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Benefit Plans
 12 Months Ended
Dec. 31, 2022
Retirement Benefits [Abstract]  
Benefit Plans Benefit Plans
Pension Plans
SJW Group maintains noncontributory defined benefit pension plans for its eligible employees. SJWC and CTWS employees hired before March 31, 2008 and January 1, 2009, respectively, are entitled to benefits under the pension plans based on the employee’s years of service and compensation. For SJWC 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. Interest is credited based on the annual yield on 30-year Treasury bonds as of October for the preceding plan year with a minimum annual rate of 3.25% and a maximum annual rate of 6.00%. For the year ended December 31, 2022, interest credits assumption was 3.25%. Certain employees hired before March 1, 2012, and covered by a plan merged into the CTWS plan in 2013 are also entitled to benefits based on the employee’s years of service and compensation. CTWS employees hired on or after January 1, 2009 are entitled to an additional 1.5% of eligible compensation to their company sponsored savings plan. SJW Group does not have multi-employer plans.
The pension plans are administered by their respective committees where the investment strategy of the investments of the various pension and post-retirement benefit plans are reviewed and approved to achieve the goals of income generation and long-term capital preservation. SJW Group engages third-party investment managers to assist with, among other things, asset allocation strategy, investment policy advice, performance monitoring, and investment manager due diligence. Individual investment decisions have been delegated by the pension plan committees to the investment managers who are also monitored by an investment consultant. Investment managers are not permitted to invest outside of the asset class or strategy under the pension plans’ investment guidelines. The committees ensure that the plans establish a target mix that is expected to achieve its investment objectives, by assuring a broad diversification of investment assets among investment types, while minimizing volatility of the target asset mix, unless market conditions make such a change appropriate to reduce risk. The pension plans require a minimum portion of plan assets to be allocated to fixed income securities and provide guidelines and restrictions on equity investments for the assets.
Plan assets are marked to market at each measurement date, resulting in unrealized actuarial gains or losses. Unrealized actuarial gains and losses on pension assets are amortized over the expected future working lifetime of participants for actuarial expense calculation purposes. Market gains in 2021 decreased pension expense by approximately $2,979 in 2022 and market gains in 2020 decreased pension expense by approximately $2,442 in 2021. For the year ended December 31, 2022, the net actuarial gain of the benefit obligation was related primarily a gain from changes of discount rate of $116,372, a $12,422 loss from pension data changes, and a gain from mortality changes of $4.
Generally, it is expected of the investment managers that the performance of the assets held in the pension plans, computed on a total annual rate of return basis, should meet or exceed specific performance standards over a three-to-five-year period and/or full market cycle. These standards include specific absolute and risk-adjusted performance standards over a three-to-five-year period and/or full market cycle. The expected long-term rate of return on the pension plan assets is between 6.50% and 6.75% for the year ended December 31, 2022.
SJW Group calculates the market-related value of defined benefit pension plan assets, which is defined under FASB ASC Topic 715—“Compensation—Retirement Benefits” as a balance used to calculate the expected return on plan assets, using fair value. The fair value is based on quoted prices in active markets for identical assets and significant observable inputs.
Senior management hired before March 31, 2008 for SJWC and January 1, 2009 for CTWS are eligible to receive additional retirement benefits under the supplemental executive retirement plans and retirement contracts (collectively, “SERP”). SJWC’s senior management hired on or after March 31, 2008 are eligible to receive additional retirement benefits under SJWC’s Cash Balance Executive Supplemental Retirement Plan ("Cash Balance Executive Supplemental Retirement Plan"). Both of the
plans are non-qualified plans in which only senior management and other designated members of management may participate. The annual cost of the plans has been included in the determination of the net periodic benefit cost shown below. The SERP and Cash Balance Executive Supplemental Retirement Plan had a projected benefit obligation of $39,455 and $50,742 as of December 31, 2022 and 2021, respectively, and net periodic pension cost of $4,400, $4,456 and $4,480 for 2022, 2021 and 2020, respectively. For the year ended December 31, 2022, 2021 and 2020, the amounts not recognized as a component of net periodic benefit cost was $1,640, $901, and $(1,190), respectively, recorded as other comprehensive income on the consolidated financial statements. SJWC’s non-qualified plans are unfunded while CTWS’s SERP is funded through investments consisting primarily of life insurance contracts and assets in a Rabbi Trust. As of December 31, 2022 and 2021, total investments made to fund CTWS’s SERP was $6,395 and $8,147, respectively, which is included in “Investments” in SJW Group’s Consolidated Balance Sheets. The life insurance contracts are valued at cash surrender value of the policies as reported by the insurer. As of December 31, 2022 and 2021, the value of the life insurance contracts was $3,420 and $4,191, respectively.
