EMPLOYEE BENEFIT PLANS AND EQUITY COMPENSATION PLAN - SCEG

12 Months Ended

Dec. 31, 2011

EMPLOYEE BENEFIT PLANS

8.             EMPLOYEE BENEFIT PLANS

Pension and Other Postretirement Benefit Plans

The Company sponsors a noncontributory defined benefit pension plan covering substantially all regular, full-time employees. The Company’s policy has been to fund the plan to the extent permitted by applicable federal income tax regulations, as determined by an independent actuary.

The Company’s pension plan provides benefits under a cash balance formula for employees hired before January 1, 2000 who elected that option and for all employees hired on or after January 1, 2000. Under the cash balance formula, benefits accumulate as a result of compensation credits and interest credits. Employees hired before January 1, 2000 who elected to remain under the final average pay formula earn benefits based on years of credited service and the employee’s average annual base earnings received during the last three years of employment.

In addition to pension benefits, the Company provides certain unfunded postretirement health care and life insurance benefits to certain active and retired employees. Retirees share in a portion of their medical care cost. The Company provides life insurance benefits to retirees at no charge. The costs of postretirement benefits other than pensions are accrued during the years the employees render the services necessary to be eligible for these benefits.

Changes in Benefit Obligations

The measurement date used to determine pension and other postretirement benefit obligations is December 31. Data related to the changes in the projected benefit obligation for retirement benefits and the accumulated benefit obligation for other postretirement benefits are presented below.

	Pension Benefits						Other Postretirement Benefits
Millions of dollars	2011			2010			2011			2010
Benefit obligation, January 1	$	811.8		$	789.4		$	213.5		$	210.4
Service cost	18.3			17.9			4.3			4.2
Interest cost	43.5			44.0			12.2			11.9
Plan participants’ contributions	—			—			3.2			3.1
Actuarial (gain) loss	0.4			(1.1		)	7.2			(1.6		)
Benefits paid	(43.9		)	(38.4		)	(14.3		)	(14.5		)
Benefit obligation, December 31	$	830.1		$	811.8		$	226.1		$	213.5

The accumulated benefit obligation for retirement benefits was $784.9 million at the end of 2011 and $766.0 million at the end of 2010. The accumulated retirement benefit obligation differs from the projected retirement benefit obligation above in that it reflects no assumptions about future compensation levels.

Significant assumptions used to determine the above benefit obligations are as follows:

	Pension Benefits				Other Postretirement Benefits
	2011		2010		2011		2010
Annual discount rate used to determine benefit obligation	5.25	%	5.56	%	5.35	%	5.72	%
Assumed annual rate of future salary increases for projected benefit obligation	4.00	%	4.00	%	4.00	%	4.00	%

An 8.2% annual rate of increase in the per capita cost of covered health care benefits was assumed for 2012. The rate was assumed to decrease gradually to 5.0% for 2020 and to remain at that level thereafter.

A one percent increase in the assumed health care cost trend rate would increase the postretirement benefit obligation at December 31, 2011 by $1.7 million and at December 31, 2010 by $1.8 million. A one percent decrease in the assumed health care cost trend rate would decrease the postretirement benefit obligation at December 31, 2011 by $1.5 million and at December 31, 2010 by $1.6 million.

Funded Status

Millions of Dollars	Pension Benefits					Other Postretirement Benefits
December 31,	2011			2010		2011			2010
Fair value of plan assets	$	755.0		$	817.2	—			—
Benefit obligations	830.1			811.8		$	226.1		$	213.5
Funded status - asset (liability)	$	(75.1	)	$	5.4	$	(226.1	)	$	(213.5	)

Amounts recognized on the consolidated balance sheets consist of:

Millions of Dollars	Pension Benefits					Other Postretirement Benefits
December 31,	2011			2010		2011			2010
Noncurrent asset	—			$	5.4	—			—
Current liability	—			—		$	(10.5	)	$	(11.4	)
Noncurrent liability	$	(75.1	)	—		(215.6		)	(202.1		)

Amounts recognized in accumulated other comprehensive income (a component of common equity) as of December 31, 2011 and 2010 were as follows:

