BENEFIT PLANS

Idaho Power has the following pension plans - a noncontributory defined benefit pension plan (pension plan) and two nonqualified defined benefit plans for certain senior management employees called the Security Plan for Senior Management Employees I and Security Plan for Senior Management Employees II (collectively, SMSP). Idaho Power also has a nonqualified defined benefit pension plan for directors that was frozen in 2002. Remaining vested benefits from that plan are included with the SMSP in the disclosures below. The benefits under the pension plan are based on years of service and the employee’s final average earnings. Idaho Power also maintains a defined benefit postretirement benefit plan (consisting of health care and death benefits) that covers all employees who were enrolled in the active-employee group plan at the time of retirement as well as their spouses and qualifying dependents. The following table shows the components of net periodic benefit costs for the pension, SMSP, and postretirement benefits plans for the three months ended June 30, 2016 and 2015 (in thousands of dollars).



	Pension Plan						SMSP				Postretirement Benefits
	2016			2015			2016		2015		2016			2015
Service cost	$	7,893		$	8,123		$	307	$	423	$	265		$	280
Interest cost	9,484			8,766			1,068		967		687			665
Expected return on plan assets	(10,871		)	(10,520		)	—		—		(617		)	(668		)
Amortization of prior service cost	16			55			42		46		6			4
Amortization of net loss	3,282			3,418			883		1,049		—			—
Net periodic benefit cost	9,804			9,842			2,300		2,485		341			281
Adjustments due to the effects of regulation⁽¹⁾	(5,086		)	(5,095		)	—		—		—			—
Net periodic benefit cost recognized for financial reporting⁽¹⁾	$	4,718		$	4,747		$	2,300	$	2,485	$	341		$	281

⁽¹⁾ Net periodic benefit costs for the pension plan are recognized for financial reporting based upon the authorization of each regulatory jurisdiction in which Idaho Power operates. Under IPUC order, income statement recognition of pension plan costs is deferred until costs are recovered through rates.

The table below shows the components of net periodic benefit costs for the pension, SMSP, and postretirement benefits plans for the six months ended June 30, 2016 and 2015 (in thousands of dollars).



	Pension Plan						SMSP				Postretirement Benefits
	2016			2015			2016		2015		2016			2015
Service cost	$	16,010		$	16,582		$	614	$	845	$	558		$	618
Interest cost	18,907			17,586			2,137		1,934		1,383			1,339
Expected return on plan assets	(21,041		)	(20,739		)	—		—		(1,237		)	(1,341		)
Amortization of prior service cost	29			110			84		92		13			8
Amortization of net loss	6,666			6,964			1,766		2,098		—			—
Net periodic benefit cost	20,571			20,503			4,601		4,969		717			624
Adjustments due to the effects of regulation⁽¹⁾	(11,105		)	(10,971		)	—		—		—			—
Net periodic benefit cost recognized for financial reporting⁽¹⁾	$	9,466		$	9,532		$	4,601	$	4,969	$	717		$	624

While it has no minimum contribution requirement to its defined benefit pension plan in 2016, in April 2016 Idaho Power contributed $10 million to the plan. In July 2016, Idaho Power contributed an additional $10 million to the plan. During the remainder of 2016, Idaho Power may contribute up to an additional $20 million to the plan.

Idaho Power also has an Employee Savings Plan that complies with Section 401(k) of the Internal Revenue Code and covers substantially all employees. Idaho Power matches specified percentages of employee contributions to the Employee Savings Plan.