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PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS (Tables) | 12 Months Ended
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Sep. 30, 2014
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] |
Fair value measurements of plan assets | The table below categorizes the fair value measurements of the Laclede Group's pension plan assets:
($ Millions) | Quoted Prices in Active Markets (Level 1) |  | Significant Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3) |  | Total
As of September 30, 2014 |  |  |  |  |  |  |
Cash and cash equivalents | $ | 8.6 |  |  | $ | 1.6 |  |  | $ | — |  |  | $ | 10.2 |
Stock/Bond mutual fund | 54.2 |  |  | 74.7 |  |  | 9.3 |  |  | 138.2 |
Debt Securities |  |  |  |  |  |  |
US bond mutual funds | 73.6 |  |  | — |  |  | — |  |  | 73.6 |
US government | — |  |  | 64.5 |  |  | — |  |  | 64.5 |
US corporate | — |  |  | 164.0 |  |  | — |  |  | 164.0 |
US municipal | — |  |  | 8.2 |  |  | — |  |  | 8.2 |
International | — |  |  | 35.5 |  |  | — |  |  | 35.5 |
Alternative | — |  |  | 13.4 |  |  | — |  |  | $ | 13.4 |
Derivative instruments (a) | — |  |  | (1.0 | ) |  | — |  |  | (1.0 | )
Total | $ | 136.4 |  |  | $ | 360.9 |  |  | $ | 9.3 |  |  | $ | 506.6 |
As of September 30, 2013 |  |  |  |  |  |  |
Cash and cash equivalents | $ | 18.2 |  |  | $ | — |  |  | $ | — |  |  | $ | 18.2 |
Stock/Bond mutual fund | — |  |  | 115.8 |  |  | — |  |  | $ | 115.8 |
Debt Securities |  |  |  |  |  |  |
US bond mutual funds | 17.7 |  |  | — |  |  | — |  |  | $ | 17.7 |
US government | — |  |  | 55.7 |  |  | — |  |  | $ | 55.7 |
US corporate | — |  |  | 110.9 |  |  | — |  |  | $ | 110.9 |
US municipal | — |  |  | 6.8 |  |  | — |  |  | $ | 6.8 |
International | — |  |  | 21.6 |  |  | — |  |  | $ | 21.6 |
Derivative instruments (b) | — |  |  | (1.3 | ) |  | — |  |  | $ | (1.3 | )
Total | $ | 35.9 |  |  | $ | 309.5 |  |  | $ | — |  |  | $ | 345.4 |
(a) | Derivative assets of $2.9 net of cash margin payable of $3.9.
(b) | Derivative assets of $4.2 net of cash margin payable of $5.5.
(c) | The table below categorizes the fair value measurements of The Laclede Group's postretirement plan assets:
($ Millions) | Quoted Prices in Active Markets (Level 1) |  | Significant Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3) |  | Total
As of September 30, 2014 |  |  |  |  |  |  |
Cash and cash equivalents | $ | 2.3 |  |  | $ | — |  |  | $ | — |  |  | $ | 2.3 |
US stock/bond mutual fund | 213.0 |  |  | — |  |  | — |  |  | 213.0 |
International Fund | 7.2 |  |  | — |  |  | — |  |  | 7.2 |
Total | $ | 222.5 |  |  | $ | — |  |  | $ | — |  |  | $ | 222.5 |
As of September 30, 2013 |  |  |  |  |  |  |
Cash and cash equivalents | $ | 1.4 |  |  | $ | — |  |  | $ | — |  |  | $ | 1.4 |
US stock/bond mutual fund | 110.2 |  |  | — |  |  | — |  |  | 110.2 |
Total | $ | 111.6 |  |  | $ | — |  |  | $ | — |  |  | $ | 111.6 |
Pension Plans |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] |
Net Periodic Cost | The net periodic pension costs include the following components:
($ Millions) | 2014* |  | 2013 |  | 2012
Laclede Group |  |  |  |  |
Service cost – benefits earned during the period | $ | 10.2 |  |  | $ | 9.2 |  |  | $ | 9.2 |
Interest cost on projected benefit obligation | 24.5 |  |  | 17.0 |  |  | 19.4 |
Expected return on plan assets | (27.2 | ) |  | (19.4 | ) |  | (19.6 | )
Amortization of prior other comprehensive income | 0.4 |  |  | — |  |  | — |
Amortization of prior service cost | 0.5 |  |  | 0.5 |  |  | 0.6 |
Amortization of actuarial loss | 7.1 |  |  | 10.7 |  |  | 9.0 |
Loss on lump-sum settlements | 1.5 |  |  | 27.0 |  |  | 20.1 |
Sub-total | 17.0 |  |  | 45.0 |  |  | 38.7 |
Regulatory adjustment | 10.4 |  |  | (27.5 | ) |  | (18.6 | )
Net pension cost | $ | 27.4 |  |  | $ | 17.5 |  |  | $ | 20.1 |
Laclede Gas | 2014 |  | 2013 |  | 2012
Service cost – benefits earned during the period | $ | 9.7 |  |  | $ | 9.2 |  |  | $ | 9.2 |
Interest cost on projected benefit obligation | 24.0 |  |  | 17.0 |  |  | 19.4 |
Expected return on plan assets | (26.5 | ) |  | (19.4 | ) |  | (19.6 | )
Amortization of prior service cost | 0.5 |  |  | 0.5 |  |  | 0.6 |
Amortization of actuarial loss | 7.1 |  |  | 10.7 |  |  | 9.0 |
Loss on lump-sum settlements | 1.5 |  |  | 27.0 |  |  | 20.1 |
Sub-total | 16.3 |  |  | 45.0 |  |  | 38.7 |
Regulatory adjustment | 10.4 |  |  | (27.5 | ) |  | (18.6 | )
Net pension cost | $ | 26.7 |  |  | $ | 17.5 |  |  | $ | 20.1 |
* | Includes Alagasco.
