Note 13: Employee Benefits

Pension and Other Postretirement Benefits

The Company maintains noncontributory defined benefit pension plans covering eligible employees of its regulated utility and shared services operations. Benefits under the plans are based on the employee’s years of service and compensation. The pension plans have been closed for all employees. The pension plans were closed for most employees hired on or after January 1, 2006. Union employees hired on or after January 1, 2001 had their accrued benefit frozen and will be able to receive this benefit as a lump sum upon termination or retirement. Union employees hired on or after January 1, 2001 and non-union employees hired on or after January 1, 2006 are provided with a 5.25% of base pay defined contribution plan. The Company does not participate in a multiemployer plan.

The Company’s pension funding practice is to contribute at least the greater of the minimum amount required by the Employee Retirement Income Security Act of 1974 or the normal cost. Further, the Company will consider additional contributions if needed to avoid “at risk” status and benefit restrictions under the Pension Protection Act of 2006. The Company may also consider increased contributions, based on other financial requirements and the plans’ funded position. Pension plan assets are invested in a number of actively managed and commingled funds including equity and bond funds, fixed income securities, guaranteed interest contracts with insurance companies, real estate funds and real estate investment trusts (“REITs”).

Pension expense in excess of the amount contributed to the pension plans is deferred by certain regulated subsidiaries pending future recovery in rates charged for utility services as contributions are made to the plans. (See Note 6)

The Company also has unfunded noncontributory supplemental non-qualified pension plans that provide additional retirement benefits to certain employees.

The Company maintains other postretirement benefit plans providing varying levels of medical and life insurance to eligible retirees. The retiree welfare plans are closed for union employees hired on or after January 1, 2006. The plans had previously closed for non-union employees hired on or after January 1, 2002.

The Company’s policy is to fund other postretirement benefit costs up to the amount recoverable through rates. Assets of the plans are invested in a number of actively managed commingled funds including equity and bond funds and fixed income securities.

The obligations of the pension and postretirement benefit plans are dominated by obligations for active employees. Because the timing of expected benefit payments is so far in the future, the investment strategy is to allocate a significant percentage of assets to equities, which the Company believes will provide the highest return over the long-term period. The fixed income assets are invested in intermediate and long duration debt securities and may be invested in fixed income instruments, such as futures and options, in order to better match the duration of the plan liability.

The Company periodically conducts asset liability studies to ensure the investment strategies are aligned with the profile of the plans’ obligations.

None of the Company’s securities are included in pension or other postretirement benefit plan assets.

The Company uses fair value for all classes of assets in the calculation of market-related value of plan assets.

The investment policy guidelines of the pension plan require that the fixed income portfolio has an overall weighted-average credit rating of A or better by Standard & Poor’s.

The investment policies’ objectives are focused on reducing the volatility of the plans’ funding status over a long term horizon.

The fair values and asset allocations of pension plan assets at December 31, 2014, by asset category, follow:

Asset Category	Target Allocation 2015			Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Percentage of Plan Assets at December 31, 2014
Cash		—		$	8,370	$	8,370	$	—	$	—		—
Equity securities:
U.S. large cap		24	%		342,081		342,081		—		—		24	%
U.S. small cap value		8	%		116,503		116,503		—		—		8	%
International		20	%		274,143		—		274,143		—		19	%
Fixed income securities:		40	%										41	%
U.S. Treasury and government bonds		—			140,057		121,351		18,706		—		—
Corporate bonds		—			376,939		—		376,939		—		—
Mortgage-backed securities		—			4,285		—		4,285		—		—
Long duration bond fund		—			6,555		6,555		—		—		—
Guaranteed annuity contracts		—			51,517		—		8,987		42,530		—
Real estate		6	%		84,821		—		—		84,821		6	%
REITs		2	%		22,889		—		22,889		—		2	%
Total		100	%	$	1,428,160	$	594,860	$	705,949	$	127,351		100	%

The following table presents a reconciliation of the beginning and ending balances of the fair value measurements using significant unobservable inputs (Level 3):

	Level 3
Balance, January 1, 2014	$	43,825
Actual return on assets		7,053
Purchases, issuances and settlements, net		76,473
Balance, December 31, 2014	$	127,351

The fair values and asset allocations of pension plan assets at December 31, 2013, by asset category, follow:

