PENSION AND OTHER POSTRETIREMENT BENEFITS (Tables)

12 Months Ended

Dec. 31, 2015

Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]

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
	2015			2014			2013
Service Cost	$	5,337		$	4,510		$	5,421
Interest Cost	11,168			10,735			9,439
Expected Return on Plan Assets	(14,789		)	(13,491		)	(11,914		)
Amortizations:
Prior Service Cost	212			175			251
Actuarial Loss	10,608			5,716			9,006
Net Periodic Benefit Cost	12,536			7,645			12,203
Capitalized Benefit Costs	(4,805		)	(3,047		)	(5,002		)
Deferred Benefit Costs	(1,007		)	—			—
Total Net Periodic Benefit Expense	$	6,724		$	4,598		$	7,201



	Other Postretirement Benefits
	2015			2014			2013
Service Cost	$	1,116		$	891		$	1,139
Interest Cost	2,973			2,852			2,730
Expected Return on Plan Assets	(2,993		)	(2,603		)	(2,378		)
Amortizations:
Prior Service Cost (Credits)	608			152			(283		)
Actuarial Loss	1,342			974			1,738
Net Periodic Benefit Cost	3,046			2,266			2,946
Capitalized Benefit Costs	(1,043		)	(722		)	(1,172		)
Deferred Benefit Costs	(256		)	—			—
Total Net Periodic Benefit Expense	$	1,747		$	1,544		$	1,774

Schedule Defined Benefit Plans, Changes in Regulatory Assets and Accumulated Other Comprehensive Income (Loss)

Details of the activity within the Regulatory Asset and Accumulated Other Comprehensive Loss associated with Pension and Other Postretirement Benefits are as follows (in thousands):



	Regulatory Assets						Accumulated Other Comprehensive Loss (pre-tax)
	Pension Benefits			Other Postretirement Benefits			Pension Benefits			Other Postretirement Benefits
Balance at January 1, 2014	$	42,632		$	16,652		$	27,574		$	3,710

Amounts Arising during the Period:
Net Actuarial Loss	31,075			7,826			14,698			2,269
Prior Service Cost	486			4,146			14			981
Amounts Amortized to Net Periodic Costs:
Net Actuarial Loss	(2,841		)	(628		)	(2,819		)	(187		)
Prior Service (Cost) Credit	(175		)	(133		)	1			(18		)

Balance at December 31, 2014	71,177			27,863			39,468			6,755

Amounts Arising during the Period:
Net Actuarial (Loss)/Gain	(463		)	(3,155		)	59			(2,285		)
Prior Service Credit	—			(499		)	—			(106		)
Amounts Amortized to Net Periodic Costs:
Net Actuarial Loss	(6,079		)	(1,107		)	(4,452		)	(221		)
Prior Service Cost	(203		)	(7,755		)	(9		)	(2,081		)

Balance at December 31, 2015	$	64,432		$	15,347		$	35,066		$	2,062

Schedule of Amounts in Regulatory Assets to be Recognized over Next Fiscal Year

The estimated costs that will be amortized from Regulatory Assets into net periodic benefit costs in 2016 are as follows (in thousands):



	Pension Benefits		Other Postretirement Benefits
Prior Service Cost/(Credit)	$	203	$	(257	)
Net Actuarial Loss	$	5,488	$	998

Schedule of Amounts in Accumulated Other Comprehensive Income (Loss) to be Recognized over Next Fiscal Year

The estimated costs that will be amortized from Accumulated Other Comprehensive Loss into net periodic benefit costs in 2016 are as follows (in thousands):



	Pension Benefits		Other Postretirement Benefits
Prior Service Cost/(Credit)	$	9	$	(88	)
Net Actuarial Loss	$	3,747	$	179

Schedule of Net Funded Status and Amounts Recognized in Balance Sheet

A reconciliation of the plans' benefit obligations, fair value of plan assets, funded status and amounts recognized in SJI's consolidated balance sheets follows (in thousands):



	Pension Benefits						Other Postretirement Benefits
	Pension Benefits						Other Postretirement Benefits
	2015			2014			2015			2014
Change in Benefit Obligations:
Benefit Obligation at Beginning of Year	$	265,434		$	216,395		$	75,592		$	62,355
Service Cost	5,337			4,510			1,116			891
Interest Cost	11,168			10,735			2,973			2,852
Actuarial (Gain) Loss	(17,349		)	42,746			(8,591		)	8,151
Retiree Contributions	—			—			700			488
Plan Amendments	—			550			(9,899		)	5,143
Benefits Paid	(10,395		)	(9,502		)	(4,461		)	(4,288		)
Benefit Obligation at End of Year	$	254,195		$	265,434		$	57,430		$	75,592

