Employee Benefit Plans

12 Months Ended

Dec. 31, 2020

Compensation And Retirement Disclosure [Abstract]

Employee Benefit Plans

NOTE 22. EMPLOYEE BENEFIT PLANS

Dominion Energy—Defined Benefit Plans

Dominion Energy provides certain retirement benefits to eligible active employees, retirees and qualifying dependents. Under the terms of its benefit plans, Dominion Energy reserves the right to change, modify or terminate the plans. From time to time in the past, benefits have changed, and some of these changes have reduced benefits.

Dominion Energy maintains qualified noncontributory defined benefit pension plans covering virtually all employees. Retirement benefits are based primarily on years of service, age and the employee’s compensation. Dominion Energy’s funding policy is to contribute annually an amount that is in accordance with the provisions of ERISA. The pension programs also provide benefits to certain retired executives under company-sponsored nonqualified employee benefit plans. The nonqualified plans are funded through contributions to grantor trusts. Dominion Energy also provides retiree healthcare and life insurance benefits with annual employee premiums based on several factors such as age, retirement date and years of service.

Pension and other postretirement benefit costs are affected by employee demographics (including age, compensation levels and years of service), the level of contributions made to the plans and earnings on plan assets. These costs may also be affected by changes in key assumptions, including expected long-term rates of return on plan assets, discount rates, healthcare cost trend rates, mortality rates and the rate of compensation increases.

Dominion Energy uses December 31 as the measurement date for all of its employee benefit plans. Dominion Energy uses the market-related value of pension plan assets to determine the expected return on plan assets, a component of net periodic pension cost, for all pension plans. The market-related value recognizes changes in fair value on a straight-line basis over a four-year period, which reduces year-to-year volatility. Changes in fair value are measured as the difference between the expected and actual plan asset returns, including dividends, interest and realized and unrealized investment gains and losses. Since the market-related value recognizes changes in fair value over a four-year period, the future market-related value of pension plan assets will be impacted as previously unrecognized changes in fair value are recognized.

Dominion Energy’s pension and other postretirement benefit plans hold investments in trusts to fund employee benefit payments. Dominion Energy’s pension and other postretirement plan assets experienced aggregate actual returns (losses) of  $1.9 billion and $2.1 billion in 2020 and 2019, respectively, versus expected returns of $933 million and $848 million, respectively. Differences between actual and expected returns on plan assets are accumulated and amortized during future periods. As such, any investment-related declines in these trusts will result in future increases in the net periodic cost recognized for such employee benefit plans and will be included in the determination of the amount of cash to be contributed to the employee benefit plans.

In the third quarter of 2020, Dominion Energy remeasured certain pension plans due to a curtailment resulting from entering an agreement to sell substantially all of its gas transmission and storage operations to BHE. The remeasurement resulted in an increase in the pension benefit obligation of $497 million and a decrease in the fair value of the pension plan assets of $87 million. The impact of the remeasurement on net periodic pension benefit cost (credit) was recognized prospectively from the remeasurement date. The remeasurement increased the net periodic benefit credit by approximately $4 million for the year ending December 31, 2020, excluding the impacts of curtailments. The discount rate used for the remeasurement was 3.11% - 3.16% with all other assumptions used for the remeasurement consistent with the measurement as of December 31, 2019.

In the fourth quarter of 2020, Dominion Energy remeasured certain other postretirement benefit plans due to a curtailment and settlement resulting from Dominion Energy completing the GT&S Transaction. The remeasurement resulted in an increase in the accumulated postretirement benefit obligation of $16 million and a decrease in the fair value of the other postretirement benefit plan assets of $25 million. The impact of the remeasurement on net periodic benefit cost (credit) was recognized prospectively from the remeasurement date. The discount rate used for the remeasurement was 3.07% - 3.11%.  The initial healthcare cost trend rate used for the remeasurement was 6.25% and decreased to 5.00% by 2025-2026.  All other assumptions used for the remeasurement consistent with the measurement as of December 31, 2019.

