Retirement benefits

Defined benefit pension and other postretirement benefit plans information. For the first six months of 2016, the Company contributed $33 million ($32 million by the Utilities) to its pension and other postretirement benefit plans, compared to $44 million ($43 million by the Utilities) in the first six months of 2015. The Company’s current estimate of contributions to its pension and other postretirement benefit plans in 2016 is $65 million ($64 million by the Utilities, $1 million by HEI and nil by ASB), compared to $88 million ($86 million by the Utilities, $2 million by HEI and nil by ASB) in 2015. In addition, the Company expects to pay directly $2 million ($1 million by the Utilities) of benefits in 2016, compared to $1 million ($0.4 million by the Utilities) paid in 2015.

The components of net periodic benefit cost for HEI consolidated and Hawaiian Electric consolidated were as follows:



	Three months ended June 30												Six months ended June 30
	Pension benefits						Other benefits						Pension benefits						Other benefits
(in thousands)	2016			2015			2016			2015			2016			2015			2016			2015
HEI consolidated
Service cost	$	14,913		$	16,640		$	832		$	1,094		$	30,304		$	33,106		$	1,668		$	1,963
Interest cost	20,481			19,363			2,363			2,268			40,758			38,502			4,837			4,503
Expected return on plan assets	(24,616		)	(22,149		)	(3,091		)	(2,934		)	(49,280		)	(44,300		)	(6,143		)	(5,841		)
Amortization of net prior service loss (gain)	(14		)	1			(448		)	(449		)	(28		)	2			(896		)	(897		)
Amortization of net actuarial loss	6,408			9,455			116			466			12,377			18,417			403			896
Net periodic benefit cost	17,172			23,310			(228		)	445			34,131			45,727			(131		)	624
Impact of PUC D&Os	(4,765		)	(10,464		)	483			(218		)	(8,811		)	(19,977		)	672			(120		)
Net periodic benefit cost (adjusted for impact of PUC D&Os)	$	12,407		$	12,846		$	255		$	227		$	25,320		$	25,750		$	541		$	504
Hawaiian Electric consolidated
Service cost	$	14,465		$	16,148		$	820		$	1,080		$	29,398		$	32,131		$	1,642		$	1,935
Interest cost	18,801			17,749			2,280			2,191			37,404			35,265			4,669			4,350
Expected return on plan assets	(22,885		)	(20,639		)	(3,046		)	(2,889		)	(45,817		)	(41,271		)	(6,049		)	(5,748		)
Amortization of net prior service loss (gain)	3			10			(451		)	(451		)	7			20			(902		)	(902		)
Amortization of net actuarial loss	5,885			8,592			113			455			11,346			16,686			397			877
Net periodic benefit cost	16,269			21,860			(284		)	386			32,338			42,831			(243		)	512
Impact of PUC D&Os	(4,765		)	(10,464		)	483			(218		)	(8,811		)	(19,977		)	672			(120		)
Net periodic benefit cost (adjusted for impact of PUC D&Os)	$	11,504		$	11,396		$	199		$	168		$	23,527		$	22,854		$	429		$	392

HEI consolidated recorded retirement benefits expense of $18 million ($16 million by the Utilities) and $18 million ($15 million by the Utilities) in the first six months of 2016 and 2015, respectively, and charged the remaining net periodic benefit cost primarily to electric utility plant.

The Utilities have implemented pension and OPEB tracking mechanisms under which all of their retirement benefit expenses (except for executive life and nonqualified pension plan expenses) determined in accordance with GAAP are recovered over time. Under the tracking mechanisms, these retirement benefit costs that are over/under amounts allowed in rates are charged/credited to a regulatory asset/liability. The regulatory asset/liability for each utility will be amortized over 5 years beginning with the issuance of the PUC’s D&O in the respective utility’s next rate case.

Defined contribution plans information. For the first six months of 2016 and 2015, the Company’s expense for its defined contribution pension plans under the Hawaiian Electric Industries Retirement Savings Plan (HEIRSP) and the ASB 401(k) Plan was $2.8 million and $2.7 million, respectively, and cash contributions were $3.7 million and $3.4 million, respectively. For the first six months of 2016 and 2015, the Utilities’ expense for its defined contribution pension plan under the HEIRSP was $0.8 million and $0.7 million, respectively, and cash contributions were $0.8 million and $0.7 million, respectively.