Other changes in plan assets and benefit obligations recognized in other comprehensive income | Other changes in plan assets and pension benefit obligations recognized in other comprehensive income include the following:
($ Millions) | 2014* |  | 2013 |  | 2012
Laclede Group |  |  |  |  |
Current year actuarial loss | $ | 15.7 |  |  | $ | 17.0 |  |  | $ | 32.9 |
Amortization of actuarial loss | (7.1 | ) |  | (10.7 | ) |  | (29.1 | )
Acceleration of loss recognized due to settlement | (1.5 | ) |  | (27.0 | ) |  | — |
Amortization of prior service cost | (0.5 | ) |  | (0.5 | ) |  | (0.6 | )
Sub-total | 6.6 |  |  | (21.2 | ) |  | 3.2 |
Regulatory adjustment | (6.1 | ) |  | 21.1 |  |  | (3.5 | )
Total recognized in other comprehensive income | $ | 0.5 |  |  | $ | (0.1 | ) |  | $ | (0.3 | )
Laclede Gas | 2014 |  | 2013 |  | 2012
Current year actuarial loss | $ | 14.2 |  |  | $ | 17.0 |  |  | $ | 32.9 |
Amortization of actuarial loss | (7.1 | ) |  | (10.7 | ) |  | (29.1 | )
Acceleration of loss recognized due to settlement | (1.5 | ) |  | (27.0 | ) |  | — |
Amortization of prior service cost | (0.5 | ) |  | (0.5 | ) |  | (0.6 | )
Sub-total | 5.1 |  |  | (21.2 | ) |  | 3.2 |
Regulatory adjustment | (4.7 | ) |  | 21.1 |  |  | (3.5 | )
Total recognized in other comprehensive income | $ | 0.4 |  |  | $ | (0.1 | ) |  | $ | (0.3 | )
* | Includes Alagasco.
Reconciliation of the beginning and ending balances of benefit obligation | The following table sets forth the reconciliation of the beginning and ending balances of the pension benefit obligation at September 30:
| Laclede Group |  | Laclede Gas
($ Millions) | 2014** |  | 2013 |  | 2014 |  | 2013
Benefit obligation, beginning of year | $ | 503.8 |  |  | $ | 412.2 |  |  | $ | 503.8 |  |  | $ | 412.2 |
Service cost | 10.2 |  |  | 9.2 |  |  | 9.7 |  |  | 9.2 |
Interest cost | 24.5 |  |  | 17.0 |  |  | 24.0 |  |  | 17.0 |
Actuarial (gain) loss | 39.4 |  |  | (24.0 | ) |  | 41.5 |  |  | (24.0 | )
MGE acquisition | — |  |  | 151.4 |  |  | — |  |  | 151.4 |
Alagasco acquisition | 150.3 |  |  | — |  |  | — |  |  | — |
Settlement loss | 1.2 |  |  | 25.0 |  |  | 1.2 |  |  | 25.0 |
Gross benefits paid * | (36.9 | ) |  | (87.0 | ) |  | (36.6 | ) |  | (87.0 | )
Benefit obligation, end of year | $ | 692.5 |  |  | $ | 503.8 |  |  | $ | 543.6 |  |  | $ | 503.8 |
Accumulated benefit obligation, end of year | $ | 613.7 |  |  | $ | 444.1 |  |  | $ | 484.1 |  |  | $ | 444.1 |
* | Includes $22.1 and $79.5 lump-sum payments recognized as settlements in fiscal years 2014 and 2013, respectively.