Millions of Dollars	Pension Benefits				Other Postretirement Benefits
December 31,	2011		2010		2011		2010
Net actuarial loss	$	9.6	$	7.1	$	1.7	$	1.3
Prior service cost	1.2		1.4		0.1		0.2
Transition obligation	—		—		0.2		0.3
Total	$	10.8	$	8.5	$	2.0	$	1.8

In connection with the joint ownership of Summer Station, as of December 31, 2011 and 2010, the Company recorded within deferred debits $19.7 million and $13.0 million, respectively, attributable to Santee Cooper’s portion of shared pension costs. As of December 31, 2011 and 2010, the Company also recorded within deferred debits $11.4 million and $10.7 million, respectively, from Santee Cooper, representing its portion of the unfunded net postretirement benefit obligation.

Changes in Fair Value of Plan Assets

	Pension Benefits
Millions of dollars	2011			2010
Fair value of plan assets, January 1	$	817.2		$	758.9
Actual return on plan assets	(18.3		)	96.7
Benefits paid	(43.9		)	(38.4		)
Fair value of plan assets, December 31	$	755.0		$	817.2

Investment Policies and Strategies

The assets of the pension plan are invested in accordance with the objectives of (1) fully funding the actuarial accrued liability for the pension plan, (2) maximizing return within reasonable and prudent levels of risk in order to minimize contributions, and (3) maintaining sufficient liquidity to meet benefit payment obligations on a timely basis. The pension plan operates with several risk and control procedures, including ongoing reviews of liabilities, investment objectives, investment managers and performance expectations. Transactions involving certain types of investments are prohibited. Equity securities held by the pension plan during the periods presented did not include SCANA common stock.

The Company’s pension plan asset allocation at December 31, 2011 and 2010 and the target allocation for 2012 are as follows:

	Percentage of Plan Assets
	Target Allocation		At December 31,
Asset Category	2012		2011		2010
Equity Securities	65	%	65	%	68	%
Debt Securities	35	%	35	%	32	%

For 2012, the expected long-term rate of return on assets will be 8.25%. In developing the expected long-term rate of return assumptions, management evaluates the pension plan’s historical cumulative actual returns over several periods, and assumes an asset allocation of 65% with equity managers and 35% with fixed income managers. Management regularly reviews such allocations and periodically rebalances the portfolio when considered appropriate.

Fair Value Measurements

Assets held by the pension plan are measured at fair value as described below. Assets are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. At December 31, 2011 and 2010, fair value measurements, and the level within the fair value hierarchy in which the measurements fall, were as follows:

			Fair Value Measurements at Reporting Date Using
Millions of dollars	Total		Quoted Market Prices in Active Market for Identical Assets/Liabilities (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Other Unobservable Inputs (Level 3)
December 31, 2011
Common stock	$	324	$	324
Preferred stock	1		1
Mutual funds	183		20		$	163
Short-term investment vehicles	23				23
Government agency securities	32				32
Corporate debt securities	51				51
Loans secured by mortgages	12				12
Municipals	4				4
Common collective trusts	37				37
Limited partnerships	23				23
Multi-strategy hedge funds	65						$	65
	$	755	$	345	$	345	$	65
December 31, 2010
Common stock	$	363	$	363
Mutual funds	206		25		$	181
Short-term investment vehicles	18				18
Government agency securities	51				51
Corporate debt securities	51				51
Loans secured by mortgages	9				9
Municipals	3				3
Common collective trusts	45				45
Limited partnerships	26		1		25
Multi-strategy hedge funds	45						$	45
	$	817	$	389	$	383	$	45