Change in Plan Assets:
Fair Value of Plan Assets at Beginning of Year	$	180,523		$	178,093		$	43,222		$	41,653
Actual Return on Plan Assets	(2,321		)	10,397			(423		)	596
Employer Contributions	17,017			1,535			8,721			4,773
Retiree Contributions	—			—			700			488
Benefits Paid	(10,395		)	(9,502		)	(4,461		)	(4,288		)
Fair Value of Plan Assets at End of Year	$	184,824		$	180,523		$	47,759		$	43,222


Funded Status at End of Year:	$	(69,371	)	$	(84,911	)	$	(9,671	)	$	(32,370	)
Amounts Related to Unconsolidated Affiliate	204			57			509			301
Accrued Net Benefit Cost at End of Year	$	(69,167	)	$	(84,854	)	$	(9,162	)	$	(32,069	)

Amounts Recognized in the Statement of Financial Position Consist of:
Current Liabilities	$	(2,261	)	$	(1,550	)	$	—		$	—
Noncurrent Liabilities	(66,906		)	(83,304		)	(9,162		)	(32,069		)
Net Amount Recognized at End of Year	$	(69,167	)	$	(84,854	)	$	(9,162	)	$	(32,069	)

Amounts Recognized in Regulatory Assets Consist of:
Prior Service Costs	$	741		$	944		$	(3,289	)	$	4,965
Net Actuarial Loss	63,691			70,233			18,636			22,898
	$	64,432		$	71,177		$	15,347		$	27,863

Amounts Recognized in Accumulated Other Comprehensive Loss Consist of (pre-tax):
Prior Service Costs	$	77		$	86		$	(1,074	)	$	1,113
Net Actuarial Loss	34,989			39,382			3,136			5,642
	$	35,066		$	39,468		$	2,062		$	6,755

Schedule of Assumptions Used

The weighted-average assumptions used to determine benefit obligations at December 31 were:



	Pension Benefits				Other Postretirement Benefits
	2015		2014		2015		2014
Discount Rate	4.83	%	4.25	%	4.73	%	4.20	%
Rate of Compensation Increase	3.50	%	3.50	%	3.50	%	3.50	%

The weighted-average assumptions used to determine net periodic benefit cost for years ended December 31 were:



	Pension Benefits						Other Postretirement Benefits
	2015		2014		2013		2015		2014		2013
Discount Rate	4.25	%	5.09	%	4.26	%	4.20	%	4.91	%	4.14	%
Expected Long-Term Return on Plan Assets	7.75	%	7.75	%	7.50	%	6.25	%	6.25	%	6.60	%
Rate of Compensation Increase	3.50	%	3.50	%	3.25	%	3.50	%	3.50	%	3.25	%

Schedule of Health Care Cost Trend Rates

The assumed health care cost trend rates at December 31 were:



	2015	2014
Medical Care and Drug Cost Trend Rate Assumed for Next Year	N/A	7.00	%
Dental Care Cost Trend Rate Assumed for Next Year	N/A	4.75	%
Rate to which Cost Trend Rates are Assumed to Decline (the Ultimate Trend Rate)	N/A	4.75	%
Year that the Rate Reaches the Ultimate Trend Rate	N/A	2023

Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates

A one-percentage-point change in assumed health care cost trend rates would have the following effects (in thousands):



	1-Percentage- Point Increase		1-Percentage- Point Decrease
Effect on the Total of Service and Interest Cost	$	199	$	(160	)

Schedule of Effect of Significant Unobservable Inputs, Changes in Plan Assets

Fair Value Measurement Using Significant

Unobservable Inputs (Level 3)

(In thousands)



	Guaranteed						Private
	Insurance			Hedge			Equity			Real
	Contract			Funds			Funds			Estate		Total

Balance at January 1, 2014	$	11,322		$	4,154		$	3,046		$	6,741	$	25,263
Actual return on plan assets:
Relating to assets still held at the reporting date	498			177			(24		)	735		1,386
Relating to assets sold during the period	13			—			325			—		338
Purchases, Sales and Settlements	(921		)	—			269			—		(652		)
Balance at December 31, 2014	10,912			4,331			3,616			7,476		26,335
Actual return on plan assets:
Relating to assets still held at the reporting date	(106		)	(172		)	(302		)	1,039		459
Relating to assets sold during the period	25			—			429			—		454
Purchases, Sales and Settlements	(871		)	—			569			—		(302		)
Balance at December 31, 2015	$	9,960		$	4,159		$	4,312		$	8,515	$	26,946

Schedule of Expected Benefit Payments

The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid during the following years (in thousands):



	Pension Benefits		Other Postretirement Benefits
2016	$	11,409	$	4,458
2017	$	11,846	$	4,427
2018	$	12,376	$	4,363
2019	$	13,374	$	4,406
2020	$	13,954	$	4,519
2021 - 2024	$	82,139	$	21,933

Pension Benefits [Member]

Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]