** Includes Alagasco.
Fair value of plan assets | The following table sets forth the reconciliation of the beginning and ending balances of the fair value of plan assets at September 30:
| Laclede Group |  | Laclede Gas
($ Millions) | 2014** |  | 2013 |  | 2014 |  | 2013
Fair value of plan assets, beginning of year | $ | 345.4 |  |  | $ | 274.1 |  |  | $ | 345.4 |  |  | $ | 274.1 |
Actual return on plan assets | 52.1 |  |  | 3.4 |  |  | 55.0 |  |  | 3.4 |
Employer contributions | 23.6 |  |  | 28.0 |  |  | 23.6 |  |  | 28.0 |
MGE acquisition | — |  |  | 126.9 |  |  | — |  |  | 126.9 |
Alagasco acquisition | 122.4 |  |  | — |  |  | — |  |  | — |
Gross benefits paid * | (36.9 | ) |  | (87.0 | ) |  | (36.6 | ) |  | (87.0 | )
Fair value of plan assets, end of year | $ | 506.6 |  |  | $ | 345.4 |  |  | $ | 387.4 |  |  | $ | 345.4 |
Funded status of plans, end of year | $ | (185.9 | ) |  | $ | (158.4 | ) |  | $ | (156.2 | ) |  | $ | (158.4 | )
* | Includes $22.1 and $79.5 lump-sum payments recognized as settlements in fiscal years 2014 and 2013, respectively.
** Includes Alagasco.
Amounts recognized in consolidated balance sheets | The following table sets forth the amounts recognized in the Balance Sheets at September 30:
| Laclede Group |  | Laclede Gas
($ Millions) | 2014* |  | 2013 |  | 2014 |  | 2013
Current liabilities | $ | (0.5 | ) |  | $ | (0.4 | ) |  | $ | (0.5 | ) |  | $ | (0.4 | )
Non-current liabilities | (185.4 | ) |  | (158.0 | ) |  | (155.7 | ) |  | (158.0 | )
Total | $ | (185.9 | ) |  | $ | (158.4 | ) |  | $ | (156.2 | ) |  | $ | (158.4 | )
Pre-tax amounts recognized in accumulated other comprehensive income not yet recognized as components of net periodic pension cost consist of: |  |  |  |  |  |  |
Net actuarial loss | $ | 7.7 |  |  | $ | 115.8 |  |  | $ | 7.7 |  |  | $ | 115.8 |
Prior service costs | 0.5 |  |  | 4.5 |  |  | 0.5 |  |  | 4.5 |
Sub-total | 8.2 |  |  | 120.3 |  |  | 8.2 |  |  | 120.3 |
Adjustments for amounts included in Regulatory Assets | (7.9 | ) |  | (116.7 | ) |  | (7.9 | ) |  | (116.7 | )
Total | $ | 0.3 |  |  | $ | 3.6 |  |  | $ | 0.3 |  |  | $ | 3.6 |
* | Includes Alagasco.
Pre-tax amounts amortized from accumulated other comprehensive income into net periodic cost | At September 30, 2014, the following pre-tax amounts are expected to be amortized from accumulated other comprehensive income into net periodic pension cost during fiscal year 2015:
| Laclede Group |  | Laclede Gas
($ Millions) | 2015 |  | 2015
Amortization of net actuarial loss | $ | 122.9 |  |  | $ | 121.4 |
Amortization of prior service cost | 4.0 |  |  | 4.0 |
Sub-total | 126.9 |  |  | 125.4 |
Regulatory adjustment | (122.3 | ) |  | (122.3 | )
Total | $ | 4.6 |  |  | $ | 3.1 |
Assumptions used to calculate net periodic cost and benefit obligations. | The assumptions used to calculate the benefit obligations are as follows:
| 2014 |  | 2013
Weighted average discount rate - Laclede Gas | 4.30% |  | 4.70%
Weighted average discount rate - MGE | 4.45% |  | 5.00%
Weighted average discount rate - Alagasco | 4.15% / 4.25% |  | —%
Weighted average rate of future compensation increase (all plans) | 3.00% |  | 3.00%
The assumptions used to calculate net periodic pension costs for Laclede Gas are as follows:
| 2014 |  | 2013 |  | 2012
Weighted average discount rate - Laclede Gas plans | 4.70% |  | 3.95% |  | 5.10%
Weighted average discount rate - MGE plans | 5.00% |  | 5.05% |  | —%
Weighted average rate of future compensation increase * | 3.00% |  | 3.00% |  | 3.00%
Expected long-term rate of return on plan assets * | 7.75% |  | 7.75% |  | 7.75%
* | Assumptions for weighted average rate of future compensation increase and expected long-term rate of return on plan assets are the same for both Laclede Gas and MGE plans.
