Top Pension Questions for Dominion Energy Employees
These are the most frequently asked questions for Dominion Energy employees from our weekly webinars.
1. Question:
What specific factors should employees consider when evaluating their retirement benefits under the Dominion Energy Pension Plan, particularly those who were hired before July 1, 2021?
Answer:
Employees hired before July 1, 2021, should consider age, final average earnings, and credited service when reviewing their Dominion Energy Pension Plan benefits. The formula for calculating benefits includes 1.8% of the final average earnings, multiplied by credited service, minus an estimated Social Security benefit. For those transitioning to a Cash Balance Pension Plan after 2021, the benefits are determined differently, based on employer contributions to the employee's Cash Balance Account.
2. Question:
How does the Special Retirement Account feature within the Dominion Energy Pension Plan complement the traditional pension benefits for employees hired before 2008?
Answer:
The Special Retirement Account (SRA) provides an additional benefit for employees hired before 2008, credited with 2% of an employee's pay each month, and grows interest according to IRS guidelines. This account can be accessed either as a lump sum or an annuity, offering additional retirement income. Employees can opt to receive it in conjunction with their traditional pension, enhancing their total retirement benefits.
3. Question:
For employees considering early retirement options under the Dominion Energy Pension Plan, what are the possible impacts on their retirement funds?
Answer:
For those considering early retirement, benefits under the Dominion Energy Pension Plan are reduced for retirements before age 65. Specifically, the reduction is 0.25% per month for retirements between ages 58 and 60, and 0.50% per month for retirements between ages 55 and 58. This can lead to up to a 24% reduction in benefits for those retiring at age 55, impacting their retirement planning.
4. Question:
What actions should Dominion Energy employees take to confirm their beneficiaries are properly recorded in the pension plan?
Answer:
Dominion Energy employees should verify that their beneficiary designations are accurately recorded. For married employees, the spouse is automatically the beneficiary unless another person is designated with spousal consent. Unmarried employees may designate any beneficiary, aligning survivor benefits with their personal situations.
5. Question:
In the event of a disability, how does the Dominion Energy Pension Plan support its employees?
Answer:
Employees eligible for long-term disability under the Dominion Energy Pension Plan continue to accumulate credited service until age 65. Those under the Traditional Pension formula remain eligible for a pension based on their final average earnings and credited service, providing sustained assistance during periods of disability.
6. Question:
What changes have been made to the vesting requirements under the Dominion Energy Pension Plan, and what does it mean for employees hired before and after July 1, 2021?
Answer:
Vesting in the Dominion Energy Pension Plan requires three years of service. For employees hired before July 1, 2021, vesting grants rights to pension benefits that are not forfeitable, regardless of reaching normal retirement age. Employees hired post-July 1, 2021, do not qualify for the pension plan but can access alternative retirement benefits.
7. Question:
How can Dominion Energy employees consider Social Security benefits when planning for retirement?
Answer:
Employees should incorporate their expected Social Security benefits with their Dominion Energy pension projections to formulate a comprehensive retirement income strategy. Using estimated Social Security benefits, employees can outline how both sources will contribute to their retirement.
8. Question:
What tools are available to Dominion Energy employees for estimating their pension benefits and planning their retirement?
Answer:
Dominion Energy offers tools such as the "Your Benefits Resource" website, which provides access to pension information, allows employees to simulate benefit projections, and request retirement estimates. This aids employees in assessing future benefits and understanding their retirement options.
9. Question:
Under what circumstances can Dominion Energy employees choose a lump sum payment for their pension benefits, and what are the tax implications of this choice?
Answer:
Dominion Energy employees may opt for a lump sum payment of their pension benefits. This option subjects the lump sum to income taxes and potentially early withdrawal penalties if taken before age 59½. Transferring the lump sum into an IRA or another retirement plan can defer taxes.
10. Question:
How can employees at Dominion Energy contact HR or the Benefits Center for queries about their pension benefits and retirement planning?
Answer:
Dominion Energy employees can reach the Benefits Center by calling 877-434-6996, available Monday through Friday, from 8:00 a.m. to 5:00 p.m. ET. The center assists with retirement planning, beneficiary updates, and other pension-related inquiries, providing necessary support to employees.
11. Question:
How does the transition from the Questar Plan to the Dominion Energy Pension Plan affect the retirement benefits for employees of Dominion Questar Corporation, and what should they consider when evaluating their eligibility for both Part A and Part B benefits under the new structure?
