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Pension and Other Postretirement Benefits
 6 Months Ended
Jun. 30, 2011
Pension and Other Postretirement Benefits  
Pension and Other Postretirement Benefits
14. Pension and Other Postretirement Benefits

NiSource provides defined contribution plans and noncontributory defined benefit retirement plans that cover its employees. Benefits under the defined benefit retirement plans reflect the employees' compensation, years of service and age at retirement. Additionally, NiSource provides health care and life insurance benefits for certain retired employees. The majority of employees may become eligible for these benefits if they reach retirement age while working for NiSource. The expected cost of such benefits is accrued during the employees' years of service. Current rates of rate-regulated companies include postretirement benefit costs, including amortization of the regulatory assets that arose prior to inclusion of these costs in rates. For most plans, cash contributions are remitted to grantor trusts.

NiSource expects to make contributions of approximately $149.7 million to its pension plans and approximately $49.3 million to its postretirement medical and life plans in 2011, which could change depending on market conditions. For the six months ended June 30, 2011, NiSource has contributed $111.0 million to its pension plans and $21.2 million to its other postretirement benefit plans.

The following table provides the components of the plans' net periodic benefits cost for the three and six months ended June 30, 2011 and 2010:

 

      Pension Benefits     Other Postretirement
Benefits		  

Three Months Ended June 30, (in millions)

    2011     2010     2011     2010  

Components of Net Periodic Benefit Cost

         

Service cost

    $ 9.4      $ 9.8      $ 2.5      $ 2.4   

Interest cost

      29.9        31.4        9.6        10.9   

Expected return on assets

      (41.8 )      (35.9 )      (6.7 )      (5.8 ) 

Amortization of transition obligation

      —          —          0.3        0.3   

Amortization of prior service cost

      0.1        0.5        (0.1 )      0.8   

Recognized actuarial loss

      13.9        14.5        1.7        1.5   
                                

Total Net Periodic Benefit Costs

    $ 11.5      $ 20.3      $ 7.3      $ 10.1   
                                
      Pension Benefits     Other Postretirement
Benefits		  

Six Months Ended June 30, (in millions)

    2011     2010     2011     2010  

Components of Net Periodic Benefit Cost

         

Service cost

    $ 18.8      $ 19.5      $ 5.0      $ 4.8   

Interest cost

      59.8        62.8        19.2        21.3   

Expected return on assets

      (83.6 )      (71.8 )      (13.4 )      (11.7 ) 

Amortization of transition obligation

      —          —          0.6        0.6   

Amortization of prior service cost

      0.2        1.0        (0.2 )      0.7   

Recognized actuarial loss

      27.8        29.0        3.4        3.0   
                                

Total Net Periodic Benefit Costs

    $ 23.0      $ 40.5      $ 14.6      $ 18.7   
                                

For the quarters ended June 30, 2011 and 2010, pension and other postretirement benefit cost of approximately $1.7 million and $4.0 million, respectively, was capitalized as a component of plant or recognized as a regulatory asset or liability consistent with regulatory orders for certain of NiSource's regulated businesses. For the six months ended June 30, 2011 and 2010, pension and other postretirement benefit cost of approximately $8.8 million and $7.1 million, respectively, was capitalized as a component of plant or recognized as a regulatory asset or liability consistent with regulatory orders for certain of NiSource's regulated business.