PENSION AND OTHER POSTRETIREMENT BENEFITS

12 Months Ended

Dec. 31, 2021

Retirement Benefits [Abstract]

PENSION AND OTHER POSTRETIREMENT BENEFITS

PENSION AND OTHER POSTRETIREMENT BENEFITS:SJI ans ETG sponsor several trusteed, qualified defined benefit pension plans and other postretirement benefit plans. Employees of SJG participate in the defined benefit pension plans and other postretirement benefit plans of SJI. SJI's qualified defined benefit pension plan was closed beginning in 2003. ETG's defined benefit pension plan was closed to new employees beginning in 2018. SJI's and ETG's plans are funded in accordance with the requirements of the ERISA. In addition, non-union employees are eligible to participate in the defined contribution plan. Approximately 30% and 28% of SJI's and SJG's current, full-time, regular employees, respectively, will be entitled to annuity payments upon retirement. The Company also provides a non-qualified benefit and defined contribution pension plan for a selected group of the Company's management and highly compensated employees. Benefits under these non-qualified pension plans, including the SERP discussed below, are funded on a cash basis. In addition, SJI and ETG provide health care and life insurance benefits for eligible retired employees through postretirement benefit plans.

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
	2021		2020		2019
Service Cost	$	5,887	$	5,871	$	5,583
Interest Cost	13,028		15,017		17,294
Expected Return on Plan Assets	(23,762)		(21,929)		(20,195)
Amortization:
Prior Service Cost	98		105		105
Actuarial Loss	12,932		10,845		9,550
Net Periodic Benefit Cost	8,183		9,909		12,337
Settlement, Curtailment and Special Termination Costs	44		781		955
Capitalized Benefit Costs	(1,551)		(1,969)		(2,008)
Deferred Benefit Costs	(1,168)		(1,591)		(2,411)
Total Net Periodic Benefit Expense	$	5,508	$	7,130	$	8,873

SJI (includes SJG and all other consolidated subsidiaries):	Other Postretirement Benefits
	2021		2020		2019
Service Cost	$	814	$	681	$	533
Interest Cost	1,920		2,367		2,884
Expected Return on Plan Assets	(5,741)		(5,381)		(4,571)
Amortization:
Prior Service Credits	(624)		(624)		(561)
Actuarial Loss	1,118		853		1,163
Net Periodic Benefit Credit	(2,513)		(2,104)		(552)
Capitalized Benefit Costs	(225)		(209)		(201)
Deferred Benefit Costs	1,164		935		357
Total Net Periodic Benefit Income	$	(1,574)	$	(1,378)	$	(396)

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
	2021		2020		2019
Service Cost	$	3,778	$	3,797	$	3,621
Interest Cost	8,481		9,695		11,067
Expected Return on Plan Assets	(13,403)		(11,903)		(11,028)
Amortization:
Prior Service Cost	88		95		95
Actuarial Loss	11,569		9,364		8,224
Net Periodic Benefit Cost	10,513		11,048		11,979
Capitalized Benefit Costs	(1,551)		(1,395)		(1,437)
Affiliate SERP Allocations	(4,728)		(3,938)		(3,541)
Deferred Benefit Costs	(1,168)		(1,591)		(2,411)
Total Net Periodic Benefit Expense	$	3,066	$	4,124	$	4,590

SJG:	Other Postretirement Benefits
	2021		2020		2019
Service Cost	$	480	$	396	$	343
Interest Cost	1,181		1,463		1,863
Expected Return on Plan Assets	(4,041)		(3,860)		(3,220)
Amortization:
Prior Service Credits	(502)		(502)		(474)
Actuarial Loss	884		672		1,042
Net Periodic Benefit Credits	(1,998)		(1,831)		(446)
Capitalized Benefit Costs	(225)		(166)		(155)
Deferred Benefit Costs	1,164		935		357
Total Net Periodic Benefit Income	$	(1,059)	$	(1,062)	$	(244)

Settlement, Curtailment and Special Termination Costs reflected in the tables above in 2021 were not material; in 2020 relate to a settlement of certain participants' benefits under ETG's pension plan; and in 2019 relate to an ERIP. 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 Regulatory Assets 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, 2020	$	61,584	$	12,251	$	51,285	$	964
Amounts Arising during the Period:
Net Actuarial Loss	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
Amounts Arising during the Period:
Net Actuarial Gain	(19,155)		(11,763)		(7,465)		(1,540)
Amounts Amortized to Net Periodic Costs:
Net Actuarial Loss	(6,187)		(884)		(6,740)		(233)
Prior Service (Credits) Cost	(88)		502		(10)		107
Balance at December 31, 2021	$	47,099	$	1,218	$	43,274	$	1,102

