using a value-oriented fixed income strategy that invests primarily in a diversified mix of U.S. dollar-denominated investment-grade fixed income securities, with a predominant focus on investment-grade securities across all market sectors and maturities, as well as other alternatives such as high-yield bonds, emerging markets debt, and non-dollar bonds. Those values that can be obtained from quoted prices in active markets are classified as Level 1 investments. For those values where quoted prices are not in active markets, they are based on models using observable market information, and as such are classified as Level 2 investments.

(e)This category represents a limited partnership which includes several investments in U.S. leveraged buyout, venture capital, and special situation funds. Fund valuations are reported on a 90 to 120 day lag and, therefore, the value reported herein represents the market value as of June or September 30, 2020 and 2019, respectively, with cash flow changes through December applied. The fund’s investments are stated at fair value, which is generally based on the valuations provided by the general partners or managers of such investments.

(f)This category represents real estate common/collective trust fund investments through a commingled employee benefit trust. These commingled funds are part of a direct investment in a pool of real estate properties. These funds are valued by investment managers on a periodic basis using pricing models that use independent appraisals from sources with professional qualifications. These funds were liquidated in 2020.

(g)This category represents common/collective trust fund investments through a commingled employee benefit trust (excluding real estate). These commingled funds are not traded publicly; however, the majority of the underlying assets held in these funds are stocks and bonds that are traded on active markets. Also included in these funds are interest rate swaps, asset backed securities, mortgage backed securities and other investments with observable market values. These funds were liquidated in 2020.

(h)Primarily receivables for investment securities sold. These receivables as of December 31, 2019 were paid in 2020.

Fair Value Measurement Using Significant

Unobservable Inputs (Level 3)

(In thousands)

SJI (includes SJG and all other consolidated subsidiaries):	Guaranteed		Private
	Insurance		Equity		Real
	Contract		Funds		Estate		Total
Balance at January 1, 2019	$	8,453	$	—	$	—	$	8,453
Actual return on plan assets:
Relating to assets still held at the reporting date	144		—		—		144
Relating to assets sold during the period	226		—		—		226
Purchases, Sales and Settlements	(6,067)		—		—		(6,067)
Balance at December 31, 2019	2,756		—		—		2,756
Actual return on plan assets:
Relating to assets still held at the reporting date	—		—		—		—
Relating to assets sold during the period	—		—		—		—
Purchases, Sales and Settlements	(2,756)		—		—		(2,756)
Balance at December 31, 2020	$	—	$	—	$	—	$	—

SJG:	Guaranteed Insurance Contract		Private Equity Funds		Real Estate		Total
Balance at January 1, 2019	$	6,947	$	—	$	—	$	6,947
Actual return on plan assets:
Relating to assets still held at the reporting date	(34)		—		—		(34)
Relating to assets sold during the period	182		—		—		182
Purchases, Sales and Settlements	(4,879)		—		—		(4,879)
Balance at December 31, 2019	2,216		—		—		2,216
Actual return on plan assets:
Relating to assets still held at the reporting date	—		—		—		—
Relating to assets sold during the period	—		—		—		—
Purchases, Sales and Settlements	(2,216)		—		—		(2,216)
Balance at December 31, 2020	$	—	$	—	$	—	$	—

As with the pension plan assets, SJI's and SJG's overall investment strategy for post-retirement benefit plan assets is to achieve a diversification by asset class, style of manager, and sector and industry limits to achieve investment results that match the actuarially assumed rate of return, while preserving the inflation adjusted value of the plans.  SJI and SJG have implemented this diversification strategy with a mix of mutual funds and Company-owned life insurance policies.  The target allocations for post-retirement benefit plan assets are 55-75 percent U.S. equity securities, 10-20 percent international equity securities, 25-45 percent fixed income investments and 0-7 percent to all other types of investments.  Equity securities include investments in large-cap, mid-cap and small-cap companies within mutual funds. The insurance policies are backed by a series of commingled trust investments held by the insurance carrier.