Answer:
The transition from the Questar Plan to the Dominion Energy Pension Plan alters the retirement benefits for Dominion Questar Corporation employees by dividing their benefits into Part A (for credited service before January 1, 2018) and Part B (for credited service after that date). Employees should review their eligibility for both parts based on their credited service and final average earnings, and thoroughly read the Dominion Energy Pension Plan SPD along with this supplement to understand their benefits fully.
12. Question:
What impact do the various annuity options offered by Dominion Questar Corporation, such as the single-life annuity and the contingent annuitant option, have on retirement planning for single versus married retirees?
Answer:
Dominion Questar Corporation provides several annuity options, including single-life and contingent annuitant choices, which influence retirement planning. Single retirees benefit from the single-life annuity during their lifetime only, while married retirees may choose options that continue benefits for their spouses, ensuring continued income for their spouse. The specific reduction rates differ depending on the age gap between the retiree and their spouse.
13. Question:
What criteria must employees meet to be eligible for early retirement benefits under the Dominion Questar Corporation pension plan, and how do age and credited service influence these benefits?
Answer:
Employees need to meet specific criteria such as reaching age 55 and having ten years of credited service for Part A to be eligible for early retirement benefits under the Dominion Questar pension plan. Both age and credited service affect the benefit calculation, with reductions for early retirement prior to age 62 for Part A and before age 60 for Part B.
14. Question:
What steps should employees of Dominion Questar Corporation follow when applying for retirement benefits, and what documentation is necessary to facilitate a smooth transition to retirement?
Answer:
Employees of Dominion Questar Corporation should initiate their retirement benefits application by contacting Dominion’s Human Resources department. Necessary documentation includes employment history, pension eligibility, and choice of annuity options. HR will provide comprehensive guidance on transitioning from active employment to retirement.
15. Question:
What choices are available to employees of Dominion Questar Corporation regarding lump-sum distributions versus monthly annuities, and what are the considerations for choosing between these options in terms of enhancing retirement planning?
Answer:
Employees at Dominion Questar Corporation have the option to select between lump-sum distributions and monthly annuities. Opting for a lump sum provides immediate access to funds, potentially benefiting short-term needs, whereas monthly annuities offer sustained income over time. Employees should consider the long-term implications of each choice with respect to their retirement planning objectives.
16. Question:
How does Dominion Questar Corporation’s pension plan cater to married employees at retirement regarding survivor benefits, and what options are offered to ensure ongoing income for spouses after the retiree passes?
Answer:
For married employees, Dominion Questar Corporation’s pension plan includes several survivor benefit options, such as 50%, 75%, or 100% of the retiree's benefit continuing to the spouse. These choices reduce the retiree's monthly benefit but continue payments to the spouse after the retiree's passing, thus ensuring ongoing income.
17. Question:
How do the Questar Permanent Supplement and Questar Temporary Supplement contribute to enhancing an employee's overall pension benefit at Dominion Questar Corporation, and what criteria determine eligibility for these supplements?
Answer:
The Questar Permanent and Temporary Supplements are additional benefits enhancing the overall pension for eligible employees at Dominion Questar Corporation. The Permanent Supplement is calculated from the difference between an employee’s final average earnings and covered compensation, while the Temporary Supplement supports early retirees until age 62. Eligibility is based on years of service and retirement age.
18. Question:
What avenues are available for employees of Dominion Questar Corporation to gain a deeper understanding of their pension benefits, and how can they seek additional information or explanations from Human Resources regarding their retirement planning?
Answer:
Employees can seek deeper insights into their pension benefits by contacting Dominion Energy’s HR or benefits department. The company offers detailed resources like Summary Plan Descriptions and personalized assistance to help clarify various aspects of retirement planning.
19. Question:
In the case of an employee's unexpected death before retirement, what benefits are provided to the surviving spouse under the Dominion Questar Corporation pension plan, and how are these benefits calculated?
Answer:
Should an employee of Dominion Questar Corporation pass away before retirement, their spouse becomes eligible for survivor benefits under the pension plan. These benefits are calculated at 50% of the accrued benefit and may commence at age 55 or later, with adjustments for early commencement.
20. Question:
How can employees of Dominion Questar Corporation reach out to the HR department or other resources for further assistance regarding the Pension Plan, particularly for queries about eligibility, benefit calculations, and the application process?
Answer:
Employees of Dominion Questar Corporation can contact the HR department or plan administrator for detailed assistance with the Pension Plan. This includes help with understanding benefit eligibility, performing calculations, and navigating the application process. HR offers comprehensive guidance through each step of the pension management process.
21. Question:
How does retirement under the SCANA Corporation Retirement Plan affect long-term planning for employees?