The following tables summarize the fair values of the Rabbi Trust investment assets to fund CTWS’s SERP by major categories as of December 31, 2022 and 2021 :

  
Fair Value Measurements at December 31, 2022
Asset CategoryTotalQuoted
Prices in
Active
Markets for
Identical
Assets
(Level 1)		Significant
Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)
Money market funds$49 49 — — 
Mutual funds2,032 2,032 — — 
Fixed income728 728 — — 
Total$2,809 2,809 — — 
  
Fair Value Measurements at December 31, 2021
Asset CategoryTotalQuoted
Prices in
Active
Markets for
Identical
Assets
(Level 1)		Significant
Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)
Money market funds$186 186 — — 
Mutual funds2,691 2,691 — — 
Fixed income920 920 — — 
Total$3,797 3,797 — — 
Other Postretirement Benefits
In addition to providing pension and savings benefits, the company also provides health care and life insurance benefits for eligible retired employees under the respective employer-sponsored post-retirement benefits other than pension plans. The benefits are paid by the company and not from plan assets due to limitations imposed by Internal Revenue Service.
Flexible Spending Plan
SJW Group sponsors flexible spending account plans for its employees for the purpose of providing eligible employees with the opportunity to choose from among the fringe benefits available under the plans. The flexible spending plan is intended to qualify as a cafeteria plan under the provisions of the Internal Revenue Code Section 125. The flexible spending plan allows employees to save pre-tax income in a Health Care Spending Account (“HCSA”) and/or a Dependent Care Spending Account (“DCSA”) to help defray the cost of out-of-pocket medical and dependent care expenses. The annual maximum limit under the HCSA and DCSA plans is $2.5 and $5, respectively.
Savings Plans for Employees
SJW Group also sponsors salary deferral plans which are defined contribution plans that allow employees to defer and contribute a portion of their earnings to the plan. Contributions, not to exceed set limits, are matched by the company. For
CTWS’s employees hired on or after January 1, 2009 and ineligible to participate in the defined benefit pension plan, CTWS contributes an additional 1.5% of eligible contributions. SJW Group contributions were $3,003, $2,822 and $2,824 in 2022, 2021 and 2020, respectively. All of the company’s contributions are invested at the direction of the employees in funds offered under the plans.
Special Deferral Election Plans and Deferral Election Program
SJW Group maintains a special deferral election plan and a deferred compensation plan and agreements for senior management and a deferral election program for non-employee directors allowing for the deferral of a portion of their earnings each year and to realize an investment return on those funds during the deferral period. Senior management and non-employee directors have to make an election on the deferral and distribution method of the deferrals before services are rendered. CTWS’s deferred compensation plan allows the company to make discretionary contributions. Senior management and non-employee directors had deferred $6,197 and $6,237 under the plans as of December 31, 2022 and 2021, respectively. As of December 31, 2022 and 2021, $4,508 and $4,599, respectively, of the total amount deferred is related to CTWS agreements.
Assumptions Utilized on Actuarial Calculations
Net periodic cost for the defined benefit plans and other postretirement benefits was calculated using the following weighted-average assumptions:
 Pension BenefitsOther Benefits
 202220212020202220212020
%%%%%%
Discount rate
2.65 - 2.82
2.29 - 2.48
3.05 - 3.23
2.61 - 2.76
2.18 - 2.41
2.59 - 3.18
Expected return on plan assets
6.50, 6.75
6.50, 6.75
6.50, 6.75
4.20, 6.00
4.20, 6.50
4.20, 6.50
Rate of compensation increase
4.00, 4.50
4.004.00N/AN/AN/A
The expected rate of return on plan assets was determined based on a review of historical returns, for the pension plans and for medium- to large-sized defined benefit pension funds with similar asset allocations. This review generated separate expected returns for each asset class. These expected future returns were then blended based on the pension plans’ target asset allocations.
Benefit obligations for the defined benefit plans and other postretirement benefits were calculated using the following weighted-average assumptions as of December 31:
 Pension BenefitsOther Benefits
 2022202120222021
 %%%%
Discount rate
4.95 - 5.24
2.65 - 2.82
4.96 - 5.21
2.61 - 2.76
Rate of compensation increase
4.50, 5.00
4.00N/AN/A
SJW Group utilized each plan’s projected benefit stream in conjunction with the FTSE Pension Discount Curve (formerly the Citigroup Pension Discount Curve) in determining the discount rate used in calculating the pension and other postretirement benefits liabilities at the measurement date.
In 2022 and 2021, SJW Group adopted the newly then issued MP-2021, Mortality Improvement Scales to determine mortality assumptions. The tables and scales reflect increasing life expectancies of participants in the United States. See also “Reconciliation of Funded Status” below.