Asset Category	Target Allocation 2014			Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Percentage of Plan Assets at December 31, 2013
Cash		—		$	12,844	$	12,844	$	—	$	—		—
Equity securities:
U.S. large cap		24	%		455,068		455,068		—		—		33	%
U.S. small cap value		8	%		139,571		139,571		—		—		10	%
International		20	%		295,226		615		294,611		—		21	%
Fixed income securities:		40	%										35	%
U.S. Treasury and government bonds		—			81,200		76,222		4,978		—		—
Corporate bonds		—			209,500		—		209,500		—		—
Mortgage-backed securities		—			116,956		—		116,956		—		—
Long duration bond fund		—			5,177		5,177		—		—		—
Guaranteed annuity contracts		—			52,772		—		8,947		43,825		—
Real estate		6	%		—		—		—		—		—
REITs		2	%		15,307		—		15,307		—		1	%
Total		100	%	$	1,383,621	$	689,497	$	650,299	$	43,825		100	%

The following table presents a reconciliation of the beginning and ending balances of the fair value measurements using significant unobservable inputs (Level 3):

	Level 3
Balance, January 1, 2013	$	173,625
Actual return on assets		10,384
Purchases, issuances and settlements, net		(140,184	)
Balance, December 31, 2013	$	43,825

The Company’s other postretirement benefit plans are partially funded and the assets are held under various trusts. The investments and risk mitigation strategies for the plans are tailored specifically for each trust. In setting new strategic asset mixes, consideration is given to the likelihood that the selected asset allocation will effectively fund the projected plan liabilities and the risk tolerance of the Company. The Company periodically updates the long-term, strategic asset allocations and uses various analytics to determine the optimal asset allocation. Considerations include plan liability characteristics, liquidity characteristics, funding requirements, expected rates of return and the distribution of returns.

In June 2012, the Company implemented a de-risking strategy for the medical bargaining trust within the plan to minimize volatility. As part of the de-risking strategy, the Company revised the asset allocations to increase the matching characteristics of assets relative to liabilities. The initial de-risking asset allocation for the plan was 60% return-generating assets and 40% liability-driven assets. The investment strategies and policies for the plan reflect a balance of liability driven and return-generating considerations. The objective of minimizing the volatility of assets relative to liabilities is addressed primarily through asset—liability matching, asset diversification and hedging. The fixed income target asset allocation matches the bond-like and long-dated nature of the postretirement liabilities. Assets are broadly diversified within asset classes to achieve risk-adjusted returns that in total lower asset volatility relative to the liabilities. The Company assesses the investment strategy regularly to ensure actual allocations are in line with target allocations as appropriate. Strategies to address the goal of ensuring sufficient assets to pay benefits include target allocations to a broad array of asset classes and, within asset classes strategies are employed to provide adequate returns, diversification and liquidity.

The assets of the Company’s other trusts, within the other postretirement benefit plans, have been primarily invested in equities and fixed income funds. The assets under the various other postretirement benefit trusts are invested differently based on the assets and liabilities of each trust. The obligations of the other postretirement benefit plans are dominated by obligations for the medical bargaining trust. Thirty-nine percent and four percent of the total postretirement plan benefit obligations are related to the medical non-bargaining and life insurance trusts, respectively. Because expected benefit payments related to the benefit obligations are so far into the future, and the size of the medical non-bargaining and life insurance trusts’ obligations are large compared to each trusts’ assets, the investment strategy is to allocate a significant portion of the assets’ investment to equities, which the Company believes will provide the highest long-term return and improve the funding ratio.

The Company engages third party investment managers for all invested assets. Managers are not permitted to invest outside of the asset class (e.g., fixed income, equity, alternatives) or strategy for which they have been appointed. Investment management agreements and recurring performance and attribution analysis are used as tools to ensure investment managers invest solely within the investment strategy they have been provided. Futures and options may be used to adjust portfolio duration to align with a plan’s targeted investment policy.

In order to minimize asset volatility relative to the liabilities, a portion of plan assets is allocated to fixed income investments that are exposed to interest rate risk. Increases in interest rates generally will result in a decline in the value of fixed income assets while reducing the present value of the liabilities. Conversely, rate decreases will increase fixed income assets, partially offsetting the related increase in the liabilities. Within equities, risk is mitigated by constructing a portfolio that is broadly diversified by geography, market capitalization, manager mandate size, investment style and process.

Actual allocations to each asset class vary from target allocations due to periodic investment strategy updates, market value fluctuations, the length of time it takes to fully implement investment allocation, and the timing of benefit payments and contributions. The asset allocation is rebalanced on a quarterly basis, if necessary.

