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PENSION AND OTHER POSTRETIREMENT BENEFITS (Tables)
 12 Months Ended
Dec. 31, 2020
Retirement Benefits [Abstract]  
Schedule of Net Periodic Benefit Costs
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
 202020192018
Service Cost$5,871 $5,583 $6,442 
Interest Cost15,017 17,294 13,778 
Expected Return on Plan Assets(21,929)(20,195)(18,672)
Amortizations:   
Prior Service Cost105 105 116 
Actuarial Loss10,845 9,550 11,528 
Net Periodic Benefit Cost9,909 12,337 13,192 
Settlement, Curtailment and Special Termination Costs781 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
 202020192018
Service Cost$681 $533 $945 
Interest Cost2,367 2,884 2,430 
Expected Return on Plan Assets(5,381)(4,571)(4,286)
Amortizations:   
Prior Service Credits(624)(561)(344)
Actuarial Loss853 1,163 903 
Net Periodic Benefit (Credit) Cost(2,104)(552)(352)
Settlement, Curtailment and Special Termination Costs— — 1,286 
Capitalized Benefit Costs(209)(201)(290)
Deferred Benefit Costs935 357 580 
Total Net Periodic Benefit (Income) Expense$(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
202020192018
Service Cost$3,797 $3,621 $5,073 
Interest Cost9,695 11,067 10,010 
Expected Return on Plan Assets(11,903)(11,028)(12,513)
Amortization:
Prior Service Cost95 95 112 
Actuarial Loss9,364 8,224 10,074 
Net Periodic Benefit Cost11,048 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
202020192018
Service Cost$396 $343 $583 
Interest Cost1,463 1,863 1,698 
Expected Return on Plan Assets(3,860)(3,220)(3,449)
Amortization:
Prior Service Credits(502)(474)(257)
Actuarial Loss672 1,042 695 
Net Periodic Benefit Credits(1,831)(446)(730)
Capitalized Benefit Costs(166)(155)(257)
Deferred Benefit Costs935 357 580 
Total Net Periodic Benefit Income$(1,062)$(244)$(407)
Activity Within Regulatory Assets and Accumulated Other Comprehensive Income (Loss)
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 BenefitsOther Postretirement BenefitsPension BenefitsOther 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, 201961,584 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 AssetsAccumulated Other Comprehensive Loss (pre-tax)
Pension BenefitsOther Postretirement BenefitsPension BenefitsOther 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, 201960,668 11,342 42,190 — 
 
Amounts Arising during the Period:
   Net Actuarial Gain10,595 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 $— 
Estimated Costs That Will be Amortized from Regulatory Assets into Net Periodic Costs
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 BenefitsOther Postretirement Benefits
Prior Service Cost/(Credit)$88 $(502)
Net Actuarial Loss$5,864 $854 
Estimated Costs That Will be Amortized from Accumulated Other Comprehensive Income (Loss) into Net Periodic Benefit Costs
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 BenefitsOther 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 $— 
Reconciliation of the Plans' Benefit Obligations, Fair Value of Plan Assets and Funded Status
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 BenefitsOther Postretirement Benefits
 
 2020201920202019
Change in Benefit Obligations:
Benefit Obligation at Beginning of Year$439,373 $402,156 $73,659 $69,511 
   Service Cost5,871 5,583 681 533 
   Interest Cost15,017 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 Assets41,344 51,812 5,348 11,990 
   Employer Contributions3,875 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 Loss72,332 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 Loss57,467 51,253 4,597 2,583 
 $57,489 $51,285 $2,768 $964 
 
SJG:Other
Pension BenefitsPostretirement Benefits
2020 20192020 2019
Change in Benefit Obligations:
Benefit Obligation at Beginning of Year$286,517 $264,823 $47,306 $44,882 
Service Cost3,797 3,621 396 343 
Interest Cost9,695 11,067 1,463 1,863 
Actuarial Loss (Gain)27,561 24,020 (167)3,481 
Retiree Contributions— — 13 6 
Plan Amendments3,464 — (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 Assets19,914 23,760 2,679 9,419 
Employer Contributions3,840 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 Loss65,479 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 $— $— 
Schedule of Weighted-Average Assumptions Used
The weighted-average assumptions used to determine benefit obligations for SJI and SJG at December 31 were:
  Pension BenefitsOther Postretirement Benefits
 2020201920202019
Discount Rate2.73 %3.49 %2.61 %3.43 %
Rate of Compensation Increase3.00 %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 BenefitsOther Postretirement Benefits
 202020192018202020192018
Discount Rate3.49 %4.39 %3.73 %3.43 %4.31 %4.13 %
Expected Long-Term Return on Plan Assets7.25 %7.25 %7.25 %6.75 %6.75 %6.75 %
Rate of Compensation Increase3.00 %3.50 %3.50 %3.00 %3.50 %3.50 %
Fair Value of Plan Assets
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 CategoryTotalLevel 1Level 2Level 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 CategoryTotalLevel 1Level 2Level 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 CategoryTotalLevel 1Level 2Level 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 CategoryTotalLevel 1Level 2Level 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.
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 CategoryTotalLevel 1Level 2Level 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 CategoryTotalLevel 1Level 2Level 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 CategoryTotalLevel 1Level 2Level 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 CategoryTotalLevel 1Level 2Level 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.
Schedule of Effect of Significant Unobservable Inputs, Changes in Plan Assets
SJI (includes SJG and all other consolidated subsidiaries):GuaranteedPrivate  
 InsuranceEquityReal 
 ContractFundsEstateTotal
Balance at January 1, 2019$8,453 $— $— $8,453 
   Actual return on plan assets:
      Relating to assets still held at the reporting date144 — — 144 
      Relating to assets sold during the period226 — — 226 
   Purchases, Sales and Settlements(6,067)— — (6,067)
Balance at December 31, 20192,756 — — 2,756 
   Actual return on plan assets:
      Relating to assets still held at the reporting date— — — — 
      Relating to assets sold during the period— — — — 
   Purchases, Sales and Settlements(2,756)— — (2,756)
Balance at December 31, 2020$— $— $— $— 


SJG:
Guaranteed
Insurance
Contract
Private
Equity
Funds		Real
Estate		Total
Balance at January 1, 2019$6,947 $— $— $6,947 
Actual return on plan assets:   
Relating to assets still held at the reporting date(34)— — (34)
Relating to assets sold during the period182 — — 182 
Purchases, Sales and Settlements(4,879)— — (4,879)
Balance at December 31, 20192,216 — — 2,216 
Actual return on plan assets:   
Relating to assets still held at the reporting date— — — — 
Relating to assets sold during the period— — — — 
Purchases, Sales and Settlements(2,216)— — (2,216)
Balance at December 31, 2020$— $— $— $— 
Schedule of 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 BenefitsOther 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