Retirement benefits

Defined benefit pension and other postretirement benefit plans information. For the first nine months of 2017, the Company contributed $50 million ($49 million by the Utilities) to its pension and other postretirement benefit plans, compared to $49 million ($48 million by the Utilities) in the first nine 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, comparable to benefits paid directly in 2016.

The components of NPPC and NPBC for HEI consolidated and Hawaiian Electric consolidated were as follows:



	Three months ended September 30												Nine months ended September 30
	Pension benefits						Other benefits						Pension benefits						Other benefits
(in thousands)	2017			2016			2017			2016			2017			2016			2017			2016
HEI consolidated
Service cost	$	16,271		$	15,126		$	843		$	831		$	48,635		$	45,430		$	2,530		$	2,499
Interest cost	20,304			20,396			2,363			2,417			60,881			61,154			7,089			7,254
Expected return on plan assets	(25,689		)	(24,640		)	(3,078		)	(3,064		)	(77,056		)	(73,920		)	(9,248		)	(9,207		)
Amortization of net prior service gain	(14		)	(15		)	(448		)	(449		)	(41		)	(43		)	(1,345		)	(1,345		)
Amortization of net actuarial loss	6,638			6,228			283			200			19,858			18,605			848			603
Net periodic pension/benefit cost	17,510			17,095			(37		)	(65		)	52,277			51,226			(126		)	(196		)
Impact of PUC D&Os	(4,534		)	(4,653		)	346			336			(14,557		)	(13,464		)	1,019			1,008
Net periodic pension/benefit cost (adjusted for impact of PUC D&Os)	$	12,976		$	12,442		$	309		$	271		$	37,720		$	37,762		$	893		$	812
Hawaiian Electric consolidated
Service cost	$	15,764		$	14,699		$	839		$	821		$	47,294		$	44,097		$	2,515		$	2,463
Interest cost	18,659			18,702			2,279			2,334			55,974			56,106			6,837			7,003
Expected return on plan assets	(23,973		)	(22,908		)	(3,037		)	(3,023		)	(71,919		)	(68,725		)	(9,110		)	(9,072		)
Amortization of net prior service loss (gain)	2			3			(451		)	(451		)	6			10			(1,353		)	(1,353		)
Amortization of net actuarial loss	6,098			5,674			275			198			18,294			17,020			826			595
Net periodic pension/benefit cost	16,550			16,170			(95		)	(121		)	49,649			48,508			(285		)	(364		)
Impact of PUC D&Os	(4,534		)	(4,653		)	346			336			(14,557		)	(13,464		)	1,019			1,008
Net periodic pension/benefit cost (adjusted for impact of PUC D&Os)	$	12,016		$	11,517		$	251		$	215		$	35,092		$	35,044		$	734		$	644

HEI consolidated recorded retirement benefits expense of $25 million ($22 million by the Utilities) and $26 million ($23 million by the Utilities) in the first nine 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 nine 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 $5.1 million and $4.1 million, respectively, and cash contributions were $5.0 million and $4.6 million, respectively. For the first nine months of 2017 and 2016, the Utilities’ expenses for its defined contribution pension plan under the HEIRSP were $1.4 million and $1.2 million, respectively, and cash contributions were $1.4 million and $1.2 million, respectively.