The fair values and asset allocations of postretirement benefit plan assets at December 31, 2014, by asset category, follow:

Asset Category	Target Allocation 2015			Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Percentage of Plan Assets at December 31, 2014
Bargain VEBA:
Cash		—		$	189	$	189	$	—		—		—
Equity securities:
U.S. large cap		9	%		34,168		34,168		—		—		9	%
U.S. small cap value		—			—		—		—		—		—
International		11	%		40,232		40,232		—		—		10	%
Fixed income securities:		80	%										81	%
U.S. Treasury securities and government bonds		—			155,087		155,087		—		—		—
Corporate bonds		—			168,317		—		168,317		—		—
Long duration bond fund		—			3,245		3,245		—		—		—
Future and option contracts (a)		—			387		387		—		—		—
Total bargain VEBA		100	%	$	401,625	$	233,308	$	168,317		—		100	%
Non-bargain VEBA:
Cash		—		$	636	$	636	$	—		—		—
Equity securities:
U.S. large cap		21	%		21,966		21,966		—		—		21	%
U.S. small cap value		21	%		21,123		21,122		1		—		21	%
International		28	%		28,611		28,611		—		—		28	%
Fixed income securities:		30	%										30	%
Core fixed income bond fund		—			30,762		30,762		—		—		—
Total non-bargain VEBA		100	%	$	103,098	$	103,097	$	1		—		100	%
Life VEBA:
Cash		—		$	65	$	65	$	—		—		—
Equity securities:
U.S. large cap		70	%		4,924		4,924		—		—		67	%
Fixed income securities:		30	%										33	%
Core fixed income bond fund		—			2,336		2,336		—		—		—
Total life VEBA		100	%	$	7,325	$	7,325	$	—		—		100	%
Total		100	%	$	512,048	$	343,730	$	168,318		—		100	%

(a)	Includes cash for margin requirements.

The fair values and asset allocations of postretirement benefit plan assets at December 31, 2013, by asset category, follow:

Asset Category	Target Allocation 2014			Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Percentage of Plan Assets at December 31, 2013
Bargain Veba:
Cash		—		$	689	$	689	$	—		—		—
Equity securities:
U.S. large cap		18	%		72,108		72,108		—		—		19	%
U.S. small cap value		7	%		26,574		26,574		—		—		7	%
International		15	%		55,888		55,888		—		—		15	%
Fixed income securities:		60	%										59	%
U.S. Treasury securities and government bonds		—			95,010		91,578		3,432		—		—
Corporate bonds		—			117,843		—		117,843		—		—
Long duration bond fund		—			2,043		2,043		—		—		—
Future and option contracts (a)		—			620		620		—		—		—
Total bargain VEBA		100	%	$	370,775	$	249,500	$	121,275		—		100	%
Non-bargain VEBA:
Cash		—		$	3,451	$	3,451	$	—		—		—
Equity securities:
U.S. large cap		21	%		41,430		41,430		—		—		43	%
U.S. small cap value		21	%		—		—		—		—		0	%
International		28	%		27,739		27,739		—		—		29	%
Fixed income securities:		30	%										28	%
Core fixed income bond fund		—			23,563		23,563		—		—		—
Total non-bargain VEBA		100	%	$	96,183	$	96,183	$	—		—		100	%
Life VEBA:
Cash		—		$	27	$	27	$	—		—		—
Equity securities:
U.S. large cap		70	%		5,527		5,527		—		—		71	%
Fixed income securities:		30	%										29	%
Core fixed income bond fund		—			2,206		2,206		—		—		—
Total Life VEBA		100	%	$	7,760	$	7,760	$	—		—		100	%
Total		100	%	$	474,718	$	353,443	$	121,275		—		100	%

(a)	Includes cash for margin requirements.

Valuation Techniques Used to Determine Fair Value

Cash—Cash and investments with maturities of three months or less when purchased, including certain short-term fixed-income securities, are considered cash and are included in the recurring fair value measurements hierarchy as Level 1.

Equity securities—For equity securities, the trustees obtain prices from pricing services, whose prices are obtained from direct feeds from market exchanges, that the Company is able to independently corroborate. Equity securities are valued based on quoted prices in active markets and categorized as Level 1. Certain equities, such as international securities held in the pension plan are invested in commingled funds. These funds are valued to reflect the plan fund’s interest in the fund based on the reported year-end net asset value. Since net asset value is not directly observable or not available on a nationally recognized securities exchange for the commingled funds, they are categorized as Level 2.