The Pension Plan values common stock and certain mutual funds, where applicable, using unadjusted quoted prices from a national stock exchange, such as NYSE and NASDAQ, where the securities are actively traded. Other mutual funds, common collective trusts and limited partnerships are valued using the observable prices of the underlying fund assets based on trade data for identical or similar securities or from a national stock exchange for similar assets or broker quotes. Short-term investment vehicles are funds that invest in short-term fixed income instruments and are valued using observable prices of the underlying fund assets based on trade data for identical or similar securities. Government agency securities are valued using quoted market prices or based on models using observable inputs from market sources such as external prices or spreads or benchmarked thereto. Corporate debt securities and municipals are valued based on recently executed transactions, using quoted market prices, or based on models using observable inputs from market sources such as external prices or spreads or benchmarked thereto. Loans secured by mortgages are valued using observable prices based on trade data for identical or comparable instruments. Hedge funds are invested in a hedge fund of funds partnership that invests directly in multiple hedge fund strategies that are not traded on exchanges and do not trade on a daily basis. The valuation of this multi-strategy hedge fund is estimated based on the net asset value of the underlying hedge fund strategies using consistent valuation guidelines that account for variations that may impact their fair value. The estimated fair value is the price at which redemptions and subscriptions occur.

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
Millions of dollars	2011			2010
Beginning Balance	$	45		$	14
Unrealized gains (losses) included in changes in net assets	(1		)	2
Purchases, issuances, and settlements	21			29
Transfers in or out of Level 3	—			—
Ending Balance	$	65		$	45

Expected Cash Flows

The total benefits expected to be paid from the pension plan or from the Company’s assets for the other postretirement benefits plan, respectively, are as follows:

Expected Benefit Payments

			Other Postretirement Benefits*
Millions of dollars	Pension Benefits		Excluding Medicare Subsidy		Including Medicare Subsidy
2012	$	73.4	$	11.1	$	10.8
2013	66.8		11.8		11.5
2014	61.8		12.6		12.3
2015	63.3		13.4		13.1
2016	65.5		14.0		13.7
2017 - 2021	315.5		78.6		77.3

*              Net of participant contributions

Pension Plan Contributions

The pension trust is adequately funded under current regulations. No contributions have been required since 1997, and the Company does not anticipate making significant contributions to the pension plan until after 2012.

Net Periodic Benefit Cost (Income)

The Company records net periodic benefit cost (income) utilizing beginning of the year assumptions. Disclosures required for these plans are set forth in the following tables.

Components of Net Periodic Benefit Cost

	Pension Benefits									Other Postretirement Benefits
Millions of dollars	2011			2010			2009			2011		2010		2009
Service cost	$	18.3		$	17.9		$	15.5		$	4.3	$	4.2	$	3.7
Interest cost	43.5			44.0			44.9			12.2		11.9		12.3
Expected return on assets	(63.7		)	(61.4		)	(50.8		)	n/a		n/a		n/a
Prior service cost amortization	7.0			7.0			7.0			1.0		1.0		1.0
Amortization of actuarial losses	12.2			16.0			23.4			0.4		—		—
Transition amount amortization	—			—			—			0.7		0.7		0.7
Net periodic benefit cost	$	17.3		$	23.5		$	40.0		$	18.6	$	17.8	$	17.7

In February 2009, SCE&G was granted accounting orders by the SCPSC which allowed it to mitigate a significant portion of increased pension cost by deferring as a regulatory asset the amount of pension cost above that which was included in then current cost of service rates for its retail electric and gas distribution regulated operations. In July 2010, upon the new retail electric base rates becoming effective, SCE&G began deferring, as a regulatory asset, all pension cost related to its regulated retail electric operations that otherwise would have been charged to expense. In November 2010, upon the updated gas rates becoming effective under the RSA, SCE&G began deferring, as a regulatory asset, all pension cost related to its regulated natural gas operations that otherwise would have been charged to expense.

Other changes in plan assets and benefit obligations recognized in other comprehensive income were as follows:

	Pension Benefits									Other Postretirement Benefits
Millions of dollars	2011			2010			2009			2011			2010			2009
Current year actuarial (gain)/loss	$	2.9		$	(26.4	)	$	(10.4	)	$	0.4		$	(0.1	)	$	0.7
Amortization of actuarial losses	(0.4		)	(2.0		)	(3.7		)	—			—			—
Amortization of prior service cost	(0.2		)	(0.1		)	(0.1		)	(0.1		)	—			(0.1		)
Prior service cost OCI adjustment	—			0.8			—			—			—			—
Amortization of transition obligation	—			—			—			(0.1		)	(0.1		)	(0.1)
Total recognized in other comprehensive income	$	2.3		$	(27.7	)	$	(14.2	)	$	0.2		$	(0.2	)	$	0.5

