Employee Benefit Plans

6 Months Ended

Jun. 30, 2019

Net periodic benefit costs for our pension and post-retirement benefits plans for the three and six months ended June 30, 2019 and 2018 are set forth in the following tables:



	Chesapeake Pension Plan						FPU Pension Plan						Chesapeake SERP				Chesapeake Postretirement Plan						FPU Medical Plan
For the Three Months Ended June 30,	2019			2018			2019			2018			2019		2018		2019			2018			2019		2018
(in thousands)
Interest cost	$	104		$	98		$	615		$	592		$	21	$	21	$	9		$	9		$	12	$	13
Expected return on plan assets	(127		)	(138		)	(693		)	(774		)	—		—		—			—			—		—
Amortization of prior service credit	—			—			—			—			—		—		(19		)	(19		)	—		—
Amortization of net loss	101			88			129			108			26		25		12			15			—		—
Net periodic cost (benefit)	78			48			51			(74		)	47		46		2			5			12		13
Amortization of pre-merger regulatory asset	—			—			191			191			—		—		—			—			2		2
Total periodic cost	$	78		$	48		$	242		$	117		$	47	$	46	$	2		$	5		$	14	$	15



	Chesapeake Pension Plan						FPU Pension Plan						Chesapeake SERP				Chesapeake Postretirement Plan						FPU Medical Plan
For the Six Months Ended June 30,	2019			2018			2019			2018			2019		2018		2019			2018			2019		2018
(in thousands)
Interest cost	$	209		$	195		$	1,230		$	1,184		$	42	$	42	$	19		$	19		$	24	$	26
Expected return on plan assets	(254		)	(276		)	(1,386		)	(1,549		)	—		—		—			—			—		—
Amortization of prior service credit	—			—			—			—			—		—		(39		)	(39		)	—		—
Amortization of net loss	203			176			258			217			52		50		24			30			—		—
Net periodic cost (benefit)	158			95			102			(148		)	94		92		4			10			24		26
Amortization of pre-merger regulatory asset	—			—			381			381			—		—		—			—			4		4
Total periodic cost	$	158		$	95		$	483		$	233		$	94	$	92	$	4		$	10		$	28	$	30

We expect to record pension and postretirement benefit costs of approximately $1.3 million for 2019. Included in these costs is approximately $0.6 million related to continued amortization of the FPU pension regulatory asset, which represents the portion attributable to FPU’s regulated energy operations for the changes in funded status that occurred, but were not recognized, as part of net periodic benefit costs prior to the FPU merger in 2009. This was deferred as a regulatory asset by FPU prior to the merger, to be recovered through rates pursuant to a previous order by the Florida PSC. The unamortized balance of this regulatory asset was approximately $0.2 million and approximately $0.6 million at June 30, 2019 and December 31, 2018, respectively. Excluding the service cost component, the other components of the net periodic costs have been recorded or reclassified to other expense, net in the condensed consolidated statements of income.

Pursuant to a Florida PSC order, FPU continues to record, as a regulatory asset, a portion of the unrecognized pension and postretirement benefit costs related to its regulated operations after the FPU merger. The portion of the unrecognized pension and postretirement benefit costs related to FPU’s unregulated operations and Chesapeake Utilities' operations is recorded to accumulated other comprehensive loss.

The following tables present the amounts included in the regulatory asset and accumulated other comprehensive loss that were recognized as components of net periodic benefit cost during the three and six months ended June 30, 2019 and 2018:



For the Three Months Ended June 30, 2019	Chesapeake Pension Plan		FPU Pension Plan		Chesapeake SERP		Chesapeake Postretirement Plan			FPU Medical Plan		Total
(in thousands)
Prior service credit	$	—	$	—	$	—	$	(19	)	$	—	$	(19	)
Net loss	101		129		26		12			—		268
Total recognized in net periodic benefit cost	101		129		26		(7		)	—		249
Recognized from accumulated other comprehensive loss ⁽¹⁾	101		24		26		(7		)	—		144
Recognized from regulatory asset	—		105		—		—			—		105
Total	$	101	$	129	$	26	$	(7	)	$	—	$	249



For the Three Months Ended June 30, 2018	Chesapeake Pension Plan		FPU Pension Plan		Chesapeake SERP		Chesapeake Postretirement Plan			FPU Medical Plan		Total
(in thousands)
Prior service credit	$	—	$	—	$	—	$	(19	)	$	—	$	(19	)
Net loss	88		108		25		15			—		236
Total recognized in net periodic benefit cost	88		108		25		(4		)	—		217
Recognized from accumulated other comprehensive loss ⁽¹⁾	88		21		25		(4		)	—		130
Recognized from regulatory asset	—		87		—		—			—		87
Total	$	88	$	108	$	25	$	(4	)	$	—	$	217



For the Six Months Ended June 30, 2019	Chesapeake Pension Plan		FPU Pension Plan		Chesapeake SERP		Chesapeake Postretirement Plan			FPU Medical Plan		Total
(in thousands)
Prior service credit	—		—		—		(39		)	—		(39		)
Net loss	203		258		52		24			—		537
Total recognized in net periodic benefit cost	203		258		52		(15		)	—		498
Recognized from accumulated other comprehensive loss ⁽¹⁾	203		49		52		(15		)	—		289
Recognized from regulatory asset	—		209		—		—			—		209
Total	$	203	$	258	$	52	$	(15	)	$	—	$	498



For the Six Months Ended June 30, 2018	Chesapeake Pension Plan		FPU Pension Plan		Chesapeake SERP		Chesapeake Postretirement Plan			FPU Medical Plan		Total
(in thousands)
Prior service credit	$	—	$	—	$	—	$	(39	)	$	—	$	(39	)
Net loss	176		217		50		30			—		473
Total recognized in net periodic benefit cost	176		217		50		(9		)	—		434
Recognized from accumulated other comprehensive loss ⁽¹⁾	176		41		50		(9		)	—		258
Recognized from regulatory asset	—		176		—		—			—		176
Total	$	176	$	217	$	50	$	(9	)	$	—	$	434

⁽¹⁾See Note 8, Stockholder's Equity.

During the three and six months ended June 30, 2019, we contributed approximately $0.1 million to the Chesapeake Pension Plan and approximately $0.4 million and $0.6 million, respectively, to the FPU Pension Plan. We expect to contribute a total of approximately $0.2 million and approximately $1.2 million to the Chesapeake Pension Plan and FPU Pension Plan, respectively, during 2019, which represents the minimum annual contribution payments required.

The Chesapeake SERP, the Chesapeake Postretirement Plan and the FPU Medical Plan are unfunded and are expected to be paid out of our general funds. Cash benefits paid under the Chesapeake SERP for the six months ended June 30, 2019 were $0.1 million. There were immaterial cash benefits paid for the three months ended June 30, 2019. We expect to pay total cash benefits of approximately $0.4 million under the Chesapeake SERP in 2019. Cash benefits paid under the Chesapeake Postretirement Plan, primarily for medical claims for the six months ended June 30, 2019, were immaterial and no cash benefits were paid for medical claims during the second quarter of 2019. We estimate that approximately $0.1 million will be paid for such benefits under the Chesapeake Postretirement Plan in 2019. Cash benefits paid under the FPU Medical Plan, primarily for medical claims for the three and six months ended June 30, 2019, were immaterial for each period. We estimate that approximately $0.1 million will be paid for such benefits under the FPU Medical Plan in 2019.