Fixed-income securities—The majority of U.S. Treasury securities and government bonds have been categorized as Level 1 because they trade in highly-liquid and transparent markets that the Company can corroborate. The fair values of corporate bonds, mortgage backed securities, certain government bonds and a guaranteed annuity contract are based on evaluated prices that reflect observable market information, such as actual trade information of similar securities, and have been categorized as Level 2 because the valuations are calculated using models which utilize actively traded market data that the Company can corroborate. Certain other guaranteed annuity contracts are categorized as Level 3 because the investments are not publicly quoted. The fund administrator values the fund using the net asset value per fund share, derived from the quoted prices in active markets of the underlying securities. Since these valuation inputs are not highly observable, these contracts have been categorized as Level 3. Exchange-traded future and option positions are reported in accordance with changes in daily variation margins that are settled daily. Exchange-traded options and futures, for which market quotations are readily available, are valued at the last reported sale price or official closing price on the primary market or exchange on which they are traded and are classified as Level 1.

Real estate fund—Real estate fund is valued using the net asset value based on valuation models of underlying securities which generally include significant unobservable inputs that cannot be corroborated using verifiable observable market data. Real estate fund is categorized as Level 3 as the fund uses significant unobservable inputs for fair value measurement.

REITs—REITs are invested in commingled funds. Commingled funds are valued to reflect the plan fund’s interest in the fund based on the reported year-end net asset value. Since the net asset value is not directly observable for the commingled funds, they are categorized as Level 2.

The following table provides a rollforward of the changes in the benefit obligation and plan assets for the most recent two years for all plans combined:

	Pension Benefits						Other Benefits
	2014			2013			2014			2013
Change in benefit obligation
Benefit obligation at January 1	$	1,494,132		$	1,621,244		$	561,923		$	687,082
Service cost		31,773			37,872			11,058			15,282
Interest cost		76,652			68,096			28,605			28,700
Plan participants' contributions		—			—			2,625			2,514
Actuarial (gain) loss		255,762			(180,688	)		123,342			(148,410	)
Gross benefits paid		(111,863	)		(52,392	)		(26,440	)		(25,263	)
Federal subsidy		—			—			2,159			2,018
Benefit obligation at December 31	$	1,746,456		$	1,494,132		$	703,272		$	561,923

Change in Plan Assets
Fair value of plan assets at January 1	$	1,383,621		$	1,157,697		$	474,718		$	433,260
Actual return on plan assets		116,363			208,821			48,989			36,202
Employer contributions		40,039			69,495			12,156			28,005
Plan participants' contributions		—			—			2,625			2,514
Benefits paid		(111,863	)		(52,392	)		(26,440	)		(25,263	)
Fair value of plan assets at December 31	$	1,428,160		$	1,383,621		$	512,048		$	474,718

Funded status at December 31	$	(318,296	)	$	(110,511	)	$	(191,224	)	$	(87,205	)

Amounts recognized in the balance sheet consist of:
Noncurrent asset	$	—		$	—		$	1,326		$	1,271
Current liability		(1,928	)		(1,969	)		(48	)		(57	)
Noncurrent liability		(316,368	)		(108,542	)		(192,502	)		(88,419	)
Net amount recognized	$	(318,296	)	$	(110,511	)	$	(191,224	)	$	(87,205	)

Benefits paid in 2014 includes $55,579 from a one-time lump sum window offering to retired vested participants.

The following table provides the components of the Company’s accumulated other comprehensive income and regulatory assets that have not been recognized as components of periodic benefit costs as of December 31:

	Pension Benefits				Other Benefits
	2014		2013		2014			2013

Net actuarial loss	$	379,743	$	145,376	$	119,566		$	17,632
Prior service cost (credit)		3,694		4,418		(12,330	)		(14,519	)
Net amount recognized	$	383,437	$	149,794	$	107,236		$	3,113
Regulatory assets	$	248,641	$	90,380	$	107,236		$	3,113
Accumulated other comprehensive income		134,796		59,414		—			—
	$	383,437	$	149,794	$	107,236		$	3,113

At December 31, 2014 and 2013, the projected benefit obligation, accumulated benefit obligation and fair value of plan assets for pension plans with a projected obligation in excess of plan assets were as follows:

	Projected Benefit
	Obligation Exceeds the
	Fair Value of Plans' Assets
	2014		2013
Projected benefit obligation	$	1,746,000	$	1,494,000
Fair value of plan assets		1,428,000		1,384,000

	Accumulated Benefit
	Obligation Exceeds the
	Fair Value of Plans' Assets
	2014		2013
Accumulated benefit obligation	$	1,616,000	$	43,000
Fair value of plan assets		1,428,000		17,000

The accumulated postretirement benefit obligation exceeds plan assets for all of the Company’s other postretirement benefit plans.

