Intermountain Health Freezes Employee Pensions

Largest Utah employer cites "ongoing financial pressures" in shift to 401(k) plans

Jan. 27, 2026 at 8:07pm

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Intermountain Health, Utah's largest employer with about 68,000 caregivers, announced it will freeze pension benefits for roughly 23,000 workers at the end of 2026 and transition them to a 401(k)-based retirement program. Many employees expressed shock and dismay at the sudden change, describing feelings of "devastation" and concerns about the long-term financial impact.

Why it matters

Intermountain Health is known for providing competitive benefits, including a pension plan, which has helped the healthcare system attract and retain talent. The shift away from pensions to 401(k)s could make it more challenging for Intermountain to maintain its workforce, especially among long-serving employees who were counting on the pension income in retirement.

The details

In an email to employees, Intermountain Health cited "ongoing financial pressures" including lower government payments, inflation, and market volatility as the reasons for freezing the pension plan. The company noted that about 97% of healthcare organizations have already moved away from traditional pensions to 401(k)-style plans. Employees described feeling "blindsided" by the change, with one surgeon estimating the freeze could cost him over $1 million in expected retirement income.

  • Intermountain Health employees received the email about the pension freeze on a Tuesday morning in January 2026.
  • The pension plan will be frozen at the end of 2026, with no new benefits earned after that point.

The players

Intermountain Health

Utah's largest employer, with about 68,000 caregivers, that is freezing its pension plan and transitioning to a 401(k)-based retirement program.

Anonymous Surgeon

An Intermountain Health employee who spoke on the condition of anonymity and estimates the pension freeze could cost him over $1 million in expected retirement income.

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What they’re saying

“You feel like you've just lost a million dollars. Like, how would you feel if you lost a million dollars? You'd feel devastated. And that's how everybody was feeling.”

— Anonymous Surgeon (KSL NewsRadio)

“The long term effects mean instead of retiring at my desired goal with my wife, I had to come home and tell her, 'Sorry, honey, I got an email today. The pension froze and that means I'm likely going to have to work for several more years. Our retirement plan is now dramatically altered'.”

— Anonymous Surgeon (KSL NewsRadio)

What’s next

Intermountain Health is planning upcoming webinars to provide more information to employees about the pension freeze and transition to 401(k) plans.

The takeaway

This shift away from pensions to 401(k)s at Intermountain Health, a major employer known for its competitive benefits, highlights the broader trend in the healthcare industry and the potential challenges it poses for retaining experienced caregivers who were counting on pension income in retirement.