Teachers Pensions - cash equivalent transfer value questions

[Getabloominmoveon]

Has anyone cashed in a final salary Teachers Pension? I've got a small TP from 8 years service, and have other pensions. A pensions specialist, not an adviser, suggested to me this weekend that I should consider cashing it in now that values are still high. I'm interested in hearing pros and cons, given that this won't be my only/main retirement income, and that I'm now 4 years away from my retirement date of 60.

Generally not good advice- have you contacted teachers pension for an estimate?

If you go back into teachers pension those 8 years would count at your final salary (or highest of last 10 years)

So you were in teachers- 20 years ago and had a salary of £20k- so 8 years not worth much but something. But you go back in now- say at £35k and those 8 years are counted at £35k etc

Have you also looked at what happened when you die? and any lump sum?

You almost certainly won't be able to 'cash it in' - in 2016 the unfunded public sector pension schemes banned transfers to schemes that allow taking flexible benefits. This basically means that you can only transfer to another final salary/defined benefit scheme. But do check this with Teachers' Pensions.

If you're over 55 you may be able to receive payment of your benefits from Teachers' Pensions but these are likely to be reduced for payment before your normal retirement age. Again, you would need to ask TP if you can take benefits now.