PENSION AND OTHER POSTRETIREMENT BENEFITS (Tables)

12 Months Ended

Dec. 31, 2013

Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]

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									Other Postretirement Benefits
	2013			2012			2011			2013			2012			2011
Service Cost	$	4,487		$	3,718		$	3,048		$	771		$	704		$	675
Interest Cost	7,886			8,008			7,828			2,221			2,443			2,621
Expected Return on Plan Assets	(9,435		)	(8,249		)	(7,415		)	(2,158		)	(1,910		)	(2,040		)
Amortization:
Prior Service Cost (Credits)	208			207			219			(195		)	(195		)	(254		)
Actuarial Loss	7,608			6,432			4,561			1,555			1,534			1,466
Net Periodic Benefit Cost	10,754			10,116			8,241			2,194			2,576			2,468
Capitalized Benefit Costs	(5,002		)	(4,684		)	(3,661		)	(1,172		)	(1,340		)	(1,222		)
Affiliate SERP Allocations	(1,389		)	(1,107		)	(845		)	—			—			—
Total Net Periodic Benefit Expense	$	4,363		$	4,325		$	3,735		$	1,022		$	1,236		$	1,246

Schedule Defined Benefit Plans, Changes in Regulatory Assets and Accumulated Other Comprehensive Income (Loss)

Details of the activity within the Regulatory Asset and Accumulated Other Comprehensive Loss associated with Pension and Other Postretirement Benefits are as follows (in thousands):



	Regulatory Assets						Accumulated Other Comprehensive Loss (pre-tax)
	Pension Benefits			Other Postretirement Benefits			Pension Benefits			Other Postretirement Benefits
Balance at January 1, 2012	$	61,811		$	26,435		$	19,061		$	—
Amounts Arising during the Period:
Net Actuarial Loss	11,599			2,089			4,788			—
Amounts Amortized to Net Periodic Costs:
Net Actuarial Loss	(4,490		)	(1,535		)	(1,941		)	—
Prior Service (Cost) Credit	(207		)	195			—			—
Balance at December 31, 2012	68,713			27,184			21,908			—
Amounts Arising during the Period:
Net Actuarial Gain	(20,554		)	(9,171		)	(1,576		)	—
Amounts Amortized to Net Periodic Costs:
Net Actuarial Loss	(5,319		)	(1,555		)	(2,289		)	—
Prior Service (Cost) Credit	(208		)	194			—			—
Balance at December 31, 2013	$	42,632		$	16,652		$	18,043		$	—

Schedule of Amounts in Regulatory Assets to be Recognized over Next Fiscal Year

The estimated costs that will be amortized from Regulatory Assets into net periodic benefit costs in 2014 are as follows (in thousands):



	Pension Benefits		Other Postretirement Benefits
Prior Service Costs	$	158	$	133
Net Actuarial Loss	$	2,856	$	790

Schedule of Amounts in Accumulated Other Comprehensive Income (Loss) to be Recognized over Next Fiscal Year

The estimated costs that will be amortized from Accumulated Other Comprehensive Loss into net periodic benefit costs in 2014 are as follows (in thousands):



	Pension Benefits		Other Postretirement Benefits
Net Actuarial Loss	$	2,007	$	—

Schedule of Net Funded Status and Amounts Recognized in Balance Sheet

A reconciliation of the plans’ benefit obligations, fair value of plan assets, funded status and amounts recognized in our balance sheets follows (in thousands):



							Other
	Pension Benefits						Postretirement Benefits
	2013			2012			2013			2012
Change in Benefit Obligations:
Benefit Obligation at Beginning of Year	$	186,899		$	160,319		$	55,615		$	51,656
Service Cost	4,487			3,718			771			704
Interest Cost	7,886			8,008			2,221			2,443
Actuarial (Gain) Loss	(11,514		)	21,990			(4,552		)	4,059
Retiree Contributions	—			—			335			313
Plan Amendments	—			—			—			—
Benefits Paid	(7,090		)	(7,136		)	(3,475		)	(3,560		)
Benefit Obligation at End of Year	$	180,668		$	186,899		$	50,915		$	55,615
Change in Plan Assets:
Fair Value of Plan Assets at Beginning of Year	$	119,391		$	91,738		$	32,694		$	28,942
Actual Return on Plan Assets	20,049			13,853			5,101			3,880
Employer Contributions	10,324			20,936			4,816			3,119
Retiree Contributions	—			—			335			313
Benefits Paid	(7,090		)	(7,136		)	(3,475		)	(3,560		)
Fair Value of Plan Assets at End of Year	$	142,674		$	119,391		$	39,471		$	32,694



