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 September 30,
							Other Postretirement
	Pension Benefits						Benefits
In thousands	2014			2013			2014			2013
Service cost	$	1,919		$	2,341		$	136		$	178
Interest cost	4,511			4,103			309			286
Expected return on plan assets	(4,887		)	(4,678		)	—			—
Amortization of net actuarial loss	2,579			4,421			46			169
Amortization of prior service costs	56			56			50			50
Net periodic benefit cost	4,178			6,243			541			683
Amount allocated to construction	(1,242		)	(1,910		)	(177		)	(226		)
Amount deferred to regulatory balancing account⁽¹⁾	(1,107		)	(2,230		)	—			—
Net amount charged to expense	$	1,829		$	2,103		$	364		$	457



	Nine Months Ended September 30,
							Other Postretirement
	Pension Benefits						Benefits
In thousands	2014			2013			2014			2013
Service cost	$	5,755		$	7,023		$	407		$	536
Interest cost	13,535			12,310			928			858
Expected return on plan assets	(14,659		)	(14,034		)	—			—
Amortization of net actuarial loss	7,739			13,263			138			507
Amortization of prior service costs	168			167			148			148
Net periodic benefit cost	12,538			18,729			1,621			2,049
Amount allocated to construction	(3,644		)	(5,566		)	(518		)	(656		)
Amount deferred to regulatory balancing account⁽¹⁾	(3,331		)	(6,850		)	—			—
Net amount charged to expense	$	5,563		$	6,313		$	1,103		$	1,393

⁽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 September 30,						Nine Months Ended September 30,
In thousands	2014			2013			2014			2013
Beginning balance	$	(6,027	)	$	(8,826	)	$	(6,358	)	$	(9,291	)
Amounts reclassified from AOCL:
Amortization of prior service costs	(1		)	(1		)	(5		)	(5		)
Amortization of actuarial losses	275			385			826			1,156
Total reclassifications before tax	274			384			821			1,151
Tax expense	(108		)	(152		)	(324		)	(454		)
Total reclassifications for the period	166			232			497			697
Ending balance	$	(5,861	)	$	(8,594	)	$	(5,861	)	$	(8,594	)

Employer Contributions to Company-Sponsored Defined Benefit Pension Plan

For the nine months ended September 30, 2014, we made cash contributions totaling $10.5 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. In August 2014, the Highway and Transportation Funding Act of 2014 (HATFA) was signed and extends certain aspects of MAP-21 as well as modifies the phase-out periods for the limitations. Due to the effects of HATFA, we do not currently expect further pension plan contributions during the remainder of 2014 and anticipate a reduction in contributions of over $55 million in the next ten years.

Multiemployer Pension Plan

Prior to December 2013, the Company also participated in a multiemployer pension plan for its utility’s union employees. The Company withdrew from this plan in December 2013 and 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 the withdrawal liability was deferred to a regulatory account on the balance sheet, and as of September 30, 2014 the liability balance was $8.1 million.

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 $2.8 million and $2.3 million for the nine months ended September 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.