PENSION AND OTHER POSTRETIREMENT BENEFITS

6 Months Ended

Jun. 30, 2022

Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract]

PENSION AND OTHER POSTRETIREMENT BENEFITS

PENSION AND OTHER POSTRETIREMENT BENEFITS:

For the three and six months ended June 30, 2022 and 2021, net periodic benefit cost related to the SJI 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,
	2022		2021		2022		2021
Service Cost	$	1,319	$	1,591	$	2,638	$	3,182
Interest Cost	3,415		3,236		6,830		6,472
Expected Return on Plan Assets	(6,201)		(5,834)		(12,402)		(11,668)
Amortizations:
Prior Service Cost	18		25		36		50
Actuarial Loss	1,839		3,194		3,678		6,388
Net Periodic Benefit Cost	390		2,212		780		4,424
Capitalized Benefit Cost	(491)		(566)		(996)		(1,132)
Deferred Benefit Cost (Credit)	334		(316)		668		(632)
Total Net Periodic Benefit Expense	$	233	$	1,330	$	452	$	2,660

	Other Postretirement Benefits
	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Service Cost	$	173	$	212	$	346	$	424
Interest Cost	502		475		1,004		950
Expected Return on Plan Assets	(1,692)		(1,436)		(3,384)		(2,872)
Amortizations:
Prior Service Cost	(156)		(156)		(312)		(312)
Actuarial Loss	35		273		70		546
Net Periodic Benefit Cost	(1,138)		(632)		(2,276)		(1,264)
Capitalized Benefit Cost	(60)		(106)		(120)		(212)
Deferred Benefit Cost	532		336		1,064		673
Total Net Periodic Benefit Expense	$	(666)	$	(402)	$	(1,332)	$	(803)

The Pension Benefits Net Periodic Benefit Cost incurred by SJG was approximately $0.1 million and $1.5 million of the totals presented in the table above for the three months ended June 30, 2022 and 2021, respectively, and $0.2 million and $3.1 million of the totals presented in the table above for the six months ended June 30, 2022 and 2021, respectively. The weighted average expected long term rate of return on plan assets used to determine the net benefit cost was 7.25%.

The Other Postretirement Benefits Net Periodic Benefit Cost incurred by SJG was approximately $(1.1) million and $(0.5) million of the totals presented in the table above for the three months ended June 30, 2022 and 2021, respectively, and $(2.2) million and $(1.0) million of the totals presented in the table above for the six months ended June 30, 2022 and 2021, respectively. The weighted average expected long term rate of return on plan assets used to determine the net benefit cost was 6.75%.

Capitalized benefit costs reflected in the table above relate to the Utilities' construction programs.

No contributions were made to the pension plans by either SJI or SJG during the six months ended June 30, 2022 or 2021. Future pension contributions by SJI cannot be determined at this time. Payments related to the unfunded SERP for SJG are expected to be approximately $3.9 million in 2022.

See Note 12 to the Consolidated Financial Statements in Item 8 of SJI’s and SJG's Annual Report on Form 10-K for the year ended December 31, 2021 for additional information related to SJI’s and SJG's pension and other postretirement benefits.