The assumptions used to calculate net periodic pension costs for Alagasco are as follows:
| 2014
Weighted average discount rate | 4.00% / 4.05%
Weighted average rate of future compensation increase | 2.92%
Expected long-term rate of return on plan assets | 7.00% / 7.25%
Projected benefit obligation, accumulated benefit obligation, and fair value of plan assets for plans that have projected benefit obligation and accumulated benefit obligation in excess of plan assets | Following are the projected benefit obligation, accumulated benefit obligation, and fair value of plan assets for plans that have a projected benefit obligation and an accumulated benefit obligation in excess of plan assets:
| Laclede Group |  | Laclede Gas
($ Millions) | 2014 |  | 2013 |  | 2014 |  | 2013
Projected benefit obligation | $ | 692.5 |  |  | $ | 503.8 |  |  | $ | 543.7 |  |  | $ | 503.8 |
Accumulated benefit obligation | 613.7 |  |  | 444.1 |  |  | 484.1 |  |  | 444.1 |
Fair value of plan assets | 506.6 |  |  | 345.4 |  |  | 387.5 |  |  | 345.4 |
Targeted and actual plan assets by category | Following are the targeted and actual plan assets by category as of September 30 of each year for Laclede Gas:
| Target |  | 2014 Actual |  | 2013 Actual
Growth Strategy |  |  |  |  |
Equity Markets | 45.5 | % |  | 46.7 | % |  | 45.9 | %
Commodities | 1.5 | % |  | 1.5 | % |  | 1.6 | %
Real Estate | 1.5 | % |  | 1.5 | % |  | 3.0 | %
Inflation-Indexed Securities | 1.5 | % |  | 1.5 | % |  | 1.4 | %
Debt Securities | 50.0 | % |  | 48.7 | % |  | 43.3 | %
Other* | — | % |  | 0.1 | % |  | 4.8 | %
Total | 100.0 | % |  | 100.0 | % |  | 100.0 | %
* Other investments in 2014 and 2013 consist of cash equivalents. Laclede Gas' investment policies are designed to maximize, to the extent possible, the funded status of the plan over time, and minimize volatility of funding and costs. The policy seeks to maximize investment returns consistent with these objectives and Laclede Gas' tolerance for risk. The duration of plan liabilities and the impact of potential changes in asset values on the funded status are fundamental considerations in the selection of plan assets. Outside investment management specialists are utilized in each asset class. Such specialists are provided with guidelines, where appropriate, designed to ensure that the investment portfolio is managed in accordance with the policy. The policy seeks to avoid significant concentrations of risk by investing in a diversified portfolio of assets. Investments in corporate, US government and agencies, and, to a lesser extent, international debt securities seek to provide duration matching with plan liabilities, and typically have investment grade ratings and reflect allocations across various entities and industries. During 2012, exposures to additional asset types were added to the target portfolio: commodities, real estate and inflation-indexed securities. The investment policy permits the use of derivative instruments, which may be used to achieve the desired market exposure of an index, adjust portfolio duration, or rebalance the total portfolio to the target asset allocation. The Growth Strategy utilizes a combination of derivative instruments and debt securities to achieve diversified exposure to equity and other markets while generating returns from the fixed-income investments and providing further duration matching with the liabilities. The assets acquired with the MGE pension plan include diversified funds that are equity-oriented and larger holdings of cash. These are being evaluated along with the liabilities of the MGE plan. Performance and compliance with the guidelines is regularly monitored. The policy calls for increased allocations to debt securities as the funded status improves. Following are the targeted and actual plan assets by category as of September 30, 2014 for Alagasco:
| Target |  | 2014 Actual
Equity Markets | 46.0 | % |  | 46.0 | %
Debt Securities | 33.0 | % |  | 29.0 | %
Other | 21.0 | % |  | 25.0 | %
Total | 100.0 | % |  | 100.0 | %
* Other investments in 2014 includes cash and cash equivalents, hedge funds, real estate, and all asset funds, which can invest in equities or fixed income.
