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						Nine Months Ended						Three Months Ended						Nine Months Ended
	June 30,						June 30,						June 30,						June 30,
(Thousands)	2014			2013			2014			2013			2014			2013			2014			2013
Service cost	$	1,536		$	1,718		$	4,608		$	5,154		$	980		$	1,171		$	2,942		$	3,513
Interest cost	2,517			2,235			7,550			6,705			1,434			1,287			4,300			3,861
Expected return on plan assets	(3,869		)	(3,706		)	(11,607		)	(11,118		)	(1,043		)	(913		)	(3,130		)	(2,739		)
Recognized actuarial loss	1,399			1,911			4,197			5,733			625			964			1,875			2,892
Prior service cost amortization	27			27			83			81			(89		)	(281		)	(267		)	(267		)
Recognized net initial obligation	—			—			—			—			3			199			8			21
Net periodic benefit cost	$	1,610		$	2,185		$	4,831		$	6,555		$	1,910		$	2,427		$	5,728		$	7,281

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 nine months ended June 30, 2014.

In July 2014, the Company implemented a voluntary early retirement program to certain employees and expects to recognize a one-time expense of approximately $5.1 million for related postemployment benefit costs and other termination benefits in the fourth quarter of fiscal 2014.