The fair values of SJI's and SJG's other postretirement benefit plan assets at December 31, 2020 and 2019 by asset category are as follows (in thousands):

SJI (includes SJG and all other consolidated subsidiaries):
Asset Category	Total		Level 1		Level 2		Level 3
As of December 31, 2020:
Cash	$	2,334	$	2,334	$	—	$	—
Equity Securities:
U.S. Large-Cap (a)	18,839		18,839		—		—
U.S. Mid-Cap (a)	4,379		4,379		—		—
U.S. Small-Cap (a)	3,361		3,361		—		—
U.S. International (a)	20,369		20,369		—		—
Fixed Income:
Core Plus Fixed Income (c)	6,431		—		6,431		—
Mutual Funds - Bonds (a)	14,881		14,881		—		—
Subtotal Fair Value	$	70,594	$	64,163	$	6,431	$	—
Measured at net asset value practical expedient:
Company Owned Life Insurance (b)	$	17,276
Subtotal measured at net asset value practical expedient	$	17,276
Total Fair Value	$	87,870
Asset Category	Total		Level 1		Level 2		Level 3
As of December 31, 2019:
Cash	$	2,020	$	2,020	$	—	$	—
Equity Securities:
U.S. Large-Cap (a)	5,585		5,585		—		—
U.S. Mid-Cap (a)	1,038		1,038		—		—
U.S. Small-Cap (a)	695		695		—		—
U.S. International (a)	5,915		5,915		—		—
Fixed Income:
Core Plus Fixed Income (c)	1,529		777		752		—
Mutual Funds - Bonds (a)	2,588		2,588
Other Types of Investments:
STIF-Type Instrument	99		99
Subtotal Fair Value	$	19,469	$	18,717	$	752	$	—
Measured at net asset value practical expedient:
Company Owned Life Insurance (b)	$	15,820
Subtotal measured at net asset value practical expedient	$	15,820
Items to reconcile to fair value of plan assets:
Pension Trust Receivables (d)	$	47,233
Total Fair Value	$	82,522

SJG:
Asset Category	Total		Level 1		Level 2		Level 3
As of December 31, 2020
Cash	$	2,083	$	2,083	$	—	$	—
Equity Securities:
U.S. Large-Cap (a)	$	10,764	10,764		—		—
U.S. Mid-Cap (a)	$	2,591	2,591		—		—
U.S. Small-Cap (a)	$	2,200	2,200		—		—
U.S. International (a)	$	12,889	12,889		—		—
Fixed Income:
Core Plus Fixed Income (c)	$	4,741	—		4,741		—
Mutual Funds - Bonds (a)	$	10,392	10,392		—		—
Subtotal Fair Value	$	45,660	$	40,919	$	4,741	$	—
Measured at net asset value practical expedient:
Company Owned Life Insurance (b)	$	16,209
Subtotal measured at net asset value practical expedient	$	16,209
Total Fair Value	$	61,869
Asset Category	Total		Level 1		Level 2		Level 3
As of December 31, 2019
Cash	$	1,895	$	1,895	$	—	$	—
Subtotal Fair Value	$	1,895	$	1,895	$	—	$	—
Measured at net asset value practical expedient:
Company Owned Life Insurance (b)	$	14,843
Subtotal measured at net asset value practical expedient	$	14,843
Items to reconcile to fair value of plan assets:
Pension Trust Receivables (d)	$	42,452
Total Fair Value	$	59,190

(a)This category represents a managed portfolio of common stock investments in five sectors: telecommunications, electric utilities, gas utilities, water and energy. These common stocks are actively traded on exchanges and price quotes for these shares are readily available. These common stocks are classified as Level 1 investments.

(b)This category represents company-owned life insurance policies with a nationally known life insurance company. The value of these policies is backed by a series of common/collective trust funds held by the insurance carrier.