Significant Assumptions Used in Determining Net Periodic Benefit Cost

	Pension Benefits						Other Postretirement Benefits
	2011		2010		2009		2011		2010		2009
Discount rate	5.56	%	5.75	%	6.45	%	5.72	%	5.90	%	6.45	%
Expected return on plan assets	8.25	%	8.50	%	8.50	%	n/a		n/a		n/a
Rate of compensation increase	4.00	%	4.00	%	4.00	%	4.00	%	4.00	%	4.00	%
Health care cost trend rate	n/a		n/a		n/a		8.00	%	8.50	%	8.00	%
Ultimate health care cost trend rate	n/a		n/a		n/a		5.00	%	5.00	%	5.00	%
Year achieved	n/a		n/a		n/a		2017		2017		2015

The estimated amounts to be amortized from accumulated other comprehensive income into net periodic benefit cost in 2012 are as follows:

Millions of Dollars	Pension Benefits		Other Postretirement Benefits
Actuarial loss	$	0.6	—
Prior service cost	0.2		$	0.1
Transition obligation	—		0.1
Total	$	0.8	$	0.2

Other postretirement benefit costs are subject to annual per capita limits pursuant to plan design. As a result, the effect of a one-percent increase or decrease in the assumed health care cost trend rate on total service and interest cost is approximately $100,000.

Stock Purchase Savings Plan

The Company also sponsors a defined contribution plan in which eligible employees may participate. Eligible employees may defer up to 25% of eligible earnings subject to certain limits and may diversify their investments. Employee deferrals are fully vested and nonforfeitable at all times. The Company provides 100% matching contributions up to 6% of an employee’s eligible earnings. Total matching contributions made to the plan for 2011, 2010 and 2009 were $21.8 million, $20.8 million and $21.0 million, respectively, and were made in the form of SCANA common stock.

SOUTH CAROLINA ELECTRIC AND GAS COMPANY

EMPLOYEE BENEFIT PLANS

8.EMPLOYEE BENEFIT PLANS AND EQUITY COMPENSATION PLAN

Pension and Other Postretirement Benefit Plans

SCE&G participates in SCANA’s noncontributory defined benefit pension plan, which covers substantially all regular, full-time employees. SCANA’s policy has been to fund the plan to the extent permitted by applicable federal income tax regulations, as determined by an independent actuary.

SCANA’s pension plan provides benefits under a cash balance formula for employees hired before January 1, 2000 who elected that option and for all employees hired on or after January 1, 2000. Under the cash balance formula, benefits accumulate as a result of compensation credits and interest credits.  Employees hired before January 1, 2000 who elected to remain under the final average pay formula earn benefits based on years of credited service and the employee’s average annual base earnings received during the last three years of employment.

In addition to pension benefits, SCE&G participates in SCANA’s unfunded postretirement health care and life insurance programs which provide benefits to certain active and retired employees. Retirees share in a portion of their medical care cost. SCANA provides life insurance benefits to retirees at no charge. The costs of postretirement benefits other than pensions are accrued during the years the employees render the services necessary to be eligible for these benefits.

Changes in Benefit Obligations

The measurement date used to determine pension and other postretirement benefit obligations is December 31. Data related to the changes in the projected benefit obligation for retirement benefits and the accumulated benefit obligation for other postretirement benefits are presented below.

	Pension Benefits						Other Postretirement Benefits
Millions of dollars	2011			2010			2011			2010
Benefit obligation, January 1	$	687.8		$	667.4		$	171.5		$	171.4
Service cost	14.7			14.0			3.4			3.2
Interest cost	37.0			41.2			9.6			9.3
Plan participants’ contributions	—			—			2.5			2.4
Actuarial (gain) loss	2.6			(0.6		)	5.6			(1.1		)
Benefits paid	(37.1		)	(34.2		)	(11.2		)	(11.4		)
Amounts funded to parent	—			—			(3.0		)	(2.3		)
Benefit obligation, December 31	$	705.0		$	687.8		$	178.4		$	171.5

The accumulated benefit obligation for retirement benefits was $666.7 million at the end of 2011 and $649.0 million at the end of 2010. The accumulated retirement benefit obligation differs from the projected retirement benefit obligation above in that it reflects no assumptions about future compensation levels.