Expected benefit payments for the succeeding five fiscal years | Following are expected pension benefit payments for the succeeding five fiscal years, and in aggregate for the five years thereafter for Laclede Group:
($ Millions) | Pensions from Qualified Trust |  | Pensions from Laclede Gas Funds |  | Pensions from Alagasco Funds
2015 | $ | 22.3 |  |  | $ | 0.5 |  |  | $ | 9.9 |
2016 | 25.2 |  |  | 0.5 |  |  | 10.2 |
2017 | 27.0 |  |  | 0.6 |  |  | 10.6 |
2018 | 30.6 |  |  | 0.6 |  |  | 10.6 |
2019 | 32.9 |  |  | 0.7 |  |  | 11.2 |
2020 – 2024 | 224.4 |  |  | 4.4 |  |  | 58.7 |
Following are expected pension benefit payments for the succeeding five fiscal years, and in aggregate for the five years thereafter for Laclede Gas:
($ Millions) | Pensions from Qualified Trust |  | Pensions from Laclede Gas Funds
2015 | $ | 22.3 |  |  | $ | 0.5 |
2016 | 25.2 |  |  | 0.5 |
2017 | 27.0 |  |  | 0.6 |
2018 | 30.6 |  |  | 0.6 |
2019 | 32.9 |  |  | 0.7 |
2020 – 2024 | 224.4 |  |  | 4.4 |
Postretirement Plans |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] |
Net Periodic Cost | Net periodic postretirement benefit costs consisted of the following components:
($ Millions) |  |  |  |  |
Laclede Group | 2014* |  | 2013 |  | 2012
Service cost – benefits earned during the period | $ | 11.3 |  |  | $ | 10.2 |  |  | $ | 8.1 |
Interest cost on accumulated postretirement benefit obligation | 8.9 |  |  | 5.2 |  |  | 5.5 |
Expected return on plan assets | (7.3 | ) |  | (4.5 | ) |  | (4.0 | )
Amortization of prior other comprehensive loss | (0.2 | ) |  | — |  |  | — |
Amortization of transition obligation | — |  |  | 0.1 |  |  | 0.1 |
Amortization of prior service credit | — |  |  | — |  |  | (2.1 | )
Amortization of actuarial loss | 6.0 |  |  | 5.3 |  |  | 4.3 |
Sub-total | 18.7 |  |  | 16.3 |  |  | 11.9 |
Regulatory adjustment | (9.6 | ) |  | (6.8 | ) |  | (2.4 | )
Net postretirement benefit cost | $ | 9.1 |  |  | $ | 9.5 |  |  | $ | 9.5 |
Laclede Gas | 2014 |  | 2013 |  | 2012
Service cost – benefits earned during the period | $ | 11.2 |  |  | $ | 10.2 |  |  | $ | 8.1 |
Interest cost on accumulated postretirement benefit obligation | 8.7 |  |  | 5.2 |  |  | 5.5 |
Expected return on plan assets | (6.8 | ) |  | (4.5 | ) |  | (4.0 | )
Amortization of transition obligation | — |  |  | 0.1 |  |  | 0.1 |
Amortization of prior service credit | — |  |  | — |  |  | (2.1 | )
Amortization of actuarial loss | 6.0 |  |  | 5.3 |  |  | 4.3 |
Sub-total | 19.1 |  |  | 16.3 |  |  | 11.9 |
Regulatory adjustment | (9.6 | ) |  | (6.8 | ) |  | (2.4 | )
Net postretirement benefit cost | $ | 9.5 |  |  | $ | 9.5 |  |  | $ | 9.5 |
* | Includes Alagasco.
Other changes in plan assets and benefit obligations recognized in other comprehensive income | Other changes in plan assets and postretirement benefit obligations recognized in other comprehensive income include the following:
($ Millions) |  |  |  |  |
Laclede Group | 2014* |  | 2013 |  | 2012
Current year actuarial (gain) loss | $ | (3.1 | ) |  | $ | 16.3 |  |  | $ | 10.1 |
Amortization of actuarial loss | (6.0 | ) |  | (5.3 | ) |  | (4.3 | )
Amortization of prior service credit | 2.5 |  |  | — |  |  | 2.1 |
Amortization of transition obligation | — |  |  | (0.1 | ) |  | (0.1 | )
Sub-total | (6.6 | ) |  | 10.9 |  |  | 7.8 |
Regulatory adjustment | 6.6 |  |  | (10.9 | ) |  | (7.8 | )
Total recognized in other comprehensive income | $ | — |  |  | $ | — |  |  | $ | — |
Laclede Gas | 2014 |  | 2013 |  | 2012
Current year actuarial (gain) loss | $ | (4.2 | ) |  | $ | 16.3 |  |  | $ | 10.1 |
Amortization of actuarial loss | (6.0 | ) |  | (5.3 | ) |  | (4.3 | )
Amortization of prior service credit | 2.5 |  |  | — |  |  | 2.1 |
Amortization of transition obligation | — |  |  | (0.1 | ) |  | (0.1 | )
Sub-total | (7.7 | ) |  | 10.9 |  |  | 7.8 |
Regulatory adjustment | 7.7 |  |  | (10.9 | ) |  | (7.8 | )
Total recognized in other comprehensive income | $ | — |  |  | $ | — |  |  | $ | — |
* | Includes Alagasco.
