Intermountain Health Froze Your Pension—Here's Exactly What to Do Next

Headlines say "pensions are gone," but the real story is more complicated—and way more actionable. In this episode, we break down Intermountain Health's pension freeze in plain English, translate pension credits into today's dollars, and show exactly who's likely to benefit or be hurt by the shift to a 401(k). Along the way, we get honest about interest rates, lump sums, and why a monthly check that looks "safe" can sometimes be the less flexible choice.

We start by demystifying defined benefit, cash balance, and defined contribution plans so you can see the trade-offs clearly: pensions promise outcomes and hide investment risk inside the company; 401(k)s promise contributions and hand the risk—and the opportunity—back to you. Younger employees may win when 2 percent employer contributions compound at equity-like rates over decades. Late-career employees, especially within five years of retirement, can feel a real hit as near-term pension credits give way to smaller 401(k) funding.

We run through the math on discount rates, why lump sums rise when rates fall, and how to think about optionality before rolling over into annuities. We also get into the "why now" behind the freeze: rising volatility, bond headwinds, and the funding spiral that turns missed return targets into higher borrowing costs.

That context matters, because it points to what you can control. We outline a practical playbook: build a cash flow plan across Social Security and healthcare before Medicare, upgrade tax location across Roth, tax-deferred, and taxable accounts, and rethink portfolio risk so you avoid catastrophic drawdowns without giving up long-term growth. If you're in the Intermountain 401(k), don't miss the Schwab PCRA option—it can expand your investment menu and enable better asset location and risk controls.

KEY TOPICS:
What defined benefit, cash balance, and 401(k) each promise
Why a freeze isn't a termination of benefits
Pension credits and discount-rate math explained
Who wins and who loses in the shift
Lump sum vs monthly check and interest rate sensitivity
Company solvency pressures and funding spirals
Cash flow planning for Social Security and healthcare
Tax location across account types
Schwab PCRA to expand 401(k) choices

This change isn't the end of your retirement plan. It's a call to tighten it.

Find Du Charme Wealth Management here:
https://ducharmewealth.com

Phone: 
(435) 288-3396

Find Aaron Best here:
https://bestwealthadvisory.com/

DISCLAIMER:
Information presented on this program is believed to be factual and up-to-date, but we do not guarantee its accuracy, and it should not be regarded as a complete analysis of the subjects discussed. Discussions and answers to questions do not involve the rendering of personalized investment advice, but are limited to the dissemination of general information. A professional advisor should be consulted before implementing any of the options presented. Encompass More Asset Management LLC is a registered investment adviser with the U.S. Securities and Exchange Commission (SEC) and only transacts business in states where it is properly registered, or is excluded or exempted from registration requirements.

[00:00:00] Intro and Welcome
[00:05:04] From DB To Cash Balance
[00:10:18] The New 2% Contribution
[00:15:02] Young Workers: Why This Can Help
[00:20:44] Lump Sum Math And Rates
[00:27:16] How Underfunding Becomes A Spiral
[00:34:10] Rising Volatility And Low Bond Returns
[00:41:16] Healthcare And Early Retirement
[00:47:08] Portfolio Management And Flexibility
[00:50:14] Using Personal Advantages Wisely
[00:57:07] Practical Next Steps And Wrap