Retirement benefits

Defined benefit pension and other postretirement benefit plans information. For the first six months of 2017, the Company contributed $33 million (nearly all by the Utilities) to its pension and other postretirement benefit plans, compared to $33 million ($32 million by the Utilities) in the first six 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 NPPC and NPBC 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)	2017			2016			2017			2016			2017			2016			2017			2016
HEI consolidated
Service cost	$	15,870		$	14,913		$	847		$	832		$	32,364		$	30,304		$	1,687		$	1,668
Interest cost	20,361			20,481			2,315			2,363			40,577			40,758			4,726			4,837
Expected return on plan assets	(25,646		)	(24,616		)	(3,104		)	(3,091		)	(51,367		)	(49,280		)	(6,170		)	(6,143		)
Amortization of net prior service gain	(13		)	(14		)	(448		)	(448		)	(27		)	(28		)	(897		)	(896		)
Amortization of net actuarial loss	6,707			6,408			199			116			13,220			12,377			565			403
Net periodic pension/benefit cost	17,279			17,172			(191		)	(228		)	34,767			34,131			(89		)	(131		)
Impact of PUC D&Os	(4,867		)	(4,765		)	527			483			(10,023		)	(8,811		)	673			672
Net periodic pension/benefit cost (adjusted for impact of PUC D&Os)	$	12,412		$	12,407		$	336		$	255		$	24,744		$	25,320		$	584		$	541
Hawaiian Electric consolidated
Service cost	$	15,436		$	14,465		$	841		$	820		$	31,530		$	29,398		$	1,676		$	1,642
Interest cost	18,726			18,801			2,231			2,280			37,315			37,404			4,558			4,669
Expected return on plan assets	(23,935		)	(22,885		)	(3,056		)	(3,046		)	(47,946		)	(45,817		)	(6,073		)	(6,049		)
Amortization of net prior service loss (gain)	2			3			(451		)	(451		)	4			7			(902		)	(902		)
Amortization of net actuarial loss	6,190			5,885			192			113			12,196			11,346			551			397
Net periodic pension/benefit cost	16,419			16,269			(243		)	(284		)	33,099			32,338			(190		)	(243		)
Impact of PUC D&Os	(4,867		)	(4,765		)	527			483			(10,023		)	(8,811		)	673			672
Net periodic pension/benefit cost (adjusted for impact of PUC D&Os)	$	11,552		$	11,504		$	284		$	199		$	23,076		$	23,527		$	483		$	429

HEI consolidated recorded retirement benefits expense of $17 million ($15 million by the Utilities) and $18 million ($16 million by the Utilities) in the first six 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 six 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 $3.3 million and $2.8 million, respectively, and cash contributions were $4.0 million and $3.7 million, respectively. For the first six months of 2017 and 2016, the Utilities’ expenses for its defined contribution pension plan under the HEIRSP were $1.0 million and $0.8 million, respectively, and cash contributions were $1.0 million and $0.8 million, respectively.