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Employee Benefit Plans
 9 Months Ended
Sep. 30, 2020
Compensation And Retirement Disclosure [Abstract]  
Employee Benefit Plans

11. EMPLOYEE BENEFIT PLANS

Components of net periodic benefit cost recorded by DESC were as follows:

 

(millions)

 

Pension Benefits

 

 

Other Postretirement Benefits

 

Three Months Ended September 30,

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Service cost

 

$

3

 

 

$

4

 

 

$

1

 

 

$

1

 

Interest cost

 

 

6

 

 

 

6

 

 

 

2

 

 

 

2

 

Expected return on assets

 

 

(11

)

 

 

(11

)

 

 

—

 

 

 

—

 

Amortization of actuarial losses

 

 

2

 

 

 

2

 

 

 

—

 

 

 

—

 

Settlement loss(1)

 

 

—

 

 

 

11

 

 

 

—

 

 

 

—

 

Net periodic benefit cost

 

$

—

 

 

$

12

 

 

$

3

 

 

$

3

 

Nine Months Ended September 30,

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service cost

 

$

10

 

 

$

11

 

 

$

3

 

 

$

2

 

Interest cost

 

 

18

 

 

 

21

 

 

 

6

 

 

 

6

 

Expected return on assets

 

 

(33

)

 

 

(31

)

 

 

—

 

 

 

—

 

Amortization of actuarial losses

 

 

5

 

 

 

9

 

 

 

—

 

 

 

—

 

Curtailment(1)

 

 

—

 

 

 

6

 

 

 

—

 

 

 

3

 

Settlement loss(1)

 

 

—

 

 

 

11

 

 

 

—

 

 

 

—

 

Net periodic benefit cost

 

$

—

 

 

$

27

 

 

$

9

 

 

$

11

 

(1)

Related to a voluntary retirement program.

No significant contribution to the pension trust is expected for the remainder of 2020 based on current market conditions and assumptions, nor is a limitation on benefit payments expected to apply. DESC recovers current pension costs through either a rate rider that may be adjusted annually for retail electric operations or through cost of service rates for gas operations.

 

Voluntary Retirement Program

In March 2019, Dominion Energy announced a voluntary retirement program to employees, including employees of DESC, that meet certain age and service requirements. In the second quarter of 2019, upon the determinations made concerning the number of employees that elected to participate in the program, DESC recorded a charge of $62 million ($47 million after-tax), of which $50 million was included within other operations and maintenance expense, $3 million within other taxes and $9 million within other income (expense), net. In addition, as a result of the voluntary retirement program, DESC recorded pension plan settlement losses of $11 million within other income (expense), net in the third quarter of 2019.