Retirement benefits

Defined benefit pension and other postretirement benefit plans information. For the first three months of 2017, the Company contributed $17 million ($17 million by the Utilities) to its pension and other postretirement benefit plans, compared to $16 million ($16 million by the Utilities) in the first three months of 2016. The Company’s current estimate of contributions to its pension and other postretirement benefit plans in 2017 is $67 million ($66 million by the Utilities, $1 million by HEI and nil by ASB), compared to $65 million ($64 million by the Utilities, $1 million by HEI and nil by ASB) in 2016. In addition, the Company expects to pay directly $2 million ($1 million by the Utilities) of benefits in 2017, compared to $2 million ($1 million by the Utilities) paid in 2016.

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



	Three months ended March 31
	Pension benefits						Other benefits
(in thousands)	2017			2016			2017			2016
HEI consolidated
Service cost	$	16,494		$	15,391		$	840		$	836
Interest cost	20,216			20,277			2,411			2,474
Expected return on plan assets	(25,721		)	(24,664		)	(3,066		)	(3,052		)
Amortization of net prior service loss (gain)	(14		)	(14		)	(449		)	(448		)
Amortization of net actuarial loss	6,513			5,969			366			287
Net periodic benefit cost	17,488			16,959			102			97
Impact of PUC D&Os	(5,156		)	(4,046		)	146			189
Net periodic benefit cost (adjusted for impact of PUC D&Os)	$	12,332		$	12,913		$	248		$	286
Hawaiian Electric consolidated
Service cost	$	16,094		$	14,933		$	835		$	822
Interest cost	18,589			18,603			2,327			2,389
Expected return on plan assets	(24,011		)	(22,932		)	(3,017		)	(3,003		)
Amortization of net prior service loss (gain)	2			4			(451		)	(451		)
Amortization of net actuarial loss	6,006			5,461			359			284
Net periodic benefit cost	16,680			16,069			53			41
Impact of PUC D&Os	(5,156		)	(4,046		)	146			189
Net periodic benefit cost (adjusted for impact of PUC D&Os)	$	11,524		$	12,023		$	199		$	230

HEI consolidated recorded retirement benefits expense of $9 million ($8 million by the Utilities) and $9 million ($8 million by the Utilities) in the first three months of 2017 and 2016, 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 three months of 2017 and 2016, the Company’s expenses for its defined contribution pension plans under the Hawaiian Electric Industries Retirement Savings Plan (HEIRSP) and the ASB 401(k) Plan were $1.5 million and $1.4 million, respectively, and cash contributions were $2.9 million and $2.7 million, respectively. For the first three months of 2017 and 2016, the Utilities’ expenses for its defined contribution pension plan under the HEIRSP were $0.5 million and $0.4 million, respectively, and cash contributions were $0.5 million and $0.4 million, respectively.