PENSION AND OTHER POSTRETIREMENT BENEFITS

3 Months Ended

Mar. 31, 2013

Compensation and Retirement Disclosure [Abstract]

PENSION AND OTHER POSTRETIREMENT BENEFITS

PENSION AND OTHER POSTRETIREMENT BENEFITS:

For the three months ended  March 31, 2013 and 2012, 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
	Three Months Ended March 31,
	2013			2012
Service Cost	$	1,047		$	898
Interest Cost	1,772			1,813
Expected Return on Plan Assets	(2,271		)	(2,085		)
Amortizations:
Prior Service Cost	48			47
Actuarial Loss	1,649			1,326
Net Periodic Benefit Cost	2,245			1,999
Capitalized Benefit Costs	(1,167		)	(980		)
Total Net Periodic Benefit Expense	$	1,078		$	1,019

	Other Postretirement Benefits
	Three Months Ended March 31,
	2013			2012
Service Cost	$	238		$	223
Interest Cost	535			583
Expected Return on Plan Assets	(449		)	(424		)
Amortizations:
Prior Service Credits	(54		)	(54		)
Actuarial Loss	351			289
Net Periodic Benefit Cost	621			617
Capitalized Benefit Costs	(322		)	(302		)
Total Net Periodic Benefit Expense	$	299		$	315

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

SJG contributed $9.1 million and $19.8 million to the pension plans in January 2013 and 2012, respectively. No additional contributions are expected to be made to the pension plans during 2013. Payments related to the unfunded Supplemental Executive Retirement Plan (SERP) are expected to approximate $1.2 million in 2013. 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, 2012 for additional information related to SJG’s pension and other postretirement benefits.