Dominion Power 2007 Annual Report Download - page 99

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The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid:
Pension
Benefits
Other
Postretirement
Benefits
(millions)
2008 $ 194 $ 83
2009 177 90
2010 191 97
2011 196 104
2012 212 110
2013-2017 1,341 637
The above benefit payments for other postretirement benefit plans are expected to be offset by Medicare Part D subsidies of approx-
imately $5 million annually for 2008 and 2009, approximately $6 million annually for the period 2010 through 2012 and approximately
$39 million during the period 2013 through 2017.
Our overall objective for investing our pension and other postretirement plan assets is to achieve the best possible 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 allocation for our pension funds is 34% U.S. equity securities, 12% non-U.S. equity
securities, 22% debt securities, 7% real estate and 25% other, such as private equity investments. Financial derivatives may be used to
obtain or manage market exposures and to hedge assets and liabilities. The asset allocations for our pension plans and other postretirement
plans follow:
Pension Plans Other Postretirement Plans
As of December 31, 2007 2006 2007 2006
Fair
Value
%of
Total
Fair
Value
%of
Total
Fair
Value
%of
Total
Fair
Value
%of
Total
(millions, except percentages)
Equity securities:
U.S. $1,767 35% $1,491 31% $384 40% $369 41%
International 757 15 751 16 107 11 106 11
Debt securities 1,228 24 1,356 28 347 36 335 37
Real estate 406 8 376 8 31 3 25 3
Other 940 18 819 17 91 10 74 8
Total $5,098 100% $4,793 100% $960 100% $909 100%
Dominion 2007 Annual Report 97