Reconciliation of the beginning and ending balances of benefit obligation | The following table sets forth the reconciliation of the beginning and ending balances of the postretirement benefit obligation at September 30:
| Laclede Group |  | Laclede Gas
($ Millions) | 2014* |  | 2013 |  | 2014 |  | 2013
Benefit obligation, beginning of year | $ | 180.1 |  |  | $ | 127.2 |  |  | $ | 180.1 |  |  | $ | 127.2 |
Service cost | 11.3 |  |  | 10.2 |  |  | 11.2 |  |  | 10.2 |
Interest cost | 8.9 |  |  | 5.2 |  |  | 8.7 |  |  | 5.2 |
Actuarial loss (gain) | 1.2 |  |  | 17.5 |  |  | 2.2 |  |  | 17.5 |
Plan amendments | 2.5 |  |  | — |  |  | 2.5 |  |  | — |
MGE acquisition | — |  |  | 28.4 |  |  | — |  |  | 28.4 |
Alagasco acquisition | 61.8 |  |  | — |  |  | — |  |  | — |
Gross benefits paid | (7.3 | ) |  | (8.4 | ) |  | (6.8 | ) |  | (8.4 | )
Benefit obligation, end of year | $ | 258.5 |  |  | $ | 180.1 |  |  | $ | 197.9 |  |  | $ | 180.1 |
* | Includes Alagasco.
Fair value of plan assets | The following table sets forth the reconciliation of the beginning and ending balances of the fair value of plan assets at September 30:
| Laclede Group |  | Laclede Gas
($ Millions) | 2014* |  | 2013 |  | 2014 |  | 2013
Fair value of plan assets at beginning of year | $ | 111.6 |  |  | $ | 67.4 |  |  | $ | 111.6 |  |  | $ | 67.4 |
Actual return on plan assets | 11.6 |  |  | 5.6 |  |  | 13.3 |  |  | 5.6 |
Employer contributions | 19.1 |  |  | 16.6 |  |  | 19.1 |  |  | 16.6 |
MGE acquisition | — |  |  | 30.4 |  |  | — |  |  | 30.4 |
Alagasco acquisition | 87.5 |  |  | — |  |  | — |  |  | — |
Gross benefits paid | (7.3 | ) |  | (8.4 | ) |  | (6.8 | ) |  | (8.4 | )
Fair value of plan assets, end of year | $ | 222.5 |  |  | $ | 111.6 |  |  | $ | 137.2 |  |  | $ | 111.6 |
Funded status of plans, end of year | $ | (36.0 | ) |  | $ | (68.5 | ) |  | $ | (60.7 | ) |  | $ | (68.5 | )
* | Includes Alagasco.
Amounts recognized in consolidated balance sheets | The following table sets forth the amounts recognized in the Balance Sheets at September 30:
| Laclede Group |  | Laclede Gas
($ Millions) | 2014* |  | 2013 |  | 2014 |  | 2013
Non-current assets | $ | 25.0 |  |  | $ | 2.5 |  |  | $ | 0.3 |  |  | $ | 2.5 |
Current liabilities | (0.3 | ) |  | (0.3 | ) |  | (0.3 | ) |  | (0.3 | )
Non-current liabilities | (60.7 | ) |  | (70.7 | ) |  | (60.7 | ) |  | (70.7 | )
Total | $ | (36.0 | ) |  | $ | (68.5 | ) |  | $ | (60.7 | ) |  | $ | (68.5 | )
Pre-tax amounts recognized in accumulated other comprehensive income not yet recognized as components of net periodic postretirement benefit cost consist of: |  |  |  |  |  |  |
Net actuarial loss | $ | 54.4 |  |  | $ | 63.6 |  |  | $ | 53.3 |  |  | $ | 63.6 |
Prior service credit | 2.5 |  |  | — |  |  | 2.5 |  |  | — |
Transition obligation | — |  |  | — |  |  | — |  |  | — |
Sub-total | 56.9 |  |  | 63.6 |  |  | 55.8 |  |  | 63.6 |
Adjustments for amounts included in Regulatory Assets | (56.9 | ) |  | (63.6 | ) |  | (55.8 | ) |  | (63.6 | )
Total | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
* | Includes Alagasco.
