Your Four Pension Options as an Intermountain Health Caregiver Over 60

If you’re an Intermountain Health caregiver age 60 or older, the recent pension changes aren’t just informational — they’re actionable. 

You’re in a unique window where real decisions need to be made. And the good news? You have options. 

Let’s walk through the four primary paths available to you — and the bigger decisions that sit behind them. 

The Four Options: Lump Sum or Monthly Pension, Now or Later 

If you are 60 or older and still working at Intermountain Health, you can access your frozen pension benefit in one of four ways. 

At the highest level, you must decide: 

• Do I take the lump sum? 

• Or do I annuitize (take monthly payments)? 

And then within each of those, you must decide: 

• Do I take it now (at 60)? 

• Or do I wait and let it grow until 65? 

Let’s break those down. 

Option 1: Take the Lump Sum at Age 60 

Once you turn 60, you’re eligible to take your pension as a lump sum. 

This lump sum represents the present value of your lifetime pension benefit. You can: 

• Roll it directly into your 401(k) (even while still working) 

• Roll it into an IRA 

• Structure it within your broader retirement income plan 

This option gives you the most control. 

You control how the money is invested.
You control how and when it’s distributed.
You control how it integrates with the rest of your retirement assets. 

For caregivers who value flexibility and long-term planning, this can be a powerful option. 

Option 2: Wait and Take the Lump Sum at 65 

If you don’t need the pension immediately, you can let it grow. 

From age 60 to 65, the pension increases at 5% per year. That growth stops at 65, so there’s no additional incentive to wait beyond that age. For some caregivers, waiting allows: 

• A larger rollover amount 

• Better coordination with retirement timing 

• More efficient tax planning 

• A more conservative income base while keeping your 401(k) positioned for growth 

But waiting only makes sense if it fits into your broader retirement timeline. 

Option 3: Annuitize at Age 60 (Monthly Payments Now) 

Instead of taking control of the lump sum, you can choose to receive monthly payments for life. 

What’s unique about Intermountain’s structure is that you can start receiving pension income while still working. That means you could: 

• Continue earning your salary 

• Continue contributing to your 401(k) 

• And begin receiving pension income simultaneously

For some caregivers, this creates additional cash flow flexibility. However, once you annuitize, you’ve committed. You no longer control the lump sum. ​​If you don’t need the income yet, those payments could also increase your taxable income unnecessarily. 

Option 4: Wait and Annuitize at 65 

Just like the lump sum option, if you wait to annuitize, the monthly benefit increases 5% per year until age 65. After that, there is no additional increase, so it is important to make a decision before then. 

Waiting may result in a larger guaranteed monthly payment, but it also delays income and does not provide a legacy benefit if something happens to you early. 

This decision often comes down to longevity assumptions, retirement timing, and how much guaranteed income you truly need. 

The Three Bigger Decisions Behind the Options 

While these four paths seem straightforward, they’re tied to three larger retirement decisions. 

1. When Are You Retiring?

The pension freeze changes your projections. You may now have: 

• More going into your 401(k) because of the additional 2% employer contribution 

• A capped pension benefit that stops growing after 2026 

This means your retirement age may shift slightly earlier or later depending on how the numbers fall. Before choosing an option, rerun your projections. 

2. Control vs. Guarantees

At its core, the lump sum versus annuity decision is about this question: Do you want control, or do you want certainty? 

• The lump sum gives you control and flexibility. 

• The annuity provides a predictable income stream for life. 

Neither is inherently better. The right answer depends on: 

• Your health and longevity expectations 

• Your other income sources (Social Security, 401(k), spouse’s benefits) 

• Your comfort with investment oversight 

• Your legacy goals

3. How Does Everything Work Together?

Your pension decision doesn’t live in isolation. It affects: 

• Your Social Security claiming strategy 

• Your Medicare enrollment timing 

• Your tax planning 

• Your withdrawal sequencing from retirement accounts 

All of these decisions are interconnected. Changing one impacts the others. That’s why this isn’t simply a pension decision — it’s a retirement architecture decision. 

Why Now Is the Time to Evaluate 

There are pros and cons to every option. But the most important factor is this: 

Time is on your side – especially while you’re still working. You have income, flexibility and options. Waiting until retirement to evaluate these decisions reduces your flexibility significantly. 

Final Thoughts 

If you’re over 60 at Intermountain Health, you’re in a rare position. You can: 

• Take control of your pension. 

• Begin income early. 

• Or allow it to grow strategically. 

But the best choice isn’t determined by the pension alone. It’s determined by how the pension fits into a cohesive retirement income plan. 

If you’d like to walk through your four options and see how they integrate with your Social Security, Medicare, and overall income strategy, we’re happy to help. 

Peterson Wealth Advisors is a registered investment adviser. Information presented is for educational purposes only. Please consult a qualified financial advisor before implementing any strategy.