PENSION AND OTHER POSTRETIREMENT BENEFITS

6 Months Ended

Jun. 30, 2012

Compensation and Retirement Disclosure [Abstract]

PENSION AND OTHER POSTRETIREMENT BENEFITS

PENSION AND OTHER POSTRETIREMENT BENEFITS:

For the three and six months ended  June 30, 2012 and 2011, net periodic benefit cost related to the employee and officer pension and other postretirement benefit plans consisted of the following components (in thousands):

	Pension Benefits						Pension Benefits
	Three Months Ended June 30,						Six Months Ended June 30,
	2012			2011			2012			2011
Service Cost	$	848		$	696		$	1,746		$	1,481
Interest Cost	1,893			1,775			3,706			3,601
Expected Return on Plan Assets	(1,897		)	(1,726		)	(3,983		)	(3,541		)
Amortizations:
Prior Service Cost	49			48			97			100
Actuarial Loss	1,612			1,048			2,938			2,057
Net Periodic Benefit Cost	2,505			1,841			4,504			3,698
Capitalized Benefit Costs	(1,228		)	(902		)	(2,207		)	(1,812		)
Total Net Periodic Benefit Expense	$	1,277		$	939		$	2,297		$	1,886

	Other Postretirement Benefits						Other Postretirement Benefits
	Three Months Ended June 30,						Six Months Ended June 30,
	2012			2011			2012			2011
Service Cost	$	173		$	164		$	396		$	379
Interest Cost	563			597			1,146			1,216
Expected Return on Plan Assets	(380		)	(408		)	(804		)	(854		)
Amortizations:
Prior Service Credits	(54		)	(64		)	(109		)	(135		)
Actuarial Loss	370			316			659			628
Net Periodic Benefit Cost	672			605			1,288			1,234
Capitalized Benefit Costs	(329		)	(297		)	(631		)	(605		)
Total Net Periodic Benefit Expense	$	343		$	308		$	657		$	629

Capitalized benefit costs reflected in the table above relate to our construction program.

SJG contributed $19.8 million to the pension plans in January 2012. No contributions were made to the pension plans during the six-month period ending June 30, 2011.  Payments related to the unfunded Supplemental Executive Retirement Plan are expected to approximate $1.2 million in 2012. We also have a regulatory obligation to contribute approximately $3.6 million annually to the other postretirement benefit plans’ trusts, less direct costs incurred.

See Note 11 to the Financial Statements in Item 8 of SJG’s Form 10-K as of December 31, 2011 for additional information related to SJG’s pension and other postretirement benefits.