Schedule of Allocation of Plan Assets

The fair values of SJI's pension plan assets at December 31, 2015 and 2014 by asset category are as follows (in thousands):



Asset Category	Total		Level 1		Level 2		Level 3
As of December 31, 2015
Cash / Cash Equivalents:
Cash	$	35	$	35	$	—	$	—
Common/Collective Trust Funds (a)	858		—		858		—
STIF-Type Instrument (b)	1,360		—		1,360		—
Equity securities:
Common/Collective Trust Funds - U.S. (a)	52,058		—		52,058		—
Common/Collective Trust Funds - International (a)	33,236		—		33,236		—
U.S. Large-Cap (c)	14,305		14,305		—		—
U.S. Mid-Cap (c)	3,407		3,407		—		—
U.S. Small-Cap (c)	260		260		—		—
International (c)	1,695		1,695		—		—
Fixed Income:
Common/Collective Trust Funds (a)	50,664		—		50,664		—
Guaranteed Insurance Contract (d)	9,960		—		—		9,960
Hedge Funds (e)	4,159		—		—		4,159
Other types of investments:
Private Equity Fund (f)	4,312		—		—		4,312
Common/Collective Trust Fund - Real Estate (g)	8,515		—		—		8,515
Total	$	184,824	$	19,702	$	138,176	$	26,946



Asset Category	Total		Level 1		Level 2		Level 3
As of December 31, 2014
Cash / Cash Equivalents:
Common/Collective Trust Funds (a)	$	692	$	—	$	692	$	—
STIF-Type Instrument (b)	1,252		—		1,252		—
Equity securities:
Common/Collective Trust Funds - U.S. (a)	51,197		—		51,197		—
Common/Collective Trust Funds - International (a)	30,963		—		30,963		—
U.S. Large-Cap (c)	12,961		12,961		—		—
U.S. Mid-Cap (c)	5,147		5,147		—		—
U.S. Small-Cap (c)	232		232		—		—
International (c)	3,369		3,369		—		—
Fixed Income:
Common/Collective Trust Funds (a)	48,375		—		48,375		—
Guaranteed Insurance Contract (d)	10,912		—		—		10,912
Hedge Funds (e)	4,331		—		—		4,331
Other types of investments:
Private Equity Fund (f)	3,616		—		—		3,616
Common/Collective Trust Fund - Real Estate (g)	7,476		—		—		7,476
Total	$	180,523	$	21,709	$	132,479	$	26,335

(a)

This category represents common/collective trust fund investments through a commingled employee benefit trust (excluding real estate). These commingled funds are not traded publicly; however, the majority of the underlying assets held in these funds are stocks and bonds that are traded on active markets and prices for these assets are readily observable. Also included in these funds are interest rate swaps, asset-backed securities, mortgage-backed securities and other investments with observable market values. Holdings in these commingled funds are classified as Level 2 investments.

(b)

This category represents short-term investment funds held for the purpose of funding disbursement payment arrangements. Underlying assets are valued based on quoted prices in active markets, or where quoted prices are not available, based on models using observable market information. Since not all values can be obtained from quoted prices in active markets, these funds are classified as Level 2 investments.


(c)	This category of equity investments represents a managed portfolio of common stock investments in five sectors: telecommunications, electric utilities, gas utilities, water and energy. These common stocks are actively traded on exchanges and price quotes for these shares are readily available. These common stocks are classified as Level 1 investments.

(d)

This category represents SJI's Group Annuity contracts with a nationally recognized life insurance company. The contracts are the assets of the plan, while the underlying assets of the contracts are owned by the contract holder. Valuation is based on a formula and calculation specified within the contract. Since the valuation is based on the reporting entity's own assumptions, these contracts are classified as Level 3 investments.


(e)	This category represents a collection of underlying funds which are all domiciled outside of the United States. All of the underlying fund managers are based in the U.S.; however, they do not necessarily trade only in U.S. markets. The fair value of these funds is determined by the underlying fund's general partner or manager. These funds are classified as Level 3 investments.

(f)

This category represents a limited partnership/commingled trust which includes several investments in U.S. leveraged buyout, venture capital, and special situation funds. Fund valuations are reported on a 90 to 120 day lag and, therefore, the value reported herein represents the market value as of June 30 or September 30, 2015 and 2014, respectively, with cash flow changes through December applied. The fund's investments are stated at fair value, which is generally based on the valuations provided by the general partners or managers of such investments. Fund investments are illiquid and resale is restricted. These funds are classified as Level 3 investments.

(g)

This category represents real estate common/collective trust fund investments through a commingled employee benefit trust. These commingled funds are part of a direct investment in a pool of real estate properties. These funds are valued by investment managers on a periodic basis using pricing models that use independent appraisals from sources with professional qualifications. Since these valuation inputs are not highly observable, the real estate funds are classified as Level 3 investments.