Voluntary Retirement Program

In March 2019, the Companies announced a voluntary retirement program to employees that meet certain age and service requirements. In 2019, upon the determinations made concerning the number of employees that elected to participate in the program, Dominion Energy recorded a charge of $427 million ($319 million after-tax) included within other operations and maintenance expense ($251 million), other taxes ($21 million), other income ($111 million) and discontinued operations ($44 million) and Virginia Power recorded a charge of $198 million ($146 million after-tax) included within other operations and maintenance expense ($190 million) and other taxes ($8 million) in their respective Consolidated Statements of Income.

In the second quarter of 2019, Dominion Energy remeasured its pension and other postretirement benefit plans as a result of the voluntary retirement program. The remeasurement resulted in an increase in the pension benefit obligation of $484 million and an increase in the fair value of the pension plan assets of $671 million. In addition, the remeasurement resulted in an increase in the accumulated postretirement benefit obligation of $101 million and an increase in the fair value of the other postretirement benefit plan assets of $156 million. The impact of the remeasurement on net periodic benefit cost (credit) was recognized prospectively from the remeasurement date. The discount rate used for the remeasurement was 4.07%—4.10% for the Dominion Energy pension plans and 4.05%—4.08% for the Dominion Energy other postretirement benefit plans. All other assumptions used for the remeasurement were consistent with the measurement as of December 31, 2018. 

In the third quarter of 2019, Dominion Energy remeasured a pension plan as a result of a settlement from the voluntary retirement program at SCANA. The settlement and related remeasurement resulted in an increase in the pension benefit obligation of $37 million and an increase in the fair value of the pension plan assets of $51 million for Dominion Energy. The impact of the remeasurement on net periodic benefit cost (credit) was recognized prospectively from the remeasurement date. The discount rate used for the remeasurement was 3.57%.  All other assumptions used for the remeasurement were consistent with the measurement as of December 31, 2018.  

Funded Status

The following table summarizes the changes in pension plan and other postretirement benefit plan obligations and plan assets and includes a statement of the plans’ funded status for Dominion Energy:

	Pension Benefits						Other Postretirement Benefits
Year Ended December 31,	2020			2019			2020			2019
(millions, except percentages)
Dominion Energy
Changes in benefit obligation:
Benefit obligation at beginning of year	$	10,446		$	8,500		$	1,769		$	1,363
Dominion Energy SCANA Combination (See Note 3)		—			854			—			253
Service cost		173			162			28			26
Interest cost		351			394			58			68
Benefits paid		(461	)		(470	)		(120	)		(96	)
Actuarial (gains) losses during the year		992			1,054			33			111
Plan amendments		—			—			(6	)		—
Settlements, curtailments and special termination benefits(1)		(138	)		(48	)		(16	)		44
Benefit obligation at end of year	$	11,363		$	10,446		$	1,746		$	1,769
Changes in fair value of plan assets:
Fair value of plan assets at beginning of year	$	9,631		$	7,197		$	1,880		$	1,581
Dominion Energy SCANA Combination (See Note 3)		—			727			—			—
Actual return (loss) on plan assets		1,602			1,747			300			349
Employer contributions		278			557			13			12
Benefits paid		(461	)		(470	)		(93	)		(62	)
Settlements(2)		(71	)		(127	)		—			—
Fair value of plan assets at end of year	$	10,979		$	9,631		$	2,100		$	1,880
Funded status at end of year	$	(384	)	$	(815	)	$	354		$	111
Amounts recognized in the Consolidated Balance Sheets    at December 31:
Noncurrent pension and other postretirement benefit assets	$	1,054		$	1,266		$	650		$	442
Other current liabilities		(14	)		(29	)		(15	)		(17	)
Noncurrent pension and other postretirement benefit liabilities		(1,424	)		(2,052	)		(281	)		(314	)
Net amount recognized	$	(384	)	$	(815	)	$	354		$	111
Significant assumptions used to determine benefit    obligations as of December 31:
Discount rate	2.73%–2.95%			3.47%–3.63%			2.69%–2.80%			3.44%–3.52%
Weighted average rate of increase for compensation		4.53	%		4.23	%	n/a			n/a
Crediting interest rate for cash balance and similar plans	1.93% - 2.15%			2.67-2.83%			n/a			n/a

(1) 2020 amounts include curtailments and settlements recognized as a result of the GT&S Transaction as well as settlements of qualified and nonqualified pension obligations. 2019 amounts relate primarily to a curtailment and settlement as a result of the voluntary retirement program.  