In August 2006, the Pension Protection Act (“PPA”) was signed into law in the U.S. The PPA replaces the funding requirements for defined benefit pension plans by requiring that defined benefit plans contribute to 100% of the current liability funding target over seven years. Defined benefit plans with a funding status of less than 80% of the current liability are defined as being “at risk” and additional funding requirements and benefit restrictions may apply. The PPA was effective for the 2008 plan year with short-term phase-in provisions for both the funding target and at-risk determination. The Company’s qualified defined benefit plan is currently funded above the at-risk threshold, and therefore the Company expects that the plans will not be subject to the “at risk” funding requirements of the PPA. The Company is proactively monitoring the plan’s funded status and projected contributions under the law to appropriately manage the potential impact on cash requirements.

Minimum funding requirements for the qualified defined benefit pension plan are determined by government regulations and not by accounting pronouncements. The Company plans to contribute amounts at least equal to the greater of the minimum required contributions or the normal cost in 2015 to the qualified pension plans. The Company plans to contribute to its 2015 other postretirement benefit cost for rate-making purposes.

Information about the expected cash flows for the pension and postretirement benefit plans is as follows:

	Pension		Other
	Benefits		Benefits
2015 expected employer contributions
To plan trusts	$	28,000	$	26,500
To plan participants		1,929		104

The Company made 2015 contributions to fund pension benefits and other benefits of $6,100 and $6,632, respectively, through February 2015.

The following table reflects the net benefits expected to be paid from the plan assets or the Company’s assets:

	Pension Benefits		Other Benefits
	Expected Benefit Payments		Expected Benefit Payments		Expected Federal Subsidy Payments
2015	$	63,355	$	27,897	$	2,113
2016		69,673		30,672		2,295
2017		75,894		33,518		2,486
2018		82,063		36,502		2,678
2019		88,635		39,172		2,892
2020—2024		528,913		226,602		18,220

Because the above amounts are net benefits, plan participants’ contributions have been excluded from the expected benefits.

Accounting for pensions and other postretirement benefits requires an extensive use of assumptions about the discount rate, expected return on plan assets, the rate of future compensation increases received by the Company’s employees, mortality, turnover and medical costs. Each assumption is reviewed annually. The assumptions are selected to represent the average expected experience over time and may differ in any one year from actual experience due to changes in capital markets and the overall economy. These differences will impact the amount of pension and other postretirement benefit expense that the Company recognizes.

The significant assumptions related to the Company’s pension and other postretirement benefit plans are as follows:

	Pension Benefits						Other Benefits
	2014		2013		2012		2014			2013			2012
Weighted-average assumptions used to determine December 31 benefit obligations
Discount rate		4.24%		5.12%		4.17%		4.24	%		5.10	%		4.16	%
Rate of compensation increase		3.12%		3.15%		3.19%	N/A			N/A			N/A
Medical trend	N/A		N/A		N/A		graded from			graded from			graded from
							6.75% in 2014			7.00% in 2013			7.25% in 2012
							to 5.00% in 2021+			to 5.00% in 2019+			to 5.00% in 2019+

Weighted-average assumptions used to determine net periodic cost
Discount rate		5.12%		4.17%		5.02%		5.10	%		4.16	%		5.05	%
Expected return on plan assets		6.91%		7.49%		7.75%		5.87	%		6.99	%		7.41	%
Rate of compensation increase		3.15%		3.19%		3.25%	N/A			N/A			N/A
Medical trend	N/A		N/A		N/A		graded from			graded from			graded from
							7.00% in 2014			7.25% in 2013			7.50% in 2012
							to 5.00% in 2019+			to 5.00% in 2019+			to 5.00% in 2019+
______________________
N/A - Assumption is not applicable.

The discount rate assumption was determined for the pension and postretirement benefit plans independently. At year-end 2011, the Company began using an approach that approximates the process of settlement of obligations tailored to the plans’ expected cash flows by matching the plans’ cash flows to the coupons and expected maturity values of individually selected bonds. The yield curve was developed for a universe containing the majority of U.S.-issued AA-graded corporate bonds, all of which were non callable (or callable with make-whole provisions). Historically, for each plan, the discount rate was developed as the level equivalent rate that would produce the same present value as that using spot rates aligned with the projected benefit payments.