Significant assumptions used to determine the above benefit obligations are as follows:

	Pension Benefits				Other Postretirement Benefits
	2011		2010		2011		2010
Annual discount rate used to determine benefit obligation	5.25	%	5.56	%	5.35	%	5.72	%
Assumed annual rate of future salary increases for projected benefit obligation	4.00	%	4.00	%	4.00	%	4.00	%

An 8.2% annual rate of increase in the per capita cost of covered health care benefits was assumed for 2012. The rate was assumed to decrease gradually to 5.0% for 2020 and to remain at that level thereafter.

A one percent increase in the assumed health care cost trend rate would increase the postretirement benefit obligation at December 31, 2011 by $1.4 million and at December 31, 2010 by $1.4 million. A one percent decrease in the assumed health care cost trend rate would decrease the postretirement benefit obligation at December 31, 2011 by $1.2 million and at December 31, 2010 by $1.3 million.

Funded Status

Millions of Dollars	Pension Benefits					Other Postretirement Benefits
December 31,	2011			2010		2011			2010
Fair value of plan assets	$	695.3		$	745.2	—			—
Benefit obligations	705.0			687.8		$	178.4		$	171.5
Funded status (liability)	$	(9.7	)	$	57.4	$	(178.4	)	$	(171.5	)

Amounts recognized on the consolidated balance sheets consist of:

Millions of Dollars	Pension Benefits					Other Postretirement Benefits
December 31,	2011			2010		2011			2010
Noncurrent asset	—			$	57.4	—			—
Current liability	—			—		$	(8.3	)	$	(8.9	)
Noncurrent liability	$	(9.7	)	—		(170.1		)	(162.6		)

Amounts recognized in accumulated other comprehensive income (a component of common equity) as of December 31, 2011 and 2010 were as follows:

Millions of Dollars	Pension Benefits				Other Postretirement Benefits
December 31,	2011		2010		2011		2010
Net actuarial loss	$	2.4	$	1.8	$	0.4	$	0.3
Prior service cost	0.3		0.4		0.1		0.1
Total	$	2.7	$	2.2	$	0.5	$	0.4

In connection with the joint ownership of Summer Station, as of December 31, 2011 and 2010, SCE&G recorded within deferred debits $19.7 million and $13.0 million, respectively, attributable to Santee Cooper’s portion of shared pension costs. As of December 31, 2011 and 2010, SCE&G also recorded within deferred debits $11.4 million and $10.7 million, respectively, from Santee Cooper, representing its portion of the unfunded net postretirement benefit obligation.

Changes in Fair Value of Plan Assets

	Pension Benefits
Millions of dollars	2011			2010
Fair value of plan assets, January 1	$	745.2		$	660.7
Actual return on plan assets	(12.8		)	118.7
Benefits paid	(37.1		)	(34.2		)
Fair value of plan assets, December 31	$	695.3		$	745.2

Investment Policies and Strategies

The assets of the pension plan are invested in accordance with the objectives of (1) fully funding the actuarial accrued liability for the pension plan, (2) maximizing return within reasonable and prudent levels of risk in order to minimize contributions, and (3) maintaining sufficient liquidity to meet benefit payment obligations on a timely basis. The pension plan operates with several risk and control procedures, including ongoing reviews of liabilities, investment objectives, investment managers and performance expectations. Transactions involving certain types of investments are prohibited. Equity securities held by the pension plan during the periods presented did not include SCANA common stock.

