RETIREMENT AND OTHER EMPLOYEE BENEFITS

3 Months Ended

Mar. 31, 2015

Retirement and other employee benefits

Retirement and other employee benefits

Note 8 — Retirement and Other Employee 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 March 31,
	Pension						SERP						OPEB
	2015			2014			2015			2014			2015			2014
Service cost	$	1,883		$	1,627		$	43		$	29		$	920		$	607
Interest cost	2,503			2,733			92			87			1,164			1,080
Expected return on plan assets	(3,390		)	(3,322		)	—			—			(1,312		)	(1,196		)
Amortization of prior service cost (1)	(157		)	105			(11		)	(2		)	(253		)	(253		)
Amortization of net actuarial loss (1)	2,345			1,649			140			105			681			228
Net periodic benefit cost	$	3,184		$	2,792		$	264		$	219		$	1,200		$	466

	Twelve months ended March 31,
	Pension						SERP						OPEB
	2015			2014			2015			2014			2015			2014
Service cost	$	6,722		$	7,213		$	167		$	148		$	2,914		$	2,792
Interest cost	10,589			10,287			393			338			4,442			3,916
Expected return on plan assets	(13,173		)	(12,625		)	—			—			(4,916		)	(4,451		)
Amortization of prior service cost (1)	156			503			(17		)	(8		)	(1,011		)	(1,011		)
Amortization of net actuarial loss (1)	7,308			9,504			539			569			1,420			1,841
Net periodic benefit cost	$	11,602		$	14,882		$	1,082		$	1,047		$	2,849		$	3,087

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

We provide certain healthcare and life insurance benefits to eligible retired employees, their dependents and survivors through trusts we have established. Participants generally become eligible for retiree healthcare benefits after reaching age 55 with 5 years of service. For employees hired after June 1, 2014, retiree healthcare benefits received upon retirement will no longer be subsidized.

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 expect to make pension contributions of approximately $12.8 million during 2015. 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. We expect to be required to fund approximately $5.0 million during 2015. The actual minimum funding requirements will be determined based on the results of the actuarial valuations.