SJG:	Regulatory Assets				Accumulated Other Comprehensive Loss (pre-tax)
	Pension Benefits		Other Postretirement Benefits		Pension Benefits		Other Postretirement Benefits
Balance at January 1, 2020	$	60,668	$	11,342	$	42,190	$	—
Amounts Arising during the Period:
Net Actuarial Loss	10,595		1,014		9,119		—
Prior Service Credit (Cost)	—		(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		—
Amounts Arising during the Period:
Net Actuarial Gain	(14,357)		(8,951)		(3,350)		—
Other	—		—		(3,177)		—
Amounts Amortized to Net Periodic Costs:
Net Actuarial Loss	(6,144)		(884)		(5,423)		—
Prior Service (Cost) Credit	(88)		502		—		—
Balance at December 31, 2021	$	45,087	$	2,417	$	35,487	$	—

The estimated costs that will be amortized from Regulatory Assets for SJI and SJG into net periodic benefit costs in 2022 are as follows (in thousands):

SJI and SJG (amounts are the same for both entities):	Pension Benefits		Other Postretirement Benefits
Prior Service Cost/(Credit)	$	63	$	(502)
Net Actuarial Loss	$	2,839	$	100

The estimated costs that will be amortized from AOCL for SJI and SJG into net periodic benefit costs in 2022 are as follows (in thousands):

	Pension Benefits		Other Postretirement  Benefits
SJI (includes SJG and all other consolidated subsidiaries):
Prior Service Cost/(Credit)	$	7	$	(107)
Net Actuarial Loss	$	4,246	$	40
SJG:
Prior Service Cost/(Credit)	$	—	$	—
Net Actuarial Loss	$	3,278	$	—

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
	2021		2020		2021		2020
Change in Benefit Obligations:
Benefit Obligation at Beginning of Year	$	481,848	$	439,373	$	75,540	$	73,659
Service Cost	5,887		5,871		814		681
Interest Cost	13,028		15,017		1,920		2,367
Actuarial (Gain) Loss	(10,823)		48,316		(4,025)		3,933
Retiree Contributions	—		—		—		84
Plan Amendments	—		—		—		(753)
Benefits Paid	(19,193)		(19,569)		(4,309)		(4,431)
Settlement	(9,173)		(7,160)		—		—
Benefit Obligation at End of Year	$	461,574	$	481,848	$	69,940	$	75,540
Change in Plan Assets:
Fair Value of Plan Assets at Beginning of Year	$	330,987	$	312,497	$	87,870	$	82,522
Actual Return on Plan Assets	39,690		41,344		15,100		5,348
Employer Contributions	9,287		3,875		4,309		4,347
Retiree Contributions	—		—		—		84
Benefits Paid	(19,193)		(19,569)		(4,309)		(4,431)
Settlement	(9,173)		(7,160)		—		—
Fair Value of Plan Assets at End of Year	$	351,598	$	330,987	$	102,970	$	87,870
Funded Status at End of Year:	$	(109,976)	$	(150,861)	$	33,030	$	12,330
Amounts Related to Unconsolidated Affiliate	30		(495)		228		299
Accrued Net Benefit (Cost) Credit at End of Year	$	(109,946)	$	(151,356)	$	33,258	$	12,629
Amounts Recognized in the Statement of Financial Position Consist of:
Noncurrent Assets	$	—	$	—	$	33,258	$	12,629
Current Liabilities	(3,969)		(3,704)		—		—
Noncurrent Liabilities	(105,977)		(147,652)		—		—
Net Amount Recognized at End of Year	$	(109,946)	$	(151,356)	$	33,258	$	12,629
Amounts Recognized in Regulatory Assets Consist of:
Prior Service Costs (Credits)	$	109	$	197	$	(4,723)	$	(5,225)
Net Actuarial Loss	46,990		72,332		5,941		18,588
	$	47,099	$	72,529	$	1,218	$	13,363
Amounts Recognized in Accumulated Other Comprehensive Loss Consist of (pre-tax):
Prior Service Costs (Credits)	$	12	$	22	$	(1,722)	$	(1,829)
Net Actuarial Loss	43,262		57,467		2,824		4,597
	$	43,274	$	57,489	$	1,102	$	2,768

