I paid into the UK Teachers Pension scheme for 8 years before moving overseas to teach 15 years ago.
I can draw a small pension at 60.
An advisor has informed me that I can 'withdraw' the pension and invest it elsewhere (but Í will not be able to access it until I am 55)
Having done some research I cannot find any websites to support this.
The Teachers Pension website states that contributions can be withdrawn if you have less than 2 years of contributions.
I also believe it is possible to start receiving the pension at 55 but I would get much less than at 60.
Does anyone know if it is possible to 'withdraw' the pension?
Even if it is, perhaps having a guarenteed index linked pension at 60 is worth hanging onto (it isn't worth much but is a good safety net)
Many thanks
John Roycroft
Bahrain

I believe that in cases where you can "withdraw" your pension contributions ie get them paid back you have to pay tax on them. I also believe that there are virtually no circustances (apart from if your employer is likely to go bust and you have a large pension) where taking money out of a final salary scheme is worth doing.
I have a personal example of this from my first job in 1972, I left after a year and elected to have my final salary contributions back (about £100 at the time but about £1050 in today's money) had I left the pension alone I would now be receiving about £270/year. By withdrawing my contributions I also lost my employer's contribution.

It's my understanding that the TPS is unfunded following the deal which the cash strapped labour government did with the TP trustees shortly after WW2.
So if teachers are permitted to withdraw pension capital for investment elsewhere, does that necessitate HMG borrowing capital at taxpayers' expense in order to enable that facility?
Sounds like lunacy and should be stopped immediately!

John,

As a teacher who is planning my retirement in phases (moving to part-time for 2 years and then possibly retiring at 55 - if funds permit!), one other benefit with the TPS is the lump sum you receive whenever you retire. This equates to 3 times whatever your annual pension is (tax free).

If you retire early your pension will be an actuarially reduced one and the TPS website (even without sign on details, password, etc...)has a 'resources' area located on the top "tabs" section with access to various pension calculators which are very helpful.

Good luck and, in my opinion, stick with the TPS.

Dear Philmo

I have worked in both private (20 years) and public sector (coming up to 10 years) so I can reply to your post with a "foot in both camps". You seem to be quite emotive on this topic and have a misunderstanding that "these people" (public sector) are somehow "short changing UK plc.". I would advise you do some research before firing off with "all guns blazing!". The following info. may be of some help.

Some teachers, who were employed a few years ago are on 1/80th pensions and the contract with our employers is quite fair and equitable. Some of us pay in around 8% of our salary into a pensions pot which is topped up by our employers (common practice in the private sector in company Group Pension Schemes). In the private sector many people also have Personal Pensions to enhance their pensions investments which can be enhanced by their companies offering "salary sacrifice" schemes which help in reducing NI contributions of the employer. The fact that certain parts of salary or bonuses can be paid "gross" into a Private Pension is also a great benefit. I have used this option very effectively for my own pensions planning when I was in the private sector.

For teachers the goverment have a legal responsibility each year to check that the TPS (teachers pension scheme) is still able to match its current and future liabilities with its assets i.e. that it is fully affordable. At the last review (3 years ago) it was affordable and yet the government have refused to carry out this valuation for the last two years, hence the recent issue with the strikes etc. This whole issue of "affordability" was raised 3 years ago which led to teachers agreeing to pay more into their pensions and to change the scheme for new entrants to make it affordable. Maybe the Govt. is not undertaking its legal obligations because it won't like what it will find - you never know, the TPS might still be affordable and then where will that leave the Government? With "egg on its face" because it is insistent that the TPS is NOT affordable. Clearly, and rightly, UK Plc needs to find extra money from somewhere. Instead of just raising tax from ALL of us earning over the new personal allowance, it is trying to take money through stealth. I bet you would have a few choice words to say if your employer made fundamental changes to your terms and conditions without discussions or negotiations.

Anyone in the private sector can take 25% tax-free cash from their private scheme when they are 55 and start effective "drawdowns" from their remaining fund if they choose a SIPP. So I don't see why you have a problem with public sector workers effectively doing the same at 55 or anytime before their official retirement. Based on the actuarially reduced calculations and the fact that I am on an 1/80th scheme means that when I am 55 and want to retire I will receive 9.3% of my salary as a pension. I don't see your logic of how "I am being paid twice out of the public pocket". I have a fair contract of employment and if I