Pre-tax amounts amortized from accumulated other comprehensive income into net periodic cost | At September 30, 2014, the following pre-tax amounts are expected to be amortized from accumulated other comprehensive income into net periodic postretirement benefit cost during fiscal year 2015:
| Laclede Group |  | Laclede Gas
($ Millions) | 2015* |  | 2015
Amortization of net actuarial loss | $ | 5.1 |  |  | $ | 5.1 |
Amortization of prior service cost | 0.8 |  |  | 0.8 |
Sub-total | 5.9 |  |  | 5.9 |
Regulatory adjustment | (5.9 | ) |  | (5.9 | )
Total | $ | — |  |  | $ | — |
* | Includes Alagasco.
Assumptions used to calculate net periodic cost and benefit obligations. | The assumptions used to calculate the accumulated postretirement benefit obligations are as follows:
| 2014 |  | 2013
Weighted average discount rate - Laclede Gas plans | 4.15% |  | 4.60%
Weighted average discount rate - MGE Plans | 4.40% |  | 4.95%
Weighted average rate of future compensation increase | 3.00% |  | 3.00%
The assumptions used to calculate the accumulated postretirement benefit obligations for Alagasco are as follows:
| 2014 |  | 2013
Weighted average discount rate | 4.40% |  | —%
The assumptions used to calculate net periodic postretirement benefit costs for Laclede Gas are as follows:
| 2014 |  | 2013 |  | 2012
Weighted average discount rate Laclede Gas plans | 4.60% |  | 3.80% |  | 5.05%
Weighted average discount rate MGE plans | 4.95% |  | 5.00% |  | —%
Weighted average rate of future compensation increase * | 3.00% |  | 3.00% |  | 3.00%
Expected long-term rate of return on plan assets - Laclede Gas plans | 6.25% / 7.75% |  | 7.75% |  | 7.75%
Expected long-term rate of return on plan assets - MGE plans | 3.75% / 5.75% |  | 5.75% |  | —%
The assumptions used to calculate net periodic postretirement benefit costs for Alagasco are as follows:
| 2014
Weighted average discount rate | 4.25%
Expected long-term rate of return on plan assets | 4.75% / 7.50%
Targeted and actual plan assets by category | Following are the targeted and actual plan assets by category as of September 30 of each year for Laclede Gas:
| Target |  | 2014 Actual |  | 2013 Actual
Equity Securities | 60.0 | % |  | 59.0 | % |  | 59.0 | %
Debt Securities | 40.0 | % |  | 39.0 | % |  | 39.0 | %
Other | — | % |  | 2.0 | % |  | 2.0 | %
Total | 100.0 | % |  | 100.0 | % |  | 100.0 | %
Following are the targeted and actual plan assets by category as of September 30, 2014 for Alagasco:
| Target |  | 2014 Actual
Equity Securities | 60.0% |  | 60.0%
Debt Securities | 40.0% |  | 40.0%
Other | —% |  | —%
Total | 100.0% |  | 100.0%
Expected benefit payments for the succeeding five fiscal years | Following are expected postretirement benefit payments for the succeeding five fiscal years, and in aggregate for the five years thereafter for Laclede Group:
($ Millions) | Benefits Paid from Qualified Trust |  | Benefits Paid from Laclede Gas Funds |  | Benefits Paid from Alagasco Funds
2015 | $ | 9.7 |  |  | $ | 0.3 |  |  | $ | 3.8 |
2016 | 10.6 |  |  | 0.3 |  |  | 3.8 |
2017 | 11.5 |  |  | 0.3 |  |  | 3.8 |
2018 | 12.5 |  |  | 0.4 |  |  | 3.8 |
2019 | 13.9 |  |  | 0.4 |  |  | 3.8 |
2020 – 2024 | 87.0 |  |  | 2.1 |  |  | 18.6 |
Following are expected postretirement benefit payments for the succeeding five fiscal years, and in aggregate for the five years thereafter for Laclede Gas:
($ Millions) | Benefits Paid from Qualified Trust |  | Benefits Paid from Laclede Gas Funds
2015 | $ | 9.7 |  |  | $ | 0.3 |
2016 | 10.6 |  |  | 0.3 |
2017 | 11.5 |  |  | 0.3 |
2018 | 12.5 |  |  | 0.4 |
2019 | 13.9 |  |  | 0.4 |
2020 – 2024 | 87.0 |  |  | 2.1 |
Assumed medical cost trend rates and effect of an assumed 1% changed in assumed medical cost trend. | The assumed medical cost trend rates at September 30 are as follows:
