PENSION AND OTHER POSTRETIREMENT BENEFITS

9 Months Ended

Sep. 30, 2012

Compensation and Retirement Disclosure [Abstract]

PENSION AND OTHER POSTRETIREMENT BENEFITS

PENSION AND OTHER POSTRETIREMENT BENEFITS:

For the three and nine months ended  September 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 September 30,						Nine Months Ended September 30,
	2012			2011			2012			2011
Service Cost	$	873		$	741		$	2,619		$	2,222
Interest Cost	1,853			1,800			5,559			5,401
Expected Return on Plan Assets	(1,991		)	(1,771		)	(5,974		)	(5,312		)
Amortizations:
Prior Service Cost	48			51			145			151
Actuarial Loss	1,469			1,028			4,407			3,085
Net Periodic Benefit Cost	2,252			1,849			6,756			5,547
Capitalized Benefit Costs	(1,306		)	(906		)	(3,513		)	(2,718		)
Total Net Periodic Benefit Expense	$	946		$	943		$	3,243		$	2,829

	Other Postretirement Benefits						Other Postretirement Benefits
	Three Months Ended September 30,						Nine Months Ended September 30,
	2012			2011			2012			2011
Service Cost	$	198		$	189		$	594		$	568
Interest Cost	573			608			1,719			1,824
Expected Return on Plan Assets	(402		)	(427		)	(1,206		)	(1,281		)
Amortizations:
Prior Service Credits	(54		)	(67		)	(162		)	(202		)
Actuarial Loss	329			314			988			942
Net Periodic Benefit Cost	644			617			1,933			1,851
Capitalized Benefit Costs	(374		)	(302		)	(1,005		)	(907		)
Total Net Periodic Benefit Expense	$	270		$	315		$	928		$	944

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 nine-month period ending September 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.