The pension plan asset allocation at December 31, 2011 and 2010 and the target allocation for 2012 are as follows:

	Percentage of Plan Assets
	Target Allocation		At December 31,
Asset Category	2012		2011		2010
Equity Securities	65	%	65	%	68	%
Debt Securities	35	%	35	%	32	%

For 2012, the expected long-term rate of return on assets will be 8.25%.  In developing the expected long-term rate of return assumptions, management evaluates the pension plan’s historical cumulative actual returns over several periods, and assumes an asset allocation of 65% with equity managers and 35% with fixed income managers. Management regularly reviews such allocations and periodically rebalances the portfolio when considered appropriate.

Fair Value Measurements

Assets held by the pension plan are measured at fair value as described below. Assets are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. At December 31, 2011 and 2010, fair value measurements, and the level within the fair value hierarchy in which the measurements fall, were as follows:

			Fair Value Measurements at Reporting Date Using
Millions of dollars	December 31, 2011		Quoted Market Prices in Active Market for Identical Assets/Liabilities (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Other Unobservable Inputs (Level 3)
December 31, 2011
Common stock	$	298	$	298
Preferred stock	1		1
Mutual funds	169		19		$	150
Short-term investment vehicles	21				21
Government agency securities	29				29
Corporate debt securities	47				47
Loans secured by mortgages	11				11
Municipals	4				4
Common collective trusts	34				34
Limited partnerships	21				21
Multi-strategy hedge funds	60						$	60
	$	695	$	318	$	317	$	60
December 31, 2010
Common stock	$	331	$	331
Mutual funds	187		22		$	165
Short-term investment vehicles	17				17
Government agency securities	47				47
Corporate debt securities	46				46
Loans secured by mortgages	8				8
Municipals	3				3
Common collective trusts	41				41
Limited partnerships	24		1		23
Multi-strategy hedge funds	41						$	41
	$	745	$	354	$	350	$	41

The Pension Plan values common stock and certain mutual funds, where applicable, using unadjusted quoted prices from a national stock exchange, such as NYSE and NASDAQ, where the securities are actively traded. Other mutual funds, common collective trusts and limited partnerships are valued using the observable prices of the underlying fund assets based on trade data for identical or similar securities or from a national stock exchange for similar assets or broker quotes. Short-term investment vehicles are funds that invest in short-term fixed income instruments and are valued using observable prices of the underlying fund assets based on trade data for identical or similar securities. Government agency securities are valued using quoted market prices or based on models using observable inputs from market sources such as external prices or spreads or benchmarked thereto. Corporate debt securities and municipals are valued based on recently executed transactions, using quoted market prices, or based on models using observable inputs from market sources such as external prices or spreads or benchmarked thereto. Loans secured by mortgages are valued using observable prices based on trade data for identical or comparable instruments. Hedge funds are invested in a hedge fund of funds partnership that invests directly in multiple hedge fund strategies that are not traded on exchanges and do not trade on a daily basis. The valuation of this multi-strategy hedge fund is estimated based on the net asset value of the underlying hedge fund strategies using consistent valuation guidelines that account for variations that may impact their fair value. The estimated fair value is the price at which redemptions and subscriptions occur.

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
Millions of dollars	2011			2010
Beginning Balance	$	41		$	12
Unrealized gains (losses) included in changes in net assets	(1		)	2
Purchases, issuances, and settlements	20			27
Transfers in or out of Level 3	—			—
Ending Balance	$	60		$	41

Expected Cash Flows

The total benefits expected to be paid from the pension plan or from SCE&G’s assets for the other postretirement benefits plan, respectively, are as follows:

Expected Benefit Payments

			Other Postretirement Benefits*
Millions of dollars	Pension Benefits		Excluding Medicare Subsidy		Including Medicare Subsidy
2012	$	73.4	$	8.7	$	8.4
2013	66.8		9.2		9.0
2014	61.8		9.9		9.7
2015	63.3		10.5		10.2
2016	65.5		11.0		10.8
2017 - 2021	315.5		61.5		60.5

*Net of participant contributions

Pension Plan Contributions

The pension trust is adequately funded under current regulations. No contributions have been required since 1997, and SCE&G does not anticipate making significant contributions to the pension plan until after 2012.

Net Periodic Benefit Cost (Income)

SCE&G records net periodic benefit cost (income) utilizing beginning of the year assumptions. Disclosures required for these plans are set forth in the following tables.

