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Interim Pension and Other Postretirement Benefit Plan Information
 9 Months Ended
Jun. 30, 2016
General Discussion of Pension and Other Postretirement Benefits [Abstract]  
Interim Pension and Postretirement Benefit Plans
Interim Pension and Other Postretirement Benefit Plan Information
The components of our net periodic pension cost for our pension and other postretirement benefit plans for the three and nine months ended June 30, 2016 and 2015 are presented in the following table. Most of these costs are recoverable through our gas distribution rates; however, a portion of these costs is capitalized into our gas distribution rate base. The remaining costs are recorded as a component of operation and maintenance expense.
 
Three Months Ended June 30
 
Pension Benefits
 
Other Benefits
 
2016
 
2015
 
2016
 
2015
 
(In thousands)
Components of net periodic pension cost:
 
 
 
 
 
 
 
Service cost
$
4,698

 
$
5,051

 
$
2,705

 
$
3,895

Interest cost
7,095

 
6,698

 
3,106

 
3,596

Expected return on assets
(6,881
)
 
(6,435
)
 
(1,566
)
 
(1,608
)
Amortization of transition obligation
—

 
—

 
21

 
69

Amortization of prior service credit
(57
)
 
(48
)
 
(411
)
 
(411
)
Amortization of actuarial (gain) loss
3,319

 
3,916

 
(541
)
 
—

Net periodic pension cost
$
8,174

 
$
9,182

 
$
3,314

 
$
5,541

 
 
 
 
 
 
 
 
 
Nine Months Ended June 30
 
Pension Benefits
 
Other Benefits
 
2016
 
2015
 
2016
 
2015
 
(In thousands)
Components of net periodic pension cost:
 
 
 
 
 
 
 
Service cost
$
14,093

 
$
15,153

 
$
8,117

 
$
11,687

Interest cost
21,284

 
20,095

 
9,318

 
10,789

Expected return on assets
(20,642
)
 
(19,308
)
 
(4,698
)
 
(4,824
)
Amortization of transition obligation
—

 
—

 
62

 
205

Amortization of prior service credit
(170
)
 
(144
)
 
(1,233
)
 
(1,233
)
Amortization of actuarial (gain) loss
9,959

 
11,749

 
(1,625
)
 
—

Net periodic pension cost
$
24,524

 
$
27,545

 
$
9,941

 
$
16,624



The assumptions used to develop our net periodic pension cost for the three and nine months ended June 30, 2016 and 2015 are as follows:
 
 
Pension Benefits
 
Other Benefits
 
 
2016
 
2015
 
2016
 
2015
Discount rate
 
4.55%
 
4.43%
 
4.55%
 
4.43%
Rate of compensation increase
 
3.50%
 
3.50%
 
N/A
 
N/A
Expected return on plan assets
 
7.00%
 
7.25%
 
4.45%
 
4.60%

The discount rate used to compute the present value of a plan’s liabilities generally is based on rates of high-grade corporate bonds with maturities similar to the average period over which the benefits will be paid. Generally, our funding policy has been to contribute annually an amount in accordance with the requirements of the Employee Retirement Income Security Act of 1974. In accordance with the Pension Protection Act of 2006 (PPA), we determined the funded status of our plan as of January 1, 2016. Based on that determination, we are not required to make a minimum contribution to our defined benefit plan; however, we made a voluntary contribution of $15.0 million during the third quarter of fiscal 2016.
We contributed $12.8 million to our other post-retirement benefit plans during the nine months ended June 30, 2016. We expect to contribute between $15 million and $25 million to these plans during fiscal 2016.