7. PENSION AND OTHER POSTRETIREMENT BENEFIT COSTS

The following table provides the components of net periodic benefit cost for the Company's pension and other postretirement benefit plans:



	Three Months Ended June 30,
							Other Postretirement
	Pension Benefits						Benefits
In thousands	2014			2013			2014			2013
Service cost	$	1,918		$	2,341		$	136		$	179
Interest cost	4,512			4,104			309			286
Expected return on plan assets	(4,886		)	(4,678		)	—			—
Amortization of net actuarial loss	2,580			4,421			46			169
Amortization of prior service costs	56			55			49			49
Net periodic benefit cost	4,180			6,243			540			683
Amount allocated to construction	(1,201		)	(1,801		)	(171		)	(211		)
Amount deferred to regulatory balancing account⁽¹⁾	(1,123		)	(2,271		)	—			—
Net amount charged to expense	$	1,856		$	2,171		$	369		$	472



	Six Months Ended June 30,
							Other Postretirement
	Pension Benefits						Benefits
In thousands	2014			2013			2014			2013
Service cost	$	3,836		$	4,682		$	271		$	358
Interest cost	9,024			8,207			619			572
Expected return on plan assets	(9,772		)	(9,356		)	—			—
Amortization of net actuarial loss	5,160			8,842			92			338
Amortization of prior service costs	112			111			98			98
Net periodic benefit cost	8,360			12,486			1,080			1,366
Amount allocated to construction	(2,402		)	(3,656		)	(341		)	(430		)
Amount deferred to regulatory balancing account⁽¹⁾	(2,224		)	(4,620		)	—			—
Net amount charged to expense	$	3,734		$	4,210		$	739		$	936

⁽¹⁾ The deferral of certain pension expenses above or below the amount set in rates was approved by the OPUC, with recovery of these deferred amounts through the implementation of a balancing account, which includes the expectation of lower net periodic benefit costs in future years. Deferred pension expense balances include accrued interest at the utility’s actual cost of long-term debt, with deferred revenue in the utility's allocated share of equity to be recognized in a future accounting period when deferred pension expense is collected.

The following table presents amounts recognized in accumulated other comprehensive loss (AOCL) and the changes in AOCL related to our non-qualified employee benefit plans:



	Three Months Ended June 30,						Six Months Ended June 30,
In thousands	2014			2013			2014			2013
Beginning balance	$	(6,193	)	$	(9,058	)	$	(6,358	)	$	(9,291	)
Amounts reclassified from AOCL:
Amortization of prior service costs	(2		)	(2		)	(4		)	(4		)
Amortization of actuarial losses	276			385			551			771
Total reclassifications before tax	274			383			547			767
Tax expense	(108		)	(151		)	(216		)	(302		)
Total reclassifications for the period	166			232			331			465
Ending balance	$	(6,027	)	$	(8,826	)	$	(6,027	)	$	(8,826	)

Employer Contributions to Company-Sponsored Defined Benefit Pension Plan

For the six months ended June 30, 2014, we made cash contributions totaling $6.0 million to our qualified defined benefit pension plan. In 2012, Congress passed the "Moving Ahead for Progress in the 21st Century Act" (MAP-21), which, among other things, includes provisions that reduce the level of minimum required contributions in the near-term but generally increase contributions in the long-run as well as increase the operational costs of running a pension plan. We expect to contribute up to $15 million to the pension plan during 2014.

Multiemployer Pension Plan

In addition to the Company-sponsored defined benefit pension plan described above, the Company also participated in a multiemployer pension plan for its utility’s union employees known as the Western States Office and Professional Employees International Union Pension Fund (plan's EIN is 94-6076144) prior to December 2013; the Company withdrew from this plan in December 2013. NW Natural's vested participants will be entitled to receive all benefits accrued through the date of the withdrawal. The Company recorded a withdrawal liability of $8.3 million, which requires NW Natural to pay $0.6 million to the plan each year for the next 20 years. The cost of withdrawal liability was deferred to a regulatory account on the balance sheet, and we made our first quarterly payment in June 2014.

Defined Contribution Plan

The Retirement K Savings Plan provided to our employees is a qualified defined contribution plan under Internal Revenue Code Section 401(k). Company contributions to this plan totaled $1.9 million and $1.6 million for the six months ended June 30, 2014 and 2013, respectively.

See Note 8 in the 2013 Form 10-K for more information concerning these retirement and other postretirement benefit plans.