Components of Net Periodic Benefit Cost

	Pension Benefits									Other Postretirement Benefits
Millions of dollars	2011			2010			2009			2011			2010			2009
Service cost	$	14.7		$	14.0		$	11.9		$	3.4		$	3.2		$	2.8
Interest cost	37.0			41.2			42.0			9.6			9.3			9.5
Expected return on assets	(54.2		)	(58.0		)	(48.2		)	n/a			n/a			n/a
Prior service cost amortization	6.0			6.6			6.6			0.8			0.8			0.8
Amortization of actuarial losses	10.4			15.1			22.3			0.3			—			—
Transition amount amortization	—			—			—			(0.1		)	(0.1		)	(0.1		)
Net periodic benefit cost	$	13.9		$	18.9		$	34.6		$	14.0		$	13.2		$	13.0

In February 2009, SCE&G was granted accounting orders by the SCPSC which allowed it to mitigate a significant portion of increased pension cost by deferring as a regulatory asset the amount of pension cost above that which was included in then current cost of service rates for its retail electric and gas distribution regulated operations. In July 2010, upon the new retail electric base rates becoming effective, SCE&G began deferring, as a regulatory asset, all pension cost related to its regulated retail electric operations that otherwise would have been charged to expense. In November 2010, upon the updated gas rates becoming effective under the RSA, SCE&G began deferring, as a regulatory asset, all pension cost related to its regulated natural gas operations that otherwise would have been charged to expense.

Other changes in plan assets and benefit obligations recognized in other comprehensive income were as follows:

	Pension Benefits									Other Postretirement Benefits
Millions of dollars	2011			2010			2009			2011		2010			2009
Current year actuarial (gain)/loss	$	0.7		$	(28.9	)	$	(9.8	)	$	0.1	$	—		$	0.1
Amortization of actuarial losses	(0.1		)	(1.8		)	(3.6		)	—		—			—
Amortization of prior service cost	(0.1		)	—			—			—		—			—
Prior service cost OCI adjustment	—			0.4			—			—		—			—
Amortization of transition obligation	—			—			—			—		(0.1		)	—
Total recognized in other comprehensive income	$	0.5		$	(30.3	)	$	(13.4	)	$	0.1	$	(0.1	)	$	0.1

Significant Assumptions Used in Determining Net Periodic Benefit Cost

	Pension Benefits						Other Postretirement Benefits
	2011		2010		2009		2011			2010		2009
Discount rate	5.56	%	5.75	%	6.45	%	$	5.72	%	5.90	%	6.45	%
Expected return on plan assets	8.25	%	8.50	%	8.50	%	n/a			n/a		n/a
Rate of compensation increase	4.00	%	4.00	%	4.00	%	4.00		%	4.00	%	4.00	%
Health care cost trend rate	n/a		n/a		n/a		8.00		%	8.50	%	8.00	%
Ultimate health care cost trend rate	n/a		n/a		n/a		5.00		%	5.00	%	5.00	%
Year achieved	n/a		n/a		n/a		2017			2017		2015

The estimated amounts to be amortized from accumulated other comprehensive income into net periodic benefit cost in 2012 are as follows:

Millions of Dollars	Pension Benefits		Other Postretirement Benefits
Actuarial loss	$	0.1	—
Prior service cost	0.1		—
Total	$	0.2	—

Other postretirement benefit costs are subject to annual per capita limits pursuant to plan design. As a result, the effect of a one-percent increase or decrease in the assumed health care cost trend rate on total service and interest cost is less than $100,000.

Stock Purchase Savings Plan

SCE&G participates in a SCANA-sponsored defined contribution plan in which eligible employees may participate. Eligible employees may defer up to 25% of eligible earnings subject to certain limits and may diversify their investments. Employee deferrals are fully vested and nonforfeitable at all times. SCE&G provides 100% matching contributions up to 6% of an employee’s eligible earnings. Total matching contributions made to the plan for 2011, 2010 and 2009 were $17.3 million, $16.6 million and $16.6 million, respectively, and were made in the form of SCANA common stock.