(2) 2020 amounts relate primarily to settlements of qualified and nonqualified pension obligations. 2019 amounts relate primarily to a settlement as a result of the voluntary retirement program.

Actuarial losses recognized during 2020 and 2019 in Dominion Energy’s pension benefit obligations include a $1.0 billion and a $1.1 billion loss, respectively, resulting from decreases in discount rates. Actuarial losses recognized during 2020 in Dominion Energy’s other postretirement benefit obligations include a $149 million loss resulting from a decrease in discount rates, and were partially offset by a $85 million actuarial gain as a result of a completed experience study in one of Dominion Energy’s other postretirement plans and the impact of an update to healthcare claims assumptions. Actuarial losses recognized during 2019 in Dominion Energy’s other postretirement benefit obligations include a $168 million loss resulting from a decrease in discount rates and were partially offset by a $55 million actuarial gain as a result of the impact of an update to healthcare claims and other healthcare-related cost assumptions.

The ABO for all of Dominion Energy’s defined benefit pension plans was $10.6 billion and $9.7 billion at December 31, 2020 and 2019, respectively.

Under its funding policies, Dominion Energy evaluates plan funding requirements annually, usually in the fourth quarter after receiving updated plan information from its actuary. Based on the funded status of each plan and other factors, Dominion Energy determines the amount of contributions for the current year, if any, at that time. In December 2020, Dominion Energy contributed $250 million to its qualified defined benefit pension plans. During 2019, Dominion Energy made $520 million of contributions to its qualified defined benefit pension plans, including 6.1 million shares of its common stock valued at $499 million. The shares were contributed through a private placement, exempt from registration requirements, with an independent fiduciary and investment manager to a separate account within the qualified defined benefit pension plans. Dominion Energy also entered into a registration rights agreement with the independent fiduciary and investment manager pursuant to which Dominion Energy agreed to provide

registrations rights on customary terms with respect to the shares. Dominion Energy expects to make $17 million of contributions for its qualified pension plans in 2021.

Certain of Dominion Energy’s subsidiaries fund other postretirement benefit costs through VEBAs. Dominion Energy’s remaining subsidiaries do not prefund other postretirement benefit costs but instead pay claims as presented. Dominion Energy did not make any contributions to VEBAs associated with its other postretirement plans in 2020.

The following table provides information on the benefit obligations and fair value of plan assets for plans with a benefit obligation in excess of plan assets for Dominion Energy:

	Pension Benefits				Other Postretirement Benefits
As of  December 31,	2020		2019		2020(1)		2019
(millions)
Dominion Energy
Benefit obligation	$	10,697	$	9,552	$	305	$	341
Fair value of plan assets		9,259		7,471		9		10

The following table provides information on the ABO and fair value of plan assets for Dominion Energy’s pension plans with an ABO in excess of plan assets:

As of  December 31,	2020		2019
(millions)
Accumulated benefit obligation	$	9,970	$	8,852
Fair value of plan assets		9,259		7,471

The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid for Dominion Energy’s plans:

	Estimated Future Benefit Payments
	Pension Benefits		Other Postretirement Benefits
(millions)
Dominion Energy
2021	$	486	$	110
2022		512		108
2023		515		106
2024		533		104
2025		535		101
2026-2030		2,792		478

