Retirement benefits

Defined benefit pension and other postretirement benefit plans information. For the first nine months of 2016, the Company contributed $49 million ($48 million by the Utilities) to its pension and other postretirement benefit plans, compared to $66 million ($65 million by the Utilities) in the first nine months of 2015. The Company’s current estimate of contributions to its pension and other postretirement benefit plans in 2016 is $65 million ($64 million by the Utilities, $1 million by HEI and nil by ASB), compared to $88 million ($86 million by the Utilities, $2 million by HEI and nil by ASB) in 2015. In addition, the Company expects to pay directly $3 million ($1 million by the Utilities) of benefits in 2016, compared to $1 million ($0.4 million by the Utilities) paid in 2015.

The components of net periodic benefit cost for HEI consolidated and Hawaiian Electric consolidated were as follows:



	Three months ended September 30												Nine months ended September 30
	Pension benefits						Other benefits						Pension benefits						Other benefits
(in thousands)	2016			2015			2016			2015			2016			2015			2016			2015
HEI consolidated
Service cost	$	15,126		$	16,577		$	831		$	982		$	45,430		$	49,683		$	2,499		$	2,945
Interest cost	20,396			19,229			2,417			2,254			61,154			57,731			7,254			6,757
Expected return on plan assets	(24,640		)	(22,126		)	(3,064		)	(2,912		)	(73,920		)	(66,426		)	(9,207		)	(8,753		)
Amortization of net prior service loss (gain)	(15		)	1			(449		)	(448		)	(43		)	3			(1,345		)	(1,345		)
Amortization of net actuarial loss	6,228			9,191			200			450			18,605			27,608			603			1,346
Net periodic benefit cost	17,095			22,872			(65		)	326			51,226			68,599			(196		)	950
Impact of PUC D&Os	(4,653		)	(10,017		)	336			(60		)	(13,464		)	(29,994		)	1,008			(180		)
Net periodic benefit cost (adjusted for impact of PUC D&Os)	$	12,442		$	12,855		$	271		$	266		$	37,762		$	38,605		$	812		$	770
Hawaiian Electric consolidated
Service cost	$	14,699		$	16,066		$	821		$	967		$	44,097		$	48,197		$	2,463		$	2,902
Interest cost	18,702			17,632			2,334			2,175			56,106			52,897			7,003			6,525
Expected return on plan assets	(22,908		)	(20,635		)	(3,023		)	(2,873		)	(68,725		)	(61,906		)	(9,072		)	(8,621		)
Amortization of net prior service loss (gain)	3			10			(451		)	(450		)	10			30			(1,353		)	(1,352		)
Amortization of net actuarial loss	5,674			8,342			198			438			17,020			25,028			595			1,315
Net periodic benefit cost	16,170			21,415			(121		)	257			48,508			64,246			(364		)	769
Impact of PUC D&Os	(4,653		)	(10,017		)	336			(60		)	(13,464		)	(29,994		)	1,008			(180		)
Net periodic benefit cost (adjusted for impact of PUC D&Os)	$	11,517		$	11,398		$	215		$	197		$	35,044		$	34,252		$	644		$	589

HEI consolidated recorded retirement benefits expense of $26 million ($23 million by the Utilities) and $27 million ($22 million by the Utilities) in the first nine months of 2016 and 2015, respectively, and charged the remaining net periodic benefit cost primarily to electric utility plant.

The Utilities have implemented pension and OPEB tracking mechanisms under which all of their retirement benefit expenses (except for executive life and nonqualified pension plan expenses) determined in accordance with GAAP are recovered over time. Under the tracking mechanisms, these retirement benefit costs that are over/under amounts allowed in rates are charged/credited to a regulatory asset/liability. The regulatory asset/liability for each utility will be amortized over 5 years beginning with the issuance of the PUC’s D&O in the respective utility’s next rate case.

Defined contribution plans information. For the first nine months of 2016 and 2015, the Company’s expenses for its defined contribution pension plans under the Hawaiian Electric Industries Retirement Savings Plan (HEIRSP) and the ASB 401(k) Plan were $4.1 million and $4.0 million, respectively, and cash contributions were $4.6 million and $4.3 million, respectively. For the first nine months of 2016 and 2015, the Utilities’ expenses for its defined contribution pension plan under the HEIRSP were $1.2 million and $1.1 million, respectively, and cash contributions were $1.2 million and $1.1 million, respectively.