(c)This category represents investments using a value-oriented fixed income strategy that invests primarily in a diversified mix of U.S. dollar-denominated investment-grade fixed income securities, with a predominant focus on investment-grade securities across all market sectors and maturities, as well as other alternatives such as high-yield bonds, emerging markets debt, and non-dollar bonds. Those values that can be obtained from quoted prices in active markets are classified as Level 1 investments. For those values where quoted prices are not in active markets, they are based on models using observable market information, and as such are classified as Level 2 investments.

(d)Primarily receivables for investment securities sold. These receivables as of December 31, 2019 were paid in 2020.

FUTURE BENEFIT PAYMENTS - The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid during the following years (in thousands):

SJI (includes SJG and all other consolidated subsidiaries):	Pension Benefits		Other Postretirement Benefits
2021	$	21,881	$	5,486
2022	$	22,448	$	5,379
2023	$	23,244	$	5,214
2024	$	23,983	$	4,908
2025	$	24,189	$	4,682
2026 - 2030	$	131,534	$	19,647

SJG:	Pension Benefits		Other Postretirement Benefits
2021	$	13,090	$	3,619
2022	$	13,539	$	3,531
2023	$	14,014	$	3,467
2024	$	14,683	$	3,277
2025	$	15,332	$	3,095
2026 - 2030	$	86,590	$	12,684

CONTRIBUTIONS - SJI and SJG did not make contributions to its employee pension plans in 2020, 2019, or 2018. Payments related to the unfunded SERP plan for SJI and SJG in 2020, 2019 and 2018 were $3.9 million, $4.1 million and $2.7 million, respectively. SERP payments for SJI and SJG are expected to approximate $3.7 million in 2021.

DEFINED CONTRIBUTION PLAN - SJI, SJG and ETG offer a Savings Plan to eligible employees.  For employees eligible for participation in the defined benefit pension plans, SJI and SJG match 50% of participants' contributions to the Savings Plan up to 6% of base compensation. For employees who are not eligible for participation in the defined benefit pension plans, SJI and SJG match 50% of participants' contributions up to 8% of base compensation, as well as a year-end contribution of $1,500, if 10 or fewer years of service, or $2,000, if more than 10 years of service. The amount expensed and contributed for the matching provision of the Savings Plan for SJI approximated $4.6 million, $3.4 million and $3.3 million for the years ended December 31, 2020, 2019 and 2018, respectively, and $1.6 million, $1.2 million and $1.8 million for SJG for the years ended December 31, 2020, 2019 and 2018, respectively.

VSIP - SJG entered into a VSIP program with IBEW Local 1293 and IAM Local 76 union employees over the age of 60 years old with 10 or more years of service to SJG. Communication was made to these employees in both the first and second quarter 2020, with acceptance made by the Local 1293 employees by April 14, 2020 and by the Local 76 employees by May 6, 2020. Total cost to SJG for the VSIP recorded during 2020 was $0.6 million, all of which related to employees of SJG and was included in Operations Expense on the consolidated statements of income of SJI and SJG for the year ended December 31, 2020.

ERIP - In 2018, the Company offered an ERIP to non-union, non-Officer employees over the age of 55 years old with 20 or more years of service to the Company as well as to Officers over the age of 55 years old with 5 or more years of service to the Company. Communication was made to these employees in the fourth quarter 2018, with acceptance made by non-union employees by December 15, 2018 and by Officers by December 31, 2018. Total cost to the Company for the ERIP was $13.4 million, of which $8.3 million was included in Operations Expense on the consolidated statements of income as of December 31, 2018, and $5.1 million was related to employees of SJG and recorded as a Regulatory Asset on the consolidated balance sheets, where it remained recorded as of December 31, 2020 and 2019 (see Note 11). These costs include severances, curtailments and special termination benefits on the Company's pension, SERP and OPEB plans. All employees who accepted the ERIP retired in 2019 or 2020.