Plan Assets

Dominion Energy’s overall objective for investing its pension and other postretirement plan assets is to achieve appropriate long-term rates of return commensurate with prudent levels of risk. To minimize risk, funds are broadly diversified among asset classes, investment strategies and investment advisors. The strategic target asset allocations for substantially all of Dominion Energy’s pension funds are 28% U.S. equity, 18% non-U.S. equity, 35% fixed income, 3% real estate and 16% other alternative investments. U.S. equity includes investments in large-cap, mid-cap and small-cap companies located in the U.S. Non-U.S. equity includes investments in large-cap and small-cap companies located outside of the U.S. including both developed and emerging markets. Fixed income includes corporate debt instruments of companies from diversified industries and U.S. Treasuries. The U.S. equity, non-U.S. equity and fixed income investments are in individual securities as well as mutual funds. Real estate includes equity real estate investment trusts and investments in partnerships. Other alternative investments include partnership investments in private equity, debt and hedge funds that follow several different strategies.

Dominion Energy also utilizes common/collective trust funds as an investment vehicle for its defined benefit plans. A common/collective trust fund is a pooled fund operated by a bank or trust company for investment of the assets of various organizations and individuals in a well-diversified portfolio. Common/collective trust funds are funds of grouped assets that follow various investment strategies.

Strategic investment policies are established for Dominion Energy’s prefunded benefit plans based upon periodic asset/liability studies. Factors considered in setting the investment policy include employee demographics, liability growth rates, future discount rates, the funded status of the plans and the expected long-term rate of return on plan assets. Deviations from the plans’ strategic allocation are a function of Dominion Energy’s assessments regarding short-term risk and reward opportunities in the capital markets and/or short-term market movements which result in the plans’ actual asset allocations varying from the strategic target asset allocations. Through periodic rebalancing, actual allocations are brought back in line with the target. Future asset/liability studies will focus on strategies to further reduce pension and other postretirement plan risk, while still achieving attractive levels of returns. Financial derivatives may be used to obtain or manage market exposures and to hedge assets and liabilities.

For fair value measurement policies and procedures related to pension and other postretirement benefit plan assets, see Note 6.

The fair values of Dominion Energy’s pension plan assets by asset category are as follows:

At December 31,	2020								2019
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
(millions)
Dominion Energy
Cash and cash equivalents	$	20	$	1	$	—	$	21	$	22	$	1	$	—	$	23
Common and preferred stocks:
U.S.(1)		2,405		—		—		2,405		2,284		—		—		2,284
International		1,727		—		—		1,727		1,634		—		—		1,634
Insurance contracts		—		409		—		409		—		360		—		360
Corporate debt instruments		32		1,385		—		1,417		273		859		—		1,132
Government securities		30		772		—		802		58		757		—		815
Total recorded at fair value	$	4,214	$	2,567	$	—	$	6,781	$	4,271	$	1,977	$	—	$	6,248
Assets recorded at NAV(2):
Common/collective trust funds								2,905								2,355
Alternative investments:
Real estate funds								108								91
Private equity funds								856								787
Debt funds								168								159
Hedge funds								13								14
Total recorded at NAV							$	4,050							$	3,406
Total investments(3)							$	10,831							$	9,654

(1) Includes $365 million and $508 million of Dominion Energy common stock at December 31, 2020 and 2019, respectively.

(2) These investments that are measured at fair value using the NAV per share (or its equivalent) as a practical expedient are not required to be categorized in the fair value hierarchy.

(3) Excludes net assets related to pending sales of securities and advanced subscriptions of $198 million, net accrued income of $20 million, and includes net assets related to pending purchases of securities of $71 million at December 31, 2020. Excludes net assets related to pending sales of securities of $52 million, net accrued income of $24 million, and includes net assets related to pending purchases of securities of $99 million at December 31, 2019.

