PENSION AND OTHER POSTRETIREMENT BENEFITS

6 Months Ended

Jun. 30, 2016

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

PENSION AND OTHER POSTRETIREMENT BENEFITS

PENSION AND OTHER POSTRETIREMENT BENEFITS:

For the three and six months ended June 30, 2016 and 2015, 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 June 30,						Six Months Ended June 30,
	2016			2015			2016			2015
Service Cost	$	1,106		$	1,225		$	2,421		$	2,668
Interest Cost	3,062			2,814			6,062			5,584
Expected Return on Plan Assets	(3,374		)	(3,695		)	(6,754		)	(7,394		)
Amortizations:
Prior Service Cost	53			53			106			106
Actuarial Loss	2,388			2,648			4,697			5,304
Net Periodic Benefit Cost	3,235			3,045			6,532			6,268
Capitalized Benefit Cost	(1,213		)	(1,194		)	(2,400		)	(2,433		)
Deferred Benefit Cost	(161		)	(325		)	(322		)	(325		)
Total Net Periodic Benefit Expense	$	1,861		$	1,526		$	3,810		$	3,510

	Other Postretirement Benefits
	Three Months Ended June 30,						Six Months Ended June 30,
	2016			2015			2016			2015
Service Cost	$	195		$	231		$	425		$	558
Interest Cost	654			715			1,307			1,487
Expected Return on Plan Assets	(776		)	(749		)	(1,552		)	(1,497		)
Amortizations:
Prior Service Cost	(86		)	152			(172		)	304
Actuarial Loss	261			287			555			671
Net Periodic Benefit Cost	248			636			563			1,523
Capitalized Benefit Cost	(45		)	(271		)	(146		)	(528		)
Deferred Benefit Cost	—			(79		)	—			(79		)
Total Net Periodic Benefit Expense	$	203		$	286		$	417		$	916

Capitalized benefit costs reflected in the table above relate to SJG’s construction program. Deferred benefit costs relate to SJG's deferral of incremental expense associated with the adoption of new mortality tables effective December 31, 2014 and 2015. Deferred benefit costs are expected to be recovered through rates as part of SJG's next base rate case.

SJI contributed $15.0 million to the pension plans in January 2015. No contributions were made to the pension plans during the six months ended June 30, 2016. SJI does not expect to make any contributions to the pension plans in 2016; however, changes in future investment performance and discount rates may ultimately result in a contribution. Payments related to the unfunded supplemental executive retirement plan (SERP) are expected to approximate $2.3 million in 2016. 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, 2015, for additional information related to SJI’s pension and other postretirement benefits.