The expected long-term rate of return on plan assets is based on historical and projected rates of return, prior to administrative and investment management fees, for current and planned asset classes in the plans’ investment portfolios. Assumed projected rates of return for each of the plans’ projected asset classes were selected after analyzing historical experience and future expectations of the returns and volatility of the various asset classes. Based on the target asset allocation for each asset class, the overall expected rate of return for the portfolio was developed, adjusted for historical and expected experience of active portfolio management results compared to the benchmark returns and for the effect of expenses paid from plan assets. The Company’s pension expense increases as the expected return on assets decreases.

In the determination of year end 2014 projected benefit plan obligations, the Company adopted a new table based on the Society of Actuaries RP 2014 mortality table including a generational BB-2D projection scale. The adoption resulted in a significant increase to pension and other postretirement benefit plans’ projected benefit obligations.

Assumed health care cost trend rates have a significant effect on the amounts reported for the other postretirement benefit plans. The health care cost trend rate is based on historical rates and expected market conditions. A one-percentage-point change in assumed health care cost trend rates would have the following effects:

	One-Percentage-Point Increase		One-Percentage-Point Decrease
Effect on total of service and interest cost components	$	5,943	$	(4,887	)
Effect on other postretirement benefit obligation	$	105,967	$	(86,179	)

The following table provides the components of net periodic benefit costs for the years ended December 31:

	2014			2013			2012
Components of net periodic pension benefit cost
Service cost	$	31,773		$	37,872		$	34,209
Interest cost		76,652			68,096			70,866
Expected return on plan assets		(94,838	)		(88,429	)		(79,272	)
Amortization of:
Prior service cost (credit)		724			724			723
Actuarial (gain) loss		(131	)		37,170			29,636
Settlement loss		—			—			7,135
Net periodic pension benefit cost	$	14,180		$	55,433		$	63,297

Other changes in plan assets and benefit obligations recognized in other comprehensive income
Amortization of prior service credit (cost)	$	(166	)	$	(174	)	$	(176	)
Current year actuarial (gain) loss		46,119			(73,472	)		26,425
Amortization of actuarial gain (loss)		31			(8,911	)		(7,301	)
Total recognized in other comprehensive income	$	45,984		$	(82,557	)	$	18,948
Total recognized in net periodic benefit cost and comprehensive income	$	60,164		$	(27,124	)	$	82,245

Components of net periodic other postretirement benefit cost
Service cost	$	11,058		$	15,282		$	14,207
Interest cost		28,605			28,700			31,570
Expected return on plan assets		(27,500	)		(30,285	)		(28,711	)
Amortization of:
Prior service cost (credit)		(81	)		(2,189	)		(1,915	)
Actuarial (gain) loss		(2,189	)		11,128			9,537
Other		—			—			(696	)
Net periodic other postretirement benefit cost	$	9,893		$	22,636		$	23,992

The Company’s policy is to recognize curtailments when the total expected future service of plan participants is reduced by greater than 10% due to an event that results in terminations and/or retirements.

Cumulative gains and losses that are in excess of 10% of the greater of either the projected benefit obligation or the fair value of plan assets are amortized over the expected average remaining future service of the current active membership for the plans.

The estimated amounts that will be amortized from accumulated other comprehensive income and regulatory assets into net periodic benefit cost in 2015 are as follows:

	Pension Benefits		Other Benefits
Actuarial (gain) loss	$	25,108	$	5,009
Prior service cost (credit)		754		(2,189	)
Total	$	25,862	$	2,820

Savings Plans for Employees

The Company maintains 401(k) savings plans that allow employees to save for retirement on a tax-deferred basis. Employees can make contributions that are invested at their direction in one or more funds. The Company makes matching contributions based on a percentage of an employee’s contribution, subject to certain limitations. Due to the Company’s discontinuing new entrants into the defined benefit pension plan, on January 1, 2006 the Company began providing an additional 5.25% of base pay defined contribution benefit for union employees hired on or after January 1, 2001 and non-union employees hired on or after January 1, 2006. Plan expenses totaled $7,595 for 2014, $7,926 for 2013 and $7,990 for 2012. All of the Company’s contributions are invested in one or more funds at the direction of the employee.