Retirement and Other Employee Benefits

3 Months Ended

Mar. 31, 2016

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
	2016			2015			2016			2015			2016			2015
Service cost	$	1,949		$	1,883		$	45		$	43		$	813		$	920
Interest cost	2,633			2,503			108			92			1,156			1,164
Expected return on plan assets	(3,465		)	(3,390		)	—			—			(1,374		)	(1,312		)
Amortization of prior service cost (1)	(157		)	(157		)	(3		)	(11		)	(253		)	(253		)
Amortization of net actuarial loss (1)	2,106			2,345			139			140			258			681
Net periodic benefit cost	$	3,066		$	3,184		$	289		$	264		$	600		$	1,200

	Twelve months ended March 31,
	Pension						SERP						OPEB
	2016			2015			2016			2015			2016			2015
Service cost	$	7,508		$	6,722		$	161		$	167		$	3,606		$	2,914
Interest cost	10,408			10,589			398			393			4,663			4,442
Expected return on plan assets	(13,643		)	(13,173		)	—			—			(5,258		)	(4,916		)
Amortization of prior service cost (1)	(630		)	156			(35		)	(17		)	(1,011		)	(1,011		)
Amortization of net actuarial loss (1)	9,795			7,308			596			539			2,324			1,420
Net periodic benefit cost	$	13,438		$	11,602		$	1,120		$	1,082		$	4,324		$	2,849

(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. Employees hired after June 1, 2014 will not receive a subsidy for healthcare benefits upon retirement.

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 $12.4 million during 2016. 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 $2.6 million during 2016. The actual minimum funding requirements for both pension and OPEB will be determined based on the results of the actuarial valuations.