Net Periodic Pension Costs
Net periodic costs for the defined benefit plans and other postretirement benefits for the years ended December 31 was as follows:
 Pension BenefitsOther Benefits
 202220212020202220212020
Components of net periodic benefit cost
Service cost$9,359 9,730 8,659 $1,032 1,115 900 
Interest cost10,708 9,415 10,484 883 806 956 
Expected return on assets(18,841)(18,019)(15,715)(1,047)(970)(857)
Amortization of prior service cost17 41 41 — — 97 
Recognized actuarial loss/(gain)4,620 6,901 4,971 (115)257 229 
Recognition of significant event(1,595)— — — — — 
Net periodic benefit cost$4,268 8,068 8,440 $753 1,208 1,325 
Reconciliation of Funded Status
For the defined benefit plans and other postretirement benefits, the benefit obligation is the projected benefit obligation and the accumulated benefit obligation, respectively. The projected benefit obligations and the funded status of the defined benefit pension and other postretirement plans as of December 31 were as follows:
 Pension BenefitsOther Benefits
 2022202120222021
Change in benefit obligation
Benefit obligation at beginning of year$383,838 386,091 $34,412 35,794 
Service cost9,359 9,730 1,032 1,115 
Interest cost10,708 9,415 883 806 
Actuarial (gain)/loss(94,793)(5,477)(9,360)(2,235)
Implicit rate subsidy— — (236)(222)
Plan participants contributions— — 207 171 
Administrative expenses paid(136)(144)— — 
Benefits paid and settlements(19,853)(15,777)(1,108)(1,017)
Benefit obligation at end of year$289,123 383,838 $25,830 34,412 
Change in plan assets
Fair value of assets at beginning of year$310,176 278,124 $21,767 19,479 
Actual return on plan assets(49,939)34,826 (3,606)2,460 
Employer contributions11,712 13,147 626 669 
Plan participants contributions— — 207 171 
Administrative expenses paid(136)(144)(65)(63)
Benefits paid and settlements(19,853)(15,777)(977)(949)
Fair value of plan assets at end of year251,960 310,176 17,952 21,767 
Funded status at end of year$(37,163)(73,662)$(7,878)(12,645)
The amounts recognized on the balance sheet as of December 31 were as follows:
 Pension BenefitsOther Benefits
 2022202120222021
Noncurrent assets$16,005 6,422 $679 — 
Current liabilities(2,089)(2,782)(139)(139)
Noncurrent liabilities(51,079)(77,302)(8,418)(12,506)
$(37,163)(73,662)$(7,878)(12,645)
SJW Group recorded a regulatory asset on the projected benefit obligation of the postretirement benefit plans as follows:
20222021
Funded status of obligation$45,041 86,307 
Accrued benefit cost(13,548)(24,110)
Regulatory asset, amount to be recovered in future rates$31,493 62,197 
As of December 31, 2022 and 2021, the amounts deferred in regulatory assets that have not yet been recognized as components of net periodic benefit cost include net loss of $31,549 and $62,270, respectively, and prior service cost of $56 and $73, respectively.
Plan Assets
Plan assets as of December 31 were as follows:
 Pension BenefitsOther Benefits
 2022202120222021
Fair value of assets at end of year:
Debt securities$90,914 100,036 $5,330 5,541 
36 %32 %30 %25 %
Equity securities147,864 197,248 11,711 14,932 
59 %64 %65 %69 %
Cash and equivalents13,182 12,892 911 1,294 
5 %4 %5 %6 %
Total$251,960 310,176 $17,952 21,767 
The following tables summarize the fair values of plan assets by major categories as of December 31, 2022 and 2021:
  
Fair Value Measurements at December 31, 2022
Asset CategoryTotalQuoted
Prices in
Active
Markets for
Identical
Assets
(Level 1)		Significant
Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)
Cash and cash equivalents$14,093 14,093 — — 
Equity securities (a)159,575 159,575 — — 
Fixed Income (b)96,244 30,863 65,381 — 
Total$269,912 204,531 65,381 — 
___________________________________
(a)Actively managed portfolio of equity securities with the goal to exceed the benchmark performance.
(b)Actively managed portfolio of fixed income securities with the goal to exceed the benchmark performance
  
Fair Value Measurements at December 31, 2021
Asset CategoryTotalQuoted
Prices in
Active
Markets for
Identical
Assets
(Level 1)		Significant
Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)
Cash and cash equivalents$14,186 14,186 — — 
Equity securities212,180 212,180 — — 
Fixed Income105,577 38,608 66,969 — 
Total$331,943 264,974 66,969 — 
In 2023, SJW Group expects to make required and discretionary cash contributions of up to $9,115 to the pension plans and other postretirement benefit plans.
Benefits expected to be paid in the next five years and in the aggregate for the five years thereafter are:
Pension PlanOther Postretirement
Benefit Plan
2023$15,656 $1,612 
202416,535 1,839 
202516,867 1,869 
202621,301 1,886 
202718,722 1,898 
2028 - 203297,964 9,215