EMPLOYEE BENEFIT PLANS

Pension and Other Postemployment Benefit Plans

The components of the net periodic cost for pension benefits, including the Company's Pension Equalization Plan, and OPEB costs (principally health care and life insurance) for employees and covered dependents were as follows:



	Pension						OPEB
	Three Months Ended						Three Months Ended
	December 31,						December 31,
(Thousands)	2013			2012			2013			2012
Service cost	$	1,536		$	1,718		$	981		$	1,171
Interest cost	2,516			2,235			1,433			1,287
Expected return on plan assets	(3,869		)	(3,706		)	(1,044		)	(913		)
Recognized actuarial loss	1,399			1,911			625			964
Prior service cost amortization	28			27			(89		)	7
Recognized net initial obligation	—			—			3			(89		)
Net periodic benefit cost	$	1,610		$	2,185		$	1,909		$	2,427

The Company does not expect to be required to make additional contributions to fund the pension plans over the next three fiscal years based on current actuarial assumptions; however, funding requirements are uncertain and can depend significantly on changes in actuarial assumptions, returns on plan assets, interest rates and changes in the demographics of eligible employees and covered dependents. In addition, as in the past, the Company may elect to make contributions in excess of the minimum required amount to the plans. NJR made a discretionary contribution of $20 million to the pension plans during fiscal 2013. There have been no discretionary contributions made during the three months ended December 31, 2013.