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PENSION AND OTHER POSTRETIREMENT BENEFITS (Tables)

12 Months Ended

Dec. 31, 2021

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)

Activity Within Regulatory Assets and Accumulated Other Comprehensive Income (Loss)

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	$	—

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 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

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 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	$	—

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 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	$	—	$	—

Schedule of Weighted-Average Assumptions Used

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	%

Fair Value of Plan Assets

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.

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.

(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.

Schedule of Effect of Significant Unobservable Inputs, Changes in Plan Assets


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	$	—	$	—	$	—	$	—

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 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