PENSION AND OTHER POSTRETIREMENT BENEFITS

3 Months Ended

Mar. 31, 2015

Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract]

PENSION AND OTHER POSTRETIREMENT BENEFITS

PENSION AND OTHER POSTRETIREMENT BENEFITS:

For the three months ended March 31, 2015 and 2014, net periodic benefit cost related to the employee and officer pension and other postretirement benefit plans consisted of the following components (in thousands):

	Pension Benefits
	Three Months Ended March 31,
	2015			2014
Service Cost	$	1,443		$	1,285
Interest Cost	2,770			2,695
Expected Return on Plan Assets	(3,699		)	(3,265		)
Amortizations:
Prior Service Cost	53			43
Actuarial Loss	2,656			1,426
Net Periodic Benefit Cost	3,223			2,184
Capitalized Benefit Costs	(1,239		)	(854		)
Total Net Periodic Benefit Expense	$	1,984		$	1,330

	Other Postretirement Benefits
	Three Months Ended March 31,
	2015			2014
Service Cost	$	327		$	250
Interest Cost	771			740
Expected Return on Plan Assets	(748		)	(687		)
Amortizations:
Prior Service Cost	152			38
Actuarial Loss	384			243
Net Periodic Benefit Cost	886			584
Capitalized Benefit Costs	(256		)	(209		)
Total Net Periodic Benefit Expense	$	630		$	375

Capitalized benefit costs reflected in the table above relate to SJG’s construction program.

SJI contributed $15.0 million to the pension plans in January 2015. No contributions were made to the pension plans during 2014. Payments related to the unfunded supplemental executive retirement plan (SERP) are expected to approximate $1.5 million in 2015. SJG also has a regulatory obligation to contribute approximately $3.6 million annually to the other postretirement benefit plans’ trusts, less direct costs incurred. See Note 12 to the Consolidated Financial Statements in Item 8 of SJI’s Annual Report on Form 10-K for the year ended December 31, 2014, for additional information related to SJI’s pension and other postretirement benefits.