SJG:					Other
	Pension Benefits				Postretirement Benefits
	2021		2020		2021		2020
Change in Benefit Obligations:
Benefit Obligation at Beginning of Year	$	318,262	$	286,517	$	46,189	$	47,306
Service Cost	3,778		3,797		480		396
Interest Cost	8,481		9,695		1,181		1,463
Actuarial (Gain) Loss	(11,714)		27,561		(1,538)		(167)
Retiree Contributions	—		—		—		13
Plan Amendments	1,800		3,464		—		(436)
Benefits Paid	(13,261)		(12,772)		(3,496)		(2,386)
Benefit Obligation at End of Year	$	307,346	$	318,262	$	42,816	$	46,189
Change in Plan Assets:
Fair Value of Plan Assets at Beginning of Year	$	181,940	$	170,959	$	61,869	$	59,190
Actual Return on Plan Assets	19,399		19,914		11,453		2,679
Employer Contributions	8,862		3,840		3,496		2,373
Retiree Contributions	—		—		—		13
Benefits Paid	(13,261)		(12,773)		(3,496)		(2,386)
Fair Value of Plan Assets at End of Year	$	196,940	$	181,940	$	73,322	$	61,869
Funded Status at End of Year:
Accrued Net Benefit (Cost) Credit at End of Year	$	(110,406)	$	(136,322)	$	30,506	$	15,680
Amounts Recognized in the Statement of Financial Position Consist of:
Noncurrent Assets	$	—	$	—	$	30,506	$	15,680
Current Liabilities	(3,935)		(3,669)		—		—
Noncurrent Liabilities	(106,471)		(132,653)		—		—
Net Amount Recognized at End of Year	$	(110,406)	$	(136,322)	$	30,506	$	15,680
Amounts Recognized in Regulatory Assets Consist of:
Prior Service Costs (Credits)	$	109	$	197	$	(4,723)	$	(5,225)
Net Actuarial Loss	44,978		65,479		7,140		16,975
Net Amount Recognized at End of Year	$	45,087	$	65,676	$	2,417	$	11,750
Amounts Recognized in Accumulated Other Comprehensive Loss Consist of:
Net Actuarial Loss	$	35,487	$	47,437	$	—	$	—

The PBO and ABO of SJI's qualified employee pension plans were $371.9 million and $355.3 million, respectively, as of December 31, 2021; and $388.3 million and $370.2 million, respectively, as of December 31, 2020.  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 $89.7 million and $88.4 million, respectively, as of December 31, 2021; and $93.6 million and $90.6 million, respectively, as of December 31, 2020. 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 $209.6 million and $201.4 million, respectively, as of December 31, 2021; and $218.4 million and $207.8 million, respectively, as of December 31, 2020. 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 $89.7 million and $88.4 million, respectively, as of December 31, 2021; and $93.2 million and $90.2 million, respectively, as of December 31, 2020. SJG's SERP obligation is reflected in the tables above.

Actuarial gains incurred in 2021 are primarily a result of an increase in the discount rate assumptions used to estimate the benefit obligations as of December 31, 2021 compared to the prior year. Actuarial losses incurred in 2020 are primarily a result of a decrease in the discount rate assumptions used to estimate the benefit obligations as of December 31, 2020 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
	2021		2020		2021		2020
Discount Rate	3.02	%	2.73	%	2.99	%	2.61	%
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
	2021		2020		2019		2021		2020		2019
Discount Rate	2.73	%	3.49	%	4.39	%	2.61	%	3.43	%	4.31	%
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	%	3.00	%	3.50	%	3.00	%	3.00	%	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, 2021, 2020 and 2019, 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 equity securities, 0-10 percent cash, 25-60 percent fixed income investments, and 0-10 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, 2021.  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, 2021, 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, 2021 and 2020 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, 2021
Cash / Cash Equivalents:
Cash	$	1,299	$	1,299	$	—	$	—
STIF-Type Instrument (a)	6,525		6,525		—		—
Equity securities:
U.S. Large-Cap (b)	100,095		100,095		—		—
U.S. Mid-Cap (b)	14,730		14,730		—		—
U.S. Small-Cap (b)	13,639		13,639		—		—
International (b)	83,831		83,831		—		—
Fixed Income:
Core Plus Fixed Income (c)	49,510		24,363		25,147		—
Short Term Fixed (c)	27,039		27,039		—		—
Long Term Fixed (c)	41,875		41,875		—		—
Subtotal Fair Value	$	338,543	$	313,396	$	25,147	$	—
Measured at net asset value practical expedient:
Private Equity Fund (d)	$	13,055
Subtotal measured at net asset value practical expedient	$	13,055
Total Fair Value	$	351,598

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 (c)	54,066		27,296		26,770		—
Long Term Fixed (c)	41,194		41,194		—		—
Subtotal Fair Value	$	321,039	$	294,269	$	26,770	$	—
Measured at net asset value practical expedient:
Private Equity Fund (d)	$	9,948
Subtotal measured at net asset value practical expedient	$	9,948
Total Fair Value	$	330,987