The fair values of Dominion Energy’s other postretirement plan assets by asset category are as follows:  

At December 31,	2020								2019
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
(millions)
Dominion Energy
Cash and cash equivalents	$	—	$	2	$	—	$	2	$	2	$	—	$	—	$	2
Common and preferred stocks:
U.S.		817		—		—		817		719		—		—		719
International		240		—		—		240		206		—		—		206
Insurance contracts		—		23		—		23		—		21		—		21
Corporate debt instruments		2		60		—		62		1		50		—		51
Government securities		2		42		—		44		2		44		—		46
Total recorded at fair value	$	1,061	$	127	$	—	$	1,188	$	930	$	115	$	—	$	1,045
Assets recorded at NAV(1):
Common/collective trust funds								765								717
Alternative investments:
Real estate funds								10								8
Private equity funds								117								100
Debt funds								10								10
Hedge funds								1								1
Total recorded at NAV							$	903							$	836
Total investments(2)							$	2,091							$	1,881

(1) These investments that are measured at fair value using the NAV per share (or its equivalent) as a practical expedient are not required to be categorized in the fair value hierarchy.

(2) Excludes net assets related to pending sales of securities of $10 million, net accrued income of $2 million, and includes net assets related to pending purchases of securities of $2 million at December 31, 2020. Excludes net assets related to pending sales of securities of $2 million, net accrued income of $2 million, and includes net assets related to pending purchases of securities of $5 million at December 31, 2019.

The plan assets investments are determined based on the fair values of the investments and the underlying investments, which have been determined as follows:

• Cash and Cash Equivalents—Investments are held primarily in short-term notes and treasury bills, which are valued at cost plus accrued interest.

• Common and Preferred Stocks—Investments are valued at the closing price reported on the active market on which the individual securities are traded.

• Insurance Contracts—Investments in Group Annuity Contracts with John Hancock were entered into after 1992 and are stated at fair value based on the fair value of the underlying securities as provided by the managers and include investments in U.S. government securities, corporate debt instruments and state and municipal debt securities.

• Corporate Debt Instruments—Investments are valued using pricing models maximizing the use of observable inputs for similar securities. This includes basing value on yields currently available on comparable securities of issuers with similar credit ratings. When quoted prices are not available for identical or similar instruments, the instrument is valued under a discounted cash flows approach that maximizes observable inputs, such as current yields of similar instruments, but includes adjustments for certain risks that may not be observable, such as credit and liquidity risks or a broker quote, if available.

• Government Securities—Investments are valued using pricing models maximizing the use of observable inputs for similar securities.

• Common/Collective Trust Funds—Common/collective trust funds invest in debt and equity securities and other instruments with characteristics similar to those of the funds’ benchmarks. The primary objectives of the funds are to seek investment returns that approximate the overall performance of their benchmark indexes. These benchmarks are major equity indices, fixed income indices and money market indices that focus on growth, income and liquidity strategies, as applicable. Investments in common/collective trust funds are stated at the NAV as determined by the issuer of the common/collective trust funds and are based on the fair value of the underlying investments held by the fund less its liabilities. The NAV is used as a practical expedient to estimate fair value. The common/collective trust funds do not have any unfunded commitments, and do not have any applicable liquidation periods or defined terms/periods to be held. The

majority of the common/collective trust funds have limited withdrawal or redemption rights during the term of the investment.

• Alternative Investments—Investments in real estate funds, private equity funds, debt funds and hedge funds are stated at fair value based on the NAV of the plan’s proportionate share of the partnership, joint venture or other alternative investment’s fair value as determined by reference to audited financial statements or NAV statements provided by the investment manager. The NAV, which is used as a practical expedient to estimate fair value, is adjusted for contributions and distributions occurring between the investment manager’s and Dominion Energy’s measurement date. These valuations also involve assumptions and methods that are reviewed, evaluated, and adjusted, if necessary, by Dominion Energy.

