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Protecting Your Dominion Energy Retirement: Managing Long-Term Care Costs

“Dominion Energy employees who establish a dedicated health care reserve and explore flexible hybrid care solutions can help manage potential long-term care costs while addressing their overall retirement goals.”– Michael Corgiat, a representative of The Retirement Group, a division of Wealth Enhancement.

“By proactively allocating a targeted health care contingency fund and evaluating adaptable long-term care policy options, Dominion Energy employees can mitigate the financial shock of extended care expenses while aligning with their broader retirement strategy.” – Brent Wolf, a representative of The Retirement Group, a division of Wealth Enhancement.

In this article we will discuss:

The financial impact of long-term care risk
Hybrid insurance solutions for long-term care (LTC) coverage
Strategies for building a dedicated health care contingency buffer

As Dominion Energy employees approach retirement, many will face unexpected health challenges with age. Long-term care (LTC) costs can be extremely high for a small portion of retirees, and those exceptional cases can skew the average for everyone else. This insight—shared by Tyson Mavar, a financial advisor with Wealth Enhancement—highlights an often-overlooked aspect of retirement planning: the possibility that extended care and prolonged medical expenses can resemble a financial balloon payment.

Assistance with tasks such as eating, dressing, and bathing that are not covered by traditional medical treatment is referred to as long-term care. Unlike acute medical services, LTC is typically not included under Medicare or most standard health insurance policies, placing the financial burden on individuals. Around 70% of people over age 65 will need some form of LTC, ¹ yet only about 20% will require services lasting more than two years. ¹ Roughly 4–9% are expected to face extreme LTC costs exceeding $250,000 ² —something Dominion Energy employees should account for.

Marital status also affects long-term care needs: individuals 65 and older who are single have a 51% chance of requiring paid LTC services, while those who are married face a 43% chance. ³

These numbers underscore the potential scope and cost of LTC needs. While the most expensive cases are uncommon, they can heavily influence financial assumptions, creating undue anxiety for those trying to prepare thoughtfully. Mavar’s key guidance is to “prepare, not panic,” advocating for balanced planning that manages costs without overcommitting resources for Dominion Energy employees.

A core part of that approach is using cautious, reasoned assumptions when estimating future care expenses. Instead of preparing for worst-case scenarios, individuals might start with a baseline such as one year of full-time care at current local prices, then adjust only if there are clear indicators—like a family history of chronic illness—that prolonged care is more likely.

Mavar also encourages exploring hybrid insurance solutions rather than only traditional LTC insurance, which may come with rising premiums and limited flexibility. Hybrid plans—such as annuities with LTC features or life insurance policies—can offer care benefits if needed, or a legacy component if unused, potentially offering Dominion Energy retirees a more adaptable approach.

Another helpful method is to allocate a separate portion of one’s assets specifically for future medical and care-related expenses. Creating a distinct “health care buffer” within the broader retirement plan can help retirees address those costs separately from other retirement needs. Dominion Energy employees may want to consider liquid, lower-risk investments—like high-yield savings accounts or short-term government bonds—for this segment, allowing easier access to funds while limiting exposure to significant market fluctuations.

Mavar also cautions against letting rare but costly events dominate overall retirement preparation. “You don’t want to underfund the rest of your retirement and dedicate too much for something that may never occur,” he notes—practical guidance to help Dominion Energy workers build adaptable, long-term spending strategies.

Ultimately, it’s wise to treat long-term care as both a health-related challenge and a factor that can influence estate and retirement outcomes. By estimating conservatively, examining hybrid policy options, and establishing a separate fund for care-related needs, Dominion Energy employees can construct resilient retirement strategies that take LTC into account while still addressing their overall financial objectives.

Sources:

1. Administration for Community Living, Department of Health & Human Services. ' How Much Care Will YOu Need? ' 18 Feb. 2020.

2. Simply Insurance. ' How Many People Need Long Term Care in America? ' 12 June 2025.

3. Morningstar. ' How Likely Are You to Need Long-Term Care? ' by Christine Benz. 12 Jul. 2024.

Things I suggest deleting:

Dominion Energy retirees are encouraged to dedicate a portion of their assets to health care expenses in a flexible and targeted way, research hybrid LTC policies, and use reasonable estimates for care-related costs as they approach retirement.

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Keywords: healthcare contingency, hybrid LTC insurance, retirement income options, long-term care planning

Planning for long-term care is similar to installing a backup generator for your home: when the power goes out, those who live alone face added challenges. Similarly, individuals over age 65 who are unmarried have a 51% chance of needing paid long-term care, compared to 43% for their married counterparts.

Just as a generator provides continuity during occasional outages, a carefully constructed LTC plan helps manage costly care needs while maintaining flexibility for other goals.

1. Genworth Financial, Inc., and CareScout. Cost of Care Survey 2024 . Genworth Financial, 4 Mar. 2025, pp. 1–2.

2. Cavanaugh, Lynn. “2024 Retiree Health Care Cost Estimate Is $165,000.” Fidelity Investments , 15 Aug. 2024, p. 1.

3. Office of the Assistant Secretary for Planning and Evaluation (ASPE). “What Is the Lifetime Risk of Needing and Receiving Long-Term Services & Supports?” U.S. Department of Health & Human Services , Dec. 2018, pp. 3–4.

4. American Association for Long-Term Care Insurance. “Long-Term Care Need Data for Men and Women.” AALTCI , July 2024, sec. “Married Couples Have Less Long-Term Care Need.”

5. Carroll, John. “Five Reasons to Discuss Long-Term Care Insurance Options with Your Clients.” LIMRA & LOMA , Dec. 2023, sec. “Life Combination Products.”

