Intermountain Health Froze Your Pension. Here's What It Could Cost You.

If you're an Intermountain Health employee, you have recently learned your pension has been frozen.

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For many workers, the initial reaction may be “I'll deal with that later." But financial advisors who specialize in this type of situation, say that waiting, or simply accepting the default options your employer presents, can be one of the most expensive decisions a person makes.

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What "Frozen" Actually Means

When a pension is frozen, your company stops making contributions to your account. Whatever you've earned up to the freeze date is protected, and in most cases it will continue to grow with interest and/or investment returns. But you won't receive any additional pension contributions going forward, even if you continue working at Intermountain for many more years.

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For someone mid-career, the math can be sobering. The pension benefit you'll ultimately receive may represent a fraction of what you were on track to earn.

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"Most employees don't fully understand the impact until they sit down and do the hard math," says Tyson Thacker, CEO of B.O.S.S. Retirement Solutions, a firm that has helped more than 50,000 families navigate retirement decisions. "When you see the difference between what your pension was on track to pay, versus what it's now going to pay, the gap can be enormous."

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What Intermountain May Offer Instead

When companies freeze a pension, they almost always pair the announcement with enhancements to their 401(k) program. This may include a higher match, more contribution options, or an improved benefits package.

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These changes are real. But it's important to understand what they actually represent.

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"This is a fundamental shift from employer responsibility to employee responsibility," says Ryan Thacker, President of B.O.S.S. Retirement Solutions. "With a pension, the company absorbs 100% of the investment risk. You're guaranteed a monthly paycheck in retirement regardless of what happens in the market. But with a 401(k), that risk falls entirely on you."

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That's not necessarily bad news. But it does require a plan.

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You Likely Have More Options Than You've Been Told

Here's what many affected employees don't realize: when a pension is frozen — or when you eventually leave the company — you typically have several choices about what to do with your accumulated benefit. And those choices you make could carry significant financial consequences.

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Common options include…

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→ Leave the money in the pension and receive a guaranteed monthly income for life when you retire. Less flexibility, but predictability.

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→ Take a lump sum when you separate from Intermountain and roll it into an IRA where you control the investments. More flexibility, but more responsibility.

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→ Hybrid arrangements, depending on the specific plan design — partial lump sums or other combinations may be available.

"These are not small decisions," says Tyson Thacker. "They are often six-figure decisions. And each option carries significant tax consequences that most people never consider."

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The Ripple Effect

What makes pension decisions particularly complex is how far they reach. The choice you make could impact:

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✓ Your tax bracket now and in retirement
✓ Your investment strategy going forward
✓ Survivor benefits for a spouse
✓ When you can realistically retire
✓ Your Social Security claiming strategy
✓ Your Medicare premiums

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"This decision could shape your entire life savings for the next 20 or 30 years," says Ryan Thacker. "Getting it wrong — or simply not knowing all your options — can be incredibly expensive."

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Before You Make Any Decisions, Do This First

Intermountain Health will give you options. What they can’t give you is independent advice about which option is right for your situation.

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That's exactly what B.O.S.S. Retirement Solutions offers, at no cost to you.

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Their team is currently offering free pension reviews for Intermountain employees affected by this freeze. The review is a customized analysis that walks through every option available to you, including ones your employer may not have mentioned.

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There's no obligation, no sales pitch, and no fee — whether you become a client or not.

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These reviews are currently available for families who have saved at least $300,000 for retirement.

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Appointments fill quickly following major pension announcements. To schedule your free review, call (801) 682-4448 or click HERE.