| 2014 |  | 2013
Medical cost trend assumed for next year - Laclede Gas & MGE | 7.50% |  | 7.50%
Medical cost trend assumed for next year - Alagasco | 7.25% |  | —%
Rate to which the medical cost trend rate is assumed to decline (the ultimate medical cost trend rate) | 5.00% |  | 5.00%
Year the rate reaches the ultimate trend | 2020 |  | 2020
The following table presents the effect of an assumed 1% change in the assumed medical cost trend rate:
($ Millions) | 1% Increase |  | 1% Decrease
Laclede Group |  |  |
Effect on net periodic postretirement benefit cost | $ | 1.4 |  |  | $ | (1.3 | )
Effect on accumulated postretirement benefit obligation | 7.1 |  |  | (6.7 | )
Laclede Gas |  |  |
Effect on net periodic postretirement benefit cost | $ | 1.4 |  |  | $ | (1.3 | )
Effect on accumulated postretirement benefit obligation | 6.4 |  |  | (5.9 | )
Laclede Gas |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] |
Fair value measurements of plan assets | The table below categorizes the fair value measurements of Laclede Gas' pension plan assets:
($ Millions) | Quoted Prices in Active Markets (Level 1) |  | Significant Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3) |  | Total
As of September 30, 2014 |  |  |  |  |  |  |
Cash and cash equivalents | $ | 8.3 |  |  | $ | — |  |  | $ | — |  |  | $ | 8.3 |
Stock/Bond mutual fund | — |  |  | 39.2 |  |  | 9.3 |  |  | 48.5 |
Debt Securities |  |  |  |  |  |  |
US bond mutual funds | 73.6 |  |  | — |  |  | — |  |  | 73.6 |
US government | — |  |  | 60.5 |  |  | — |  |  | 60.5 |
US corporate | — |  |  | 154.5 |  |  | — |  |  | 154.5 |
US municipal | — |  |  | 8.2 |  |  | — |  |  | 8.2 |
International | — |  |  | 34.8 |  |  | — |  |  | 34.8 |
Derivative instruments (a) | — |  |  | (1.0 | ) |  | — |  |  | (1.0 | )
Total | $ | 81.9 |  |  | $ | 296.2 |  |  | $ | 9.3 |  |  | $ | 387.4 |
As of September 30, 2013 |  |  |  |  |  |  |
Cash and cash equivalents | $ | 18.2 |  |  | $ | — |  |  | $ | — |  |  | $ | 18.2 |
Stock/Bond mutual fund | — |  |  | 115.8 |  |  | — |  |  | 115.8 |
Debt Securities |  |  |  |  |  |  |
US bond mutual funds | 17.7 |  |  | — |  |  | — |  |  | 17.7 |
US government | — |  |  | 55.7 |  |  | — |  |  | 55.7 |
US corporate | — |  |  | 110.9 |  |  | — |  |  | 110.9 |
US municipal | — |  |  | 6.8 |  |  | — |  |  | 6.8 |
International | — |  |  | 21.6 |  |  | — |  |  | 21.6 |
Derivative instruments (b) | — |  |  | (1.3 | ) |  | — |  |  | (1.3 | )
Total | $ | 35.9 |  |  | $ | 309.5 |  |  | $ | — |  |  | $ | 345.4 |
(a) | Derivative assets of $2.9 net of cash margin payable of $3.9.
(b) | Derivative assets of $4.2 net of cash margin payable of $5.5.
The table below categorizes the fair value measurements of Laclede Gas' postretirement plan assets:
($ Millions) | Quoted Prices in Active Markets (Level 1) |  | Significant Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3) |  | Total
As of September 30, 2014 |  |  |  |  |  |  |
Cash and cash equivalents | $ | 2.3 |  |  | $ | — |  |  | $ | — |  |  | $ | 2.3 |
US stock/bond mutual fund | 134.9 |  |  | — |  |  | — |  |  | 134.9 |
Total | $ | 137.2 |  |  | $ | — |  |  | $ | — |  |  | $ | 137.2 |
As of September 30, 2013 |  |  |  |  |  |  |
Cash and cash equivalents | $ | 1.4 |  |  | $ | — |  |  | $ | — |  |  | $ | 1.4 |
US stock/bond mutual fund | 110.2 |  |  | — |  |  | — |  |  | 110.2 |
Total | $ | 111.6 |  |  | $ | — |  |  | $ | — |  |  | $ | 111.6 |
Fair value of plan assets, unobservable input reconciliation | The table below details the change in level three investments for the year ended September 30, 2014:
($ Millions) |  | October 1, 2013 |  | Transfers in (out) of Level 3 |  | September 30, 2014
Stock/Bond mutual fund |  | $ | — |  |  | $ | 9.3 |  |  | $ | 9.3 |

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