Net Periodic Benefit (Credit) Cost

The service cost component of net periodic benefit (credit) cost is reflected in other operations and maintenance expense in Dominion Energy’s Consolidated Statements of Income, except for $13 million, $16 million and $18 million for the years ended December 31, 2020, 2019 and 2018, respectively, presented in discontinued operations. The non-service cost components of net periodic benefit (credit) cost are reflected in other income in Dominion Energy’s Consolidated Statements of Income. The components of the provision for net periodic benefit (credit) cost and amounts recognized in other comprehensive income and regulatory assets and liabilities for Dominion Energy plans are as follows:  

	Pension Benefits									Other Postretirement Benefits
Year Ended December 31,	2020			2019			2018			2020			2019			2018
(millions, except percentages)
Dominion Energy
Service cost	$	173		$	162		$	157		$	28		$	26		$	27
Interest cost		351			394			337			58			68			56
Expected return on plan assets		(777	)		(708	)		(663	)		(156	)		(140	)		(143	)
Amortization of prior service (credit) cost		1			1			1			(49	)		(52	)		(52	)
Amortization of net actuarial loss		206			172			193			6			10			11
Settlements, curtailments and special termination benefits		14			72			—			(59	)		42			—
Net periodic benefit (credit) cost	$	(32	)	$	93		$	25		$	(172	)	$	(46	)	$	(101	)
Changes in plan assets and benefit obligations    recognized in other comprehensive income    and regulatory assets and liabilities:
Current year net actuarial (gain) loss	$	166		$	16		$	490		$	(110	)	$	(98	)	$	78
Prior service (credit) cost		—			—			—			(6	)		2			(4	)
Settlements and curtailments		(81	)		6			—			59			—			—
Less amounts included in net periodic benefit    cost:
Amortization of net actuarial loss		(206	)		(172	)		(193	)		(6	)		(10	)		(11	)
Amortization of prior service credit (cost)		(1	)		(1	)		(1	)		49			52			52
Total recognized in other comprehensive    income and regulatory assets and liabilities	$	(122	)	$	(151	)	$	296		$	(14	)	$	(54	)	$	115
Significant assumptions used to determine    periodic cost:
Discount rate	2.77%-3.63%			3.57%-4.43%			3.80%-3.81%			3.07%-3.52%			4.05% to 4.41%			3.76%
Expected long-term rate of return on plan assets	7.00%-8.60%			7.00% -8.65%				8.75	%		8.50	%		8.50	%		8.50	%
Weighted average rate of increase for    compensation		4.23	%		4.20	%		4.09	%	n/a			n/a			n/a
Crediting interest rate for cash balance and similar plans	2.31-2.83%			2.77-3.63%			3.00-3.01%			n/a			n/a			n/a
Healthcare cost trend rate(1)											6.25	%	6.50% to 6.60%				7.00	%
Rate to which the cost trend rate is assumed to    decline (the ultimate trend rate)(1)											5.00	%		5.00	%		5.00	%
Year that the rate reaches the ultimate trend rate(1)										2025-2026			2023-2025			2022

(1) Assumptions used to determine net periodic cost for the following year.

The components of AOCI and regulatory assets and liabilities for Dominion Energy’s plans that have not been recognized as components of net periodic benefit (credit) cost are as follows:

	Pension Benefits				Other Postretirement Benefits
At December 31,	2020		2019		2020			2019
(millions)
Dominion Energy
Net actuarial loss	$	3,207	$	3,327	$	120		$	241
Prior service (credit) cost		4		5		(232	)		(339	)
Total(1)	$	3,211	$	3,332	$	(112	)	$	(98	)

(1) As of December 31, 2020, of the $3.2 billion and $(112) million related to pension benefits and other postretirement benefits, $1.9 billion and $(40) million, respectively, are included in AOCI, with the remainder included in regulatory assets and liabilities. As of December 31, 2019, of the $3.3 billion and $(98) million related to pension benefits and other postretirement benefits, $2.0 billion and $(65) million, respectively, are included in AOCI, with the remainder included in regulatory assets and liabilities.

The expected long-term rates of return on plan assets, discount rates, healthcare cost trend rates and mortality are critical assumptions in determining net periodic benefit (credit) cost. Dominion Energy develops non-investment related assumptions, which are then compared to the forecasts of an independent investment advisor to ensure reasonableness. An internal committee selects the final assumptions used for Dominion Energy’s pension and other postretirement plans including discount rates, expected long-term rates of return, healthcare cost trend rates and mortality rates.

