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Defined Benefit Plan
 3 Months Ended
Mar. 31, 2013
Compensation and Retirement Disclosure [Abstract]  
DEFINED BENEFIT PLAN
Defined Benefit Plan
San Jose Water Company sponsors a noncontributory defined benefit pension plan for its eligible union and nonunion employees. Employees hired before March 31, 2008 are entitled to receive retirement benefits using a formula based on the employee’s three highest years of compensation (whether or not consecutive). For employees hired on or after March 31, 2008, benefits are determined using a cash balance formula based upon compensation credits and interest credits for each employee. The components of net periodic benefit costs for San Jose Water Company’s pension plan, its Executive Supplemental Retirement Plan and other postretirement benefit plan for the three months ended March 31, 2013 and 2012 are as follows:
 
Three months ended March 31,
 
2013
 
2012
Service cost
$
1,239

 
1,157

Interest cost
1,475

 
1,450

Other cost
1,208

 
1,166

Expected return on assets
(1,380
)
 
(1,148
)
 
$
2,542

 
2,625



The following tables summarize the fair values of plan assets by major categories as of March 31, 2013 and December 31, 2012: 
 
 
 
Fair Value Measurements at March 31, 2013
 
 
 
 
 
Quoted
Prices in
Active
Markets for
Identical
Assets
 
Significant
Observable
Inputs
 
Significant
Unobservable
Inputs
Asset Category
Benchmark
 
Total
 
(Level 1)
 
(Level 2)
 
(Level 3)
Cash and cash equivalents
 
 
$
3,146

 
$
3,146

 
$
—

 
$
—

Actively Managed (a):
 
 
 
 
 
 
 
 
 
U.S. Large Cap Equity
Russell 1000, Russell 1000 Growth, Russell 1000 Value
 
26,062

 
26,062

 
—

 
—

U.S. Mid Cap Equity
Russell Mid Cap, Russell Mid Cap Growth, Russell Mid Cap Value
 
4,479

 
4,479

 
—

 
—

U.S. Small Cap Equity
Russell 2000, Russell 2000 Growth, Russell 2000 Value
 
2,588

 
2,588

 
—

 
—

Non-U.S. Large Cap Equity
MSCI EAFE
 
4,230

 
4,230

 
—

 
—

REIT
NAREIT - Equity REIT’S
 
3,981

 
—

 
3,981

 
—

Fixed Income (b)
(b)
 
37,339

 
—

 
37,339

 
—

Total
 
 
$
81,825

 
$
40,505

 
$
41,320

 
$
—

The Plan has a current target allocation of 55% invested in a diversified array of equity securities to provide long-term capital appreciation and 45% invested in a diversified array of fixed income securities to provide preservation of capital plus generation of income.
(a)
Actively managed portfolio of securities with the goal to exceed the stated benchmark performance.
(b)
Actively managed portfolio of fixed income securities with the goal to exceed the Barclays 1-5 Year Government/Credit, Barclays Intermediate Government/Credit, and Merrill Lynch Preferred Stock Fixed Rate.
 
 
 
Fair Value Measurements at December 31, 2012
 
 
 
 
 
Quoted
Prices in
Active
Markets for
Identical
Assets
 
Significant
Observable
Inputs
 
Significant
Unobservable
Inputs
Asset Category
Benchmark
 
Total
 
(Level 1)
 
(Level 2)
 
(Level 3)
Cash and cash equivalents
 
 
$
7,056

 
$
7,056

 
$
—

 
$
—

Actively Managed (a):
 
 
 
 
 
 
 
 
 
U.S. Large Cap Equity
Russell 1000, Russell 1000 Growth, Russell 1000 Value
 
22,749

 
22,749

 
—

 
—

U.S. Mid Cap Equity
Russell Mid Cap, Russell Mid Cap Growth, Russell Mid Cap Value
 
3,989

 
3,989

 
—

 
—

U.S. Small Cap Equity
Russell 2000, Russell 2000 Growth, Russell 2000 Value
 
2,174

 
2,174

 
—

 
—

Non-U.S. Large Cap Equity
MSCI EAFE
 
4,169

 
4,169

 
—

 
—

REIT
NAREIT - Equity REIT’S
 
3,792

 
—

 
3,792

 
—

Fixed Income (b)
(b)
 
35,091

 
—

 
35,091

 
—

Total
 
 
$
79,020

 
$
40,137

 
$
38,883

 
$
—

The Plan has a current target allocation of 55% invested in a diversified array of equity securities to provide long-term capital appreciation and 45% invested in a diversified array of fixed income securities to provide preservation of capital plus generation of income.
(a)
Actively managed portfolio of securities with the goal to exceed the stated benchmark performance.
(b)
Actively managed portfolio of fixed income securities with the goal to exceed the Barclays 1-5 Year Government/Credit, Barclays Intermediate Government/Credit, and Merrill Lynch Preferred Stock Fixed Rate.

In 2013, San Jose Water Company expects to make required and discretionary cash contributions of up to $10,300 to the pension plans and other postretirement benefit plan. There have been no contributions to the pension plans and other postretirement benefit plan for the three months ended March 31, 2013.