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? Employees should understand how their age, final average earnings, and credited service impact their monthly retirement benefits. Additionally, what changes might be relevant for those who have transitioned to a different retirement plan under Dominion Energy since 2021?

Evaluating Retirement Benefits: Employees hired before July 1, 2021, should consider factors like age, final average earnings, and credited service when evaluating 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 who have transitioned to a Cash Balance Pension Plan after 2021, the benefits are calculated differently, based on employer contributions to the employee's Cash Balance Account.

How does the Special Retirement Account feature within the Dominion Energy Pension Plan complement the traditional pension benefits for employees hired before 2008? Employees need clarity on how this account accumulates funds, the impact of contributions and interest credited according to IRS guidelines, and how it influences overall retirement income during their retirement years.

Special Retirement Account (SRA) Benefits: The Special Retirement Account (SRA) is an additional benefit for employees hired before 2008. This account is credited with 2% of an employee's pay each month and accumulates interest according to IRS guidelines. The SRA can be taken as a lump sum or an annuity, providing extra retirement income. Employees can choose to receive it alongside their traditional pension, enhancing their overall retirement benefit.

For employees considering early retirement options under the Dominion Energy Pension Plan, what are the potential financial implications? Specifically, how are benefits calculated for those who retire before age 65, and what penalties or reductions in monthly benefits must they be aware of regarding their overall retirement strategy?

Early Retirement Financial Implications: For employees considering early retirement, benefits under the Dominion Energy Pension Plan are reduced if taken before age 65. Specifically, the reduction is 0.25% per month for retirement between ages 58 and 60 and 0.50% per month for ages 55 to 58. This results in up to a 24% reduction in benefits if an employee retires at age 55, influencing their overall retirement strategy.

What are the steps Dominion Energy employees must undertake to ensure their beneficiaries are properly designated within the pension plan? This includes understanding the implications for both married and unmarried employees regarding survivor benefits and how to ensure that their wishes are reflected in the beneficiary designations as per the plan's requirements.

Beneficiary Designations: Dominion Energy employees should ensure their beneficiary designations reflect their wishes. For married employees, the spouse is automatically the beneficiary unless a different person is designated with spousal consent. Unmarried employees can choose any beneficiary, ensuring survivor benefits align with their personal circumstances.

In the event of a disability, how does the Dominion Energy Pension Plan provide support to its employees? Employees should understand the eligibility criteria for continued benefits, how credited service is affected, and the options available under both the Traditional Pension and Cash Balance formulas during periods of long-term disability.

Disability Benefits: Employees who qualify for long-term disability under the Dominion Energy Pension Plan continue to accrue credited service until age 65. Those under the Traditional Pension formula maintain eligibility for a pension based on their final average earnings and credited service, ensuring continued support during periods of disability.

How have the vesting requirements under the Dominion Energy Pension Plan evolved, and what does it mean for employees hired before and after July 1, 2021? Understanding these changes is essential for employees to assess their benefits and rights in relation to their service with the company, particularly if they leave before reaching the normal retirement age.

Vesting Requirements: Vesting for the Dominion Energy Pension Plan requires three years of service. For employees hired before July 1, 2021, vesting ensures non-forfeitable rights to pension benefits, regardless of whether they reach normal retirement age. Employees hired after July 1, 2021, are not eligible for the pension plan but may participate in alternative retirement benefits.

How can Dominion Energy employees effectively plan for retirement considering Social Security benefits? It is important for employees to integrate their expected Social Security benefits with their Dominion Energy pension projections, and to understand how each component contributes to their overall retirement income.

Social Security and Pension Planning: Employees should integrate their Social Security benefits with their Dominion Energy pension to ensure a comprehensive retirement income strategy. Using estimated Social Security benefits, employees can calculate how both sources will contribute to their financial stability in retirement.

What resources are available to Dominion Energy employees for estimating their pension benefits and planning their retirement? Employees should be informed about tools and websites like the Your Benefits Resource website, which provides insights into their pension information, including the ability to run benefit projections or request retirement estimates.

Retirement Planning Resources: Dominion Energy provides tools like the "Your Benefits Resource" website, which allows employees to view pension information, run benefit projections, and request retirement estimates. This helps employees plan effectively by estimating future benefits and understanding their retirement options.

Under what circumstances can Dominion Energy employees elect for a lump sum payment of their pension benefits, and what are the tax implications associated with such a decision? Employees need a thorough understanding of the consequences of taking lump sum distributions versus annuity payments, particularly regarding penalties and tax treatments in accordance with IRS regulations.

Lump Sum Payments and Tax Implications: Dominion Energy employees can elect to receive a lump sum payment of their pension benefits. However, lump sum distributions are subject to income taxes and may incur early withdrawal penalties if taken before age 59½. Rolling over the lump sum into an IRA or another retirement plan can defer taxes and avoid penalties.

How can employees at Dominion Energy get in touch with HR or the Benefits Center to clarify any questions regarding their pension benefits and retirement planning? It's crucial for employees to know the best methods to contact the Dominion Energy Benefit Center and the availability of service representatives to discuss their concerns or make necessary changes to their benefits.

Contacting HR and Benefits Center: Dominion Energy employees can reach the Benefits Center by calling 877-434-6996, Monday through Friday, from 8:00 a.m. to 5:00 p.m. ET. The Benefits Center provides assistance with retirement planning, beneficiary updates, and other pension-related inquiries, ensuring employees have access to support when needed(Dominion Energy_July 20…).

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For more information you can reach the plan administrator for Dominion Energy at 120 Tredegar St Richmond, VA 23219; or by calling them at (804) 819-2000.