Retirement Benefits

9 Months Ended

Sep. 30, 2013

Retirement Benefits

Retirement Benefits

Note 8 — Retirement Benefits

Net periodic benefit cost, some of which is capitalized as a component of labor cost and some of which is deferred as a regulatory asset, is comprised of the following components and is shown for our noncontributory defined benefit pension plan, our supplemental retirement program (SERP) and other postretirement benefits (OPEB) (in thousands):

	Three months ended September 30,
	Pension Benefits						SERP						OPEB
	2013			2012			2013			2012			2013			2012
Service cost	$	1,863		$	1,439		$	34		$	23		$	735		$	671
Interest cost	2,516			2,591			78			86			957			962
Expected return on plan assets	(3,107		)	(3,080		)	—			—			(1,088		)	(1,018		)
Amortization of prior service cost (1)	133			133			(2		)	(2		)	(253		)	(253		)
Amortization of net actuarial loss (1)	2,611			2,052			142			139			565			311
Net periodic benefit cost	$	4,016		$	3,135		$	252		$	246		$	916		$	673

	Nine months ended September 30,
	Pension Benefits						SERP						OPEB
	2013			2012			2013			2012			2013			2012
Service cost	$	5,590		$	4,696		$	101		$	39		$	2,206		$	1,801
Interest cost	7,547			7,693			236			197			2,870			3,027
Expected return on plan assets	(9,321		)	(9,232		)	—			—			(3,265		)	(3,101		)
Amortization of prior service cost (1)	399			398			(6		)	(6		)	(758		)	(758		)
Amortization of net actuarial loss (1)	7,834			5,952			426			291			1,696			1,246
Net periodic benefit cost	$	12,049		$	9,507		$	757		$	521		$	2,749		$	2,215

	Twelve months ended September 30,
	Pension Benefits						SERP						OPEB
	2013			2012			2013			2012			2013			2012
Service cost	$	7,156		$	6,094		$	114		$	62		$	2,806		$	2,367
Interest cost	10,111			10,295			301			243			3,879			4,123
Expected return on plan assets	(12,398		)	(12,017		)	—			—			(4,299		)	(4,140		)
Amortization of prior service cost (1)	531			532			(8		)	(8		)	(1,011		)	(1,011		)
Amortization of net actuarial loss (1)	9,818			7,325			523			334			2,112			1,687
Net periodic benefit cost	$	15,218		$	12,229		$	930		$	631		$	3,487		$	3,026

(1) Amounts are amortized from our regulatory asset originally recorded upon recognizing our net pension liability on the balance sheet.

In accordance with our regulatory agreements, our pension funding policy is to make contributions that are at least equal to the greater of either the minimum funding requirements of ERISA or the accrued cost of the plan. We made pension contributions of approximately $16.2 million in July 2013, which are expected to satisfy our funding requirements for the year. The actual minimum funding requirements will be determined based on the results of the actuarial valuations. Our OPEB funding policy is to contribute annually an amount at least equal to the actuarial cost of postretirement benefits.