Employee Benefit Plans

3 Months Ended

Mar. 31, 2016

Compensation and Retirement Disclosure [Abstract]

Employee Benefit Plans

Employee Benefit Plans

In the first quarter of 2016, the Companies announced an organizational design initiative that will reduce their total workforces during 2016. The goal of the organizational design initiative was to streamline our leadership structure and push decision making lower while also improving efficiency.  In the first quarter of 2016, Dominion recorded a $70 million ($43 million after-tax) charge, including $40 million ($25 million after-tax) at Virginia Power and $8 million ($5 million after-tax) at Dominion Gas, primarily reflected in other operations and maintenance expense in their Consolidated Statements of Income due to severance pay and other costs related to the organizational design initiative.  The terms of the severance under the organizational design initiative were consistent with the Companies’ existing severance plans.

Dominion

The components of Dominion's provision for net periodic benefit cost (credit) were as follows:

	Pension Benefits						Other Postretirement Benefits
	2016			2015			2016			2015
(millions)
Three Months Ended March 31,
Service cost	$	29		$	32		$	8		$	10
Interest cost	77			72			17			17
Expected return on plan assets	(139		)	(133		)	(29		)	(29		)
Amortization of prior service credit	—			—			(7		)	(7		)
Amortization of net actuarial loss	28			40			1			1
Net periodic benefit cost (credit)	$	(5	)	$	11		$	(10	)	$	(8	)

Employer Contributions

During the three months ended March 31, 2016, Dominion made no contributions to its defined benefit pension plans or other postretirement benefit plans. Dominion expects to contribute approximately $12 million to its other postretirement benefit plans through VEBAs during the remainder of 2016.

Dominion Gas

Dominion Gas participates in certain Dominion benefit plans as described in Note 21 to the Consolidated Financial Statements in the Companies' Annual Report on Form 10-K for the year ended December 31, 2015. See Note 17 for more information.

The components of Dominion Gas' provision for net periodic benefit credit for employees represented by collective bargaining units were as follows:

	Pension Benefits						Other Postretirement Benefits
	2016			2015			2016			2015
(millions)
Three Months Ended March 31,
Service cost	$	3		$	3		$	1		$	2
Interest cost	8			7			3			3
Expected return on plan assets	(33		)	(31		)	(5		)	(6		)
Amortization of net actuarial loss	3			5			—			1
Net periodic benefit credit	$	(19	)	$	(16	)	$	(1	)	$	—

Employer Contributions

During the three months ended March 31, 2016, Dominion Gas made no contributions to its defined benefit pension plans or other postretirement benefit plans. Dominion Gas expects to contribute approximately $12 million to its other postretirement benefit plans through VEBAs, for both employees represented by collective bargaining units and employees not represented by collective bargaining units, during the remainder of 2016.