PENSION AND OTHER POSTRETIREMENT BENEFITS

3 Months Ended

Mar. 31, 2021

Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract]

PENSION AND OTHER POSTRETIREMENT BENEFITS

PENSION AND OTHER POSTRETIREMENT BENEFITS:

For the three months ended March 31, 2021 and 2020, net periodic benefit cost related to the SJI employee and officer pension and other postretirement benefit plans consisted of the following components (in thousands):

	Pension Benefits
	Three Months Ended March 31,
	2021		2020
Service Cost	$	1,591	$	1,688
Interest Cost	3,236		3,763
Expected Return on Plan Assets	(5,834)		(5,452)
Amortizations:
Prior Service Cost	25		26
Actuarial Loss	3,194		2,715
Net Periodic Benefit Cost	2,212		2,740
Capitalized Benefit Cost	(566)		(544)
Deferred Benefit Cost	(316)		(408)
Total Net Periodic Benefit Expense	$	1,330	$	1,788

	Other Postretirement Benefits
	Three Months Ended March 31,
	2021		2020
Service Cost	$	212	$	165
Interest Cost	475		608
Expected Return on Plan Assets	(1,436)		(1,346)
Amortizations:
Prior Service Cost	(156)		(144)
Actuarial Loss	273		192
Net Periodic Benefit Cost	(632)		(525)
Capitalized Benefit Cost	(106)		(108)
Deferred Benefit Cost	337		396
Total Net Periodic Benefit Expense	$	(401)	$	(237)

The Pension Benefits Net Periodic Benefit Cost incurred by SJG was approximately $1.6 million and $1.9 million of the totals presented in the table above for the three months ended March 31, 2021 and 2020, respectively. The weighted average expected long term rate of return on plan assets used to determine the net benefit cost was 7.25%.

The Other Postretirement Benefits Net Periodic Benefit Cost incurred by SJG was approximately $(0.5) million and $0.7 million of the totals presented in the table above for the three months ended March 31, 2021 and 2020, respectively. The weighted average expected long term rate of return on plan assets used to determine the net benefit cost was 6.75%.

Capitalized benefit costs reflected in the table above relate to the Utilities' construction programs.

No contributions were made to the pension plans by either SJI or SJG during the three months ended March 31, 2021 or 2020. Future pension contributions by SJI cannot be determined at this time. Payments related to the unfunded SERP for SJG are expected to be approximately $3.7 million in 2021.

See Note 12 to the Consolidated Financial Statements in Item 8 of SJI’s and SJG's Annual Report on Form 10-K for the year ended December 31, 2020 for additional information related to SJI’s and SJG's pension and other postretirement benefits.