Funded Status at End of Year:
Accrued Net Benefit Cost at End of Year	$	(37,994	)	$	(67,508	)	$	(11,444	)	$	(22,921	)
Amounts Recognized in the Statement of Financial Position Consist of:
Current Liabilities	$	(1,241	)	$	(1,236	)	$	—		$	—
Noncurrent Liabilities	(36,753		)	(66,272		)	(11,444		)	(22,921		)
Net Amount Recognized at End of Year	$	(37,994	)	$	(67,508	)	$	(11,444	)	$	(22,921	)
Amounts Recognized in Regulatory Assets Consist of:
Prior Service Costs	$	634		$	842		$	952		$	758
Net Actuarial Loss	41,998			67,871			15,700			26,426
Net Amount Recognized at End of Year	$	42,632		$	68,713		$	16,652		$	27,184
Amounts Recognized in Accumulated Other Comprehensive Loss Consist of:
Net Actuarial Loss	$	18,043		$	21,908		$	—		$	—

Schedule of Assumptions Used

The weighted-average assumptions used to determine benefit obligations at December 31 were:



	Pension Benefits				Other Postretirement Benefits
	2013		2012		2013		2012
Discount Rate	5.09	%	4.26	%	4.91	%	4.14	%
Rate of Compensation Increase	3.50	%	3.25	%	3.50	%	3.25	%

The weighted-average assumptions used to determine net periodic benefit cost for years ended December 31 were:



	Pension Benefits						Other Postretirement Benefits
	2013		2012		2011		2013		2012		2011
Discount Rate	4.26	%	5.03	%	5.78	%	4.14	%	4.92	%	5.55	%
Expected Long-Term Return on Plan Assets	7.50	%	7.50	%	8.00	%	6.60	%	6.60	%	7.00	%
Rate of Compensation Increase	3.25	%	3.25	%	3.25	%	3.25	%	3.25	%	3.25	%

Schedule of Health Care Cost Trend Rates

The assumed health care cost trend rates at December 31 were:



	2013		2012
Medical Care and Drug Cost Trend Rate Assumed for Next Year	7.00	%	7.00	%
Dental Care Cost Trend Rate Assumed for Next Year	4.75	%	4.75	%
Rate to which Cost Trend Rates are Assumed to Decline (the Ultimate Trend Rate)	4.75	%	4.75	%
Year that the Rate Reaches the Ultimate Trend Rate	2023		2019

Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates

A one-percentage-point change in assumed health care cost trend rates would have the following effects (in thousands):



	1-Percentage- Point Increase		1-Percentage- Point Decrease
Effect on the Total of Service and Interest Cost	$	145	$	(115	)
Effect on Postretirement Benefit Obligation	$	2,406	$	(2,027	)

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

Fair Value Measurement Using Significant

Unobservable Inputs (Level 3)

(In thousands)



	Guaranteed Insurance Contract			Hedge Funds		Private Equity Funds			Real Estate		Total
Balance at January 1, 2012	$	9,647		$	—	$	2,525		$	4,291	$	16,463
Actual return on plan assets:
Relating to assets still held at the reporting date	1,082			—		(122		)	487		1,447
Relating to assets sold during the period	(10		)	—		480			—		470
Purchases, Sales and Settlements	(821		)	—		(326		)	—		(1,147		)
Balance at December 31, 2012	$	9,898		$	—	$	2,557		$	4,778	$	17,233
Actual return on plan assets:
Relating to assets still held at the reporting date	(68		)	124		80			623		759
Relating to assets sold during the period	14			—		345			—		359
Purchases, Sales and Settlements	(773		)	3,204		(542		)	—		1,889
Balance at December 31, 2013	$	9,071		$	3,328	$	2,440		$	5,401	$	20,240

Schedule of Expected Benefit Payments

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):



	Pension Benefits		Other Postretirement Benefits
2014	$	7,770	$	3,725
2015	$	8,303	$	3,825
2016	$	8,646	$	3,906
2017	$	9,021	$	3,955
2018	$	10,316	$	3,997
2019 - 2023	$	61,659	$	21,093