SJG:
Asset Category	Total		Level 1		Level 2		Level 3
As of December 31, 2021:
Cash / Cash Equivalents:
Cash	$	213	$	213	$	—	$	—
STIF-Type Instrument (a)	4,976		4,976		—		—
Equity securities:
U.S. Large-Cap (b)	54,651		54,651		—		—
U.S. Mid-Cap (b)	7,632		7,632		—		—
U.S. Small-Cap (b)	7,580		7,580		—		—
International (b)	45,634		45,634		—		—
Fixed Income:
Core Plus Fixed Income (c)	27,592		13,578		14,014		—
Short Term Fixed (c)	14,931		14,931		—		—
Long Term Fixed (c)	23,396		23,396		—		—
Subtotal Fair Value	$	186,605	$	172,591	$	14,014	$	—
Measured at net asset value practical expedient:
Private Equity Fund (d)	$	10,335
Subtotal measured at net asset value practical expedient	$	10,335
Total Fair Value	$	196,940

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 (c)	32,571		16,450		16,121		—
Long Term Fixed (c)	24,895		24,895		—		—
Subtotal Fair Value	$	174,002	$	157,881	$	16,121	$	—
Measured at net asset value practical expedient:
Private Equity Fund (d)	$	7,938
Subtotal measured at net asset value practical expedient	$	7,938
Total Fair Value	$	181,940

(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 among several sectors. 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 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)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, 2021 and 2020, 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.

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, 2020	$	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	—		—		—		—
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	—		—		—		—
Balance at December 31, 2021	$	—	$	—	$	—	$	—

SJG:	Guaranteed Insurance Contract		Private Equity Funds		Real Estate		Total
Balance at January 1, 2020	$	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	—		—		—		—
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	—		—		—		—
Balance at December 31, 2021	$	—	$	—	$	—	$	—

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 equity securities, 0-10 percent cash, 25-45 percent fixed income investments and 0-10 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, 2021 and 2020 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, 2021:
Cash / Cash Equivalents:
Cash	$	292	$	292	$	—	$	—
STIF-Type Instrument (d)	2,780		2,780		—		—
Equity Securities:
U.S. Large-Cap (a)	21,012		21,012		—		—
U.S. Mid-Cap (a)	4,292		4,292		—		—
U.S. Small-Cap (a)	7,380		7,380		—		—
U.S. International (a)	21,079		21,079		—		—
Fixed Income:
Core Plus Fixed Income (c)	14,958		7,243		7,715		—
Mutual Funds - Bonds (a)	12,724		12,724		—		—
Subtotal Fair Value	$	84,517	$	76,802	$	7,715	$	—
Measured at net asset value practical expedient:
Company Owned Life Insurance (b)	$	18,453
Subtotal measured at net asset value practical expedient	$	18,453
Total Fair Value	$	102,970
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		0		0
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

SJG:
Asset Category	Total		Level 1		Level 2		Level 3
As of December 31, 2021
Cash / Cash Equivalents:
Cash	$	170	$	170	$	—	$	—
STIF-Type Instrument (d)	2,616		2,616		0		0
Equity Securities:
U.S. Large-Cap (a)	16,101		16,101		—		—
U.S. Mid-Cap (a)	2,652		2,652		—		—
U.S. Small-Cap (a)	2,115		2,115		—		—
U.S. International (a)	13,392		13,392		—		—
Fixed Income:
Core Plus Fixed Income (c)	10,273		5,055		5,218		—
Mutual Funds - Bonds (a)	8,603		8,603		—		—
Subtotal Fair Value	$	55,922	$	50,704	$	5,218	$	—
Measured at net asset value practical expedient:
Company Owned Life Insurance (b)	$17,400
Subtotal measured at net asset value practical expedient	$17,400
Total Fair Value	$	73,322
SJG:
Asset Category	Total		Level 1		Level 2		Level 3
As of December 31, 2020
Cash	$	2,083	$	2,083	$	0	$	0
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

(a)This category represents a managed portfolio of common stock investments among several sectors. 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)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.

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
2022	$	22,834	$	5,451
2023	$	23,550	$	5,271
2024	$	23,795	$	4,932
2025	$	24,008	$	4,696
2026	$	24,618	$	4,448
2027 - 2031	$	130,850	$	18,642

SJG:	Pension Benefits		Other Postretirement Benefits
2022	$	14,143	$	3,591
2023	$	14,658	$	3,500
2024	$	15,022	$	3,285
2025	$	15,398	$	3,100
2026	$	15,792	$	2,926
2027 - 2031	$	86,896	$	11,931

CONTRIBUTIONS - SJI and SJG made $5.4 million and $5.0 million contributions to its employee pension and OPEB plans in 2021, respectively. SJI and SJG did not make contributions to its employee pension or OPEB plans in 2020 or 2019. Payments related to the unfunded SERP plan for SJI and SJG in 2021, 2020 and 2019 were $3.9 million, $3.9 million and $4.1 million, respectively. SERP payments for SJI and SJG are expected to approximate $3.9 million in 2022.

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 $4.0 million, $4.6 million and $3.4 million for the years ended December 31, 2021, 2020 and 2019, respectively, and $1.2 million, $1.6 million and $1.2 million for SJG for the years ended December 31, 2021, 2020 and 2019, respectively.