BENEFIT PLANS

Idaho Power has two defined benefit pension plans - a noncontributory defined benefit pension plan (pension plan) and nonqualified defined benefit plans for certain senior management employees called the Security Plan for Senior Management Employees I and II (SMSP). The benefits under the pension plan are based on years of service and the employee’s final average earnings. Idaho Power also maintains a defined benefit postretirement benefit plan (consisting of health care and death benefits) that covers all employees who were enrolled in the active-employee group plan at the time of retirement as well as their spouses and qualifying dependents. The table below shows the components of net periodic benefit costs for the pension, SMSP, and postretirement benefits plans for the three months ended March 31, 2014 and 2013 (in thousands of dollars).



	Pension Plan						SMSP				Postretirement Benefits
	2014			2013			2014		2013		2014			2013
Service cost	$	6,584		$	7,812		$	411	$	545	$	276		$	413
Interest cost	8,871			7,936			964		814		716			743
Expected return on plan assets	(10,321		)	(8,698		)	—		—		(656		)	(595		)
Amortization of prior service cost	87			87			55		53		46			(25		)
Amortization of net loss	1,008			4,252			655		710		—			169
Net periodic benefit cost	6,229			11,389			2,085		2,122		382			705
Adjustments due to the effects of regulation⁽¹⁾	(1,705		)	(6,543		)	—		—		—			—
Net periodic benefit cost recognized for financial reporting⁽¹⁾	$	4,524		$	4,846		$	2,085	$	2,122	$	382		$	705

⁽¹⁾ Net periodic benefit costs for the pension plan are recognized for financial reporting based upon the authorization of each regulatory jurisdiction in which Idaho Power operates. Under IPUC order, income statement recognition of pension plan costs is deferred until costs are recovered through rates.

During the three months ended March 31, 2014, Idaho Power made no contributions to its defined benefit pension plan. In April 2014, Idaho Power made a $6.5 million contribution to the pension plan. Idaho Power's minimum required contributions to the pension plan are estimated to be $1.4 million in 2014, though Idaho Power plans to contribute at least $20 million to the pension plan during 2014.

Idaho Power also has an Employee Savings Plan that complies with Section 401(k) of the Internal Revenue Code and covers substantially all employees. Idaho Power matches specified percentages of employee contributions to the Employee Savings Plan.