Pension Benefits [Member]

Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]

Schedule of Allocation of Plan Assets

The fair values of SJG’s pension plan assets at December 31, 2013 and 2012 by asset category are as follows (in thousands):



Asset Category	Total		Level 1		Level 2		Level 3
As of December 31, 2013:
Cash / Cash Equivalents:
Common/Collective Trust Funds (a)	$	334	$	—	$	334	$	—
STIF-Type Instrument (b)	943		—		943		—
Equity securities:
Common/Collective Trust Funds – U.S. (a)	41,527		—		41,527		—
Common/Collective Trust Funds – International (a)	27,312		—		27,312		—
U.S. Large-Cap (c)	9,342		9,342		—		—
U.S. Mid-Cap (c)	3,313		3,313		—		—
International (c)	2,935		2,935		—		—
Fixed Income:
Common/Collective Trust Funds (a)	36,728		—		36,728		—
Guaranteed Insurance Contract (d)	9,071		—		—		9,071
Hedge Funds (e)	3,328		—		—		3,328
Other types of investments:
Private Equity Fund (f)	2,440		—		—		2,440
Common/Collective Trust Fund – Real Estate (g)	5,401		—		—		5,401
Total	$	142,674	$	15,590	$	106,844	$	20,240



Asset Category	Total		Level 1		Level 2		Level 3
As of December 31, 2012:
Cash / Cash Equivalents:
Common/Collective Trust Funds (a)	$	477	$	—	$	477	$	—
STIF-Type Instrument (b)	840		—		840		—
Equity securities:
Common/Collective Trust Funds – U.S. (a)	33,690		—		33,690		—
Common/Collective Trust Funds – International (a)	23,448		—		23,448		—
U.S. Large-Cap (c)	7,126		7,126		—		—
U.S. Mid-Cap (c)	4,194		4,194		—		—
U.S. Small-Cap (c)	8		8		—		—
International (c)	1,462		1,462		—		—
Fixed Income:
Common/Collective Trust Funds (a)	30,913		—		30,913		—
Guaranteed Insurance Contract (d)	9,898		—		—		9,898
Other types of investments:
Private Equity Fund (f)	2,557		—		—		2,557
Common/Collective Trust Fund – Real Estate (g)	4,778		—		—		4,778
Total	$	119,391	$	12,790	$	89,368	$	17,233

(a)

This category represents common/collective trust fund investments through a commingled employee benefit trust (excluding real estate). These commingled funds are not traded publicly; however, the majority of the underlying assets held in these funds are stocks and bonds that are traded on active markets and prices for these assets are readily observable. Also included in these funds are interest rate swaps, asset backed securities, mortgage backed securities and other investments with observable market values. Holdings in these commingled funds are classified as Level 2 investments.

(b)

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, or where quoted prices are not available, based on models using observable market information. Since not all values can be obtained from quoted prices in active markets, these funds are classified as Level 2 investments.


(c)	This category of equity investments represents a managed portfolio of common stock investments in five sectors: telecommunications, electric utilities, gas utilities, water and energy. 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.

(d)

This category represents SJI’s Group Annuity contracts with a nationally recognized life insurance company. The contracts are the assets of the plan, while the underlying assets of the contracts are owned by the contract holder. Valuation is based on a formula and calculation specified within the contract. Since the valuation is based on the reporting entity’s own assumptions, these contracts are classified as Level 3 investments.


(e)	This category represents a collection of underlying funds which are all domiciled outside of the United States. All of the underlying fund managers are based in the U.S.; however, they do not necessarily trade only in the U.S. markets. The fair value of these funds is determined by the underlying fund's general partner or manager. These funds are classified as Level 3 investments.

(f)

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 day lag and, therefore, the value reported herein represents the market value as of September 30, 2013 and 2012, respectively. 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. Fund investments are illiquid and resale is restricted. These funds are classified as Level 3 investments.

(g)

This category represents real estate common/collective trust fund investments through a commingled employee benefit trust. These commingled funds are part of a direct investment in a pool of real estate properties. These funds are valued by investment managers on a periodic basis using pricing models that use independent appraisals from sources with professional qualifications. Since these valuation inputs are not highly observable, the real estate funds are classified as Level 2 investments.