Dominion Energy determines the expected long-term rates of return on plan assets for its pension plans and other postretirement benefit plans by using a combination of:

• Expected inflation and risk-free interest rate assumptions;

• Historical return analysis to determine long term historic returns as well as historic risk premiums for various asset classes;

• Expected future risk premiums, asset classes’ volatilities and correlations;

• Forward-looking return expectations derived from the yield on long-term bonds and the expected long-term returns of major capital market assumptions; and

• Investment allocation of plan assets.

Dominion Energy determines discount rates from analyses of AA/Aa rated bonds with cash flows matching the expected payments to be made under its plans.

Mortality rates are developed from actual and projected plan experience for postretirement benefit plans. Dominion Energy’s actuary conducts an experience study periodically as part of the process to select its best estimate of mortality. Dominion Energy considers both standard mortality tables and improvement factors as well as the plans’ actual experience when selecting a best estimate.

Assumed healthcare cost trend rates have a significant effect on the amounts reported for Dominion Energy’s retiree healthcare plans. Dominion Energy establishes the healthcare cost trend rate assumption based on analyses of various factors including the specific provisions of its medical plans, actual cost trends experienced and projected and demographics of plan participants.

Virginia Power—Participation in Defined Benefit Plans

Virginia Power employees are covered by the Dominion Energy Pension Plan described above. As a participating employer, Virginia Power is subject to Dominion Energy’s funding policy, which is to contribute annually an amount that is in accordance with ERISA. During 2020, Virginia Power made a payment to Dominion Energy for $313 million related to its participation in the Dominion Energy Pension Plan. In addition, in December 2020, Dominion Energy notified Virginia Power of a required contribution of $151 million, recorded in payables to affiliates in Virginia Power’s Consolidated Balance Sheets at December 31, 2020. Virginia Power’s net periodic pension cost related to this plan was $118 million, $152 million and $126 million in 2020, 2019 and 2018, respectively. Net periodic benefit (credit) cost is reflected in other operations and maintenance expense in Virginia Power’s Consolidated Statements of Income The funded status of various Dominion Energy subsidiary groups and employee compensation are the basis for determining the share of total pension costs for participating Dominion Energy subsidiaries. See Note 25 for Virginia Power amounts due to/from Dominion Energy related to this plan.

Retiree healthcare and life insurance benefits, for Virginia Power employees are covered by the Dominion Energy Retiree Health and Welfare Plan described above. Virginia Power’s net periodic benefit (credit) cost related to this plan was $(58) million, $(27) million and $(51) million in 2020, 2019 and 2018, respectively. Net periodic benefit (credit) cost is reflected in other operations and maintenance expense in Virginia Power’s Consolidated Statements of Income. Employee headcount is the basis for determining the share of total other postretirement benefit costs for participating Dominion Energy subsidiaries. See Note 25 for Virginia Power amounts due to/from Dominion Energy related to this plan.

Dominion Energy holds investments in trusts to fund employee benefit payments for the pension and other postretirement benefit plans in which Virginia Power’s employees participate. Any investment-related declines in these trusts will result in future increases in the net periodic cost recognized for such employee benefit plans and will be included in the determination of the amount of cash that Virginia Power will provide to Dominion Energy for its share of employee benefit plan contributions.

Virginia Power funds other postretirement benefit costs through VEBAs. During 2020 and 2019, Virginia Power made no contributions to the VEBAs and does not expect to contribute to the VEBAs in 2021.

Defined Contribution Plans

Dominion Energy also sponsors defined contribution employee savings plans that cover substantially all employees. During 2020, 2019 and 2018, Dominion Energy recognized $67 million, $69 million and $46 million, respectively, as employer matching contributions to these plans, excluding discontinued operations. Virginia Power also participates in these employee savings plans. During 2020, 2019 and 2018, Virginia Power recognized $19 million, $20 million and $20 million, respectively, as employer matching contributions to these plans.