PENSION AND OTHER POSTRETIREMENT BENEFITS

3 Months Ended

Mar. 31, 2014

Compensation and Retirement Disclosure [Abstract]

PENSION AND OTHER POSTRETIREMENT BENEFITS

PENSION AND OTHER POSTRETIREMENT BENEFITS:

For the three months ended  March 31, 2014 and 2013, 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,
	2014			2013
Service Cost	$	966		$	1,047
Interest Cost	2,027			1,772
Expected Return on Plan Assets	(2,455		)	(2,271		)
Amortizations:
Prior Service Cost	33			48
Actuarial Loss	1,072			1,649
Net Periodic Benefit Cost	1,643			2,245
Capitalized Benefit Costs	(854		)	(1,167		)
Total Net Periodic Benefit Expense	$	789		$	1,078

	Other Postretirement Benefits
	Three Months Ended March 31,
	2014			2013
Service Cost	$	172		$	238
Interest Cost	510			535
Expected Return on Plan Assets	(473		)	(449		)
Amortizations:
Prior Service Cost (Credits)	26			(54		)
Actuarial Loss	167			351
Net Periodic Benefit Cost	402			621
Capitalized Benefit Costs	(209		)	(322		)
Total Net Periodic Benefit Expense	$	193		$	299

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

SJG contributed $9.1 million to the pension plans in January 2013. No contributions are expected to be made to the pension plans during 2014. Payments related to the unfunded Supplemental Executive Retirement Plan (SERP) are expected to approximate $1.2 million in 2014. 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, 2013 for additional information related to SJG’s pension and other postretirement benefits.