Answer:
Retirement under the SCANA Corporation Retirement Plan significantly influences long-term planning by offering two main formulas: the Cash Balance Plan and the Final Average Pay Plan. Employees should consider the growth characteristics of the Cash Balance Plan, where accounts grow with monthly compensation and interest credits until December 31, 2023, and thereafter only through interest credits until distribution. The Final Average Pay Plan is calculated based on the highest three years of salary and service length, providing a consistent benefit that is essential for long-term planning. Understanding these features assists employees in organizing their retirement income and coordinating other investments.
22. Question:
What are the criteria for participating in the SCANA Corporation Retirement Plan, and how do these criteria influence retirement planning for employees?
Answer:
Eligibility for the SCANA Corporation Retirement Plan is confined to employees hired or rehired before January 1, 2014. The merger with Dominion Energy changed eligibility by integrating SCANA employees into Dominion's subsidiaries, making them eligible for Dominion's plans but stopping new benefits accrual under SCANA's plan as of December 31, 2023. Potential new hires post-merger are not eligible for SCANA's plans but may have options under Dominion Energy’s plans, altering their retirement planning landscape.
23. Question:
How is the normal retirement benefit calculated under the SCANA Corporation Retirement Plan, and what factors influence this calculation?
Answer:
The normal retirement benefit under the SCANA plan is determined using two methods: the Cash Balance formula accrues benefits based on compensation and interest credits, stopping further accruals after 2023 but continuing to earn interest until distribution. The Final Average Pay formula takes into account an employee’s average salary over the highest three years, their service length, and other compensatory factors up to the freeze date. Employees should comprehend these mechanisms to strategize their potential benefits effectively.
24. Question:
What specific roles do Vesting Service and Benefit Service play in determining benefits under the SCANA Corporation Retirement Plan?
Answer:
Vesting and Benefit Service play critical roles in determining retirement benefits under SCANA’s plan. Employees are vested after three years, securing a non-forfeitable right to benefits. Benefit Service influences the calculation of final benefits, especially under the Final Average Pay Plan, where it directly contributes to the retirement income formula. Employees need to understand these terms to manage their retirement funds accurately.
25. Question:
If an employee of SCANA Corporation is contemplating early retirement, what conditions and implications should they consider regarding their retirement benefits?
Answer:
Considering early retirement under SCANA’s plan requires understanding conditions such as age and service requirements, and the effects these have on benefit calculations and distributions. Early retirement may reduce the benefit amount and its duration, making it essential for employees to consider how early retirement fits with their long-term needs and retirement goals.
26. Question:
How does the SCANA Corporation Retirement Plan ensure that retirees' benefits are disbursed correctly and promptly?
Answer:
SCANA’s plan manages timely and correct benefit disbursements through detailed administrative processes managed by the Dominion Energy Benefit Center. Employees should be familiar with these processes, including how to initiate benefit claims and the choices available (lump sum vs. annuity) to handle their retirement disbursements effectively.
27. Question:
As SCANA Corporation transitions to a frozen pension plan post-2023, what are the consequences for current employees and their long-term retirement benefits?
Answer:
The freezing of the SCANA Retirement Plan in 2023 means there are no new benefits accruals but continued interest credits on existing balances in the Cash Balance Plan. Employees should assess how this freeze affects their overall retirement benefits and consider seeking additional investment avenues to supplement the halt in accruals.
28. Question:
What strategies should employees of SCANA Corporation consider to enhance their retirement benefits, especially within the Cash Balance Plan?
Answer:
Strategies for enhancing benefits under the Cash Balance Plan involve understanding how contributions and interest credits accumulate and planning the timing of retirement to optimize the benefit amount. Employees might also look into additional retirement savings options to ensure financial well-being.
29. Question:
What role does the designation of a beneficiary play within the SCANA Corporation Retirement Plan, and why is it important for employees to review this designation regularly?
Answer:
Designating a beneficiary is vital in the SCANA plan to direct where benefits will be allocated in the event of the employee’s death. Regular reviews and updates to this designation are crucial, particularly after significant life events such as marriage or the birth of a child, to ensure benefits are allocated according to the employee’s intentions.
30. Question:
For employees seeking further clarity about their benefits under the SCANA Corporation Retirement Plan, how can they obtain assistance?
Answer:
Employees seeking clarity on their benefits under the SCANA Retirement Plan can reach out to the Dominion Energy Benefit Center. This center provides detailed plan information and assistance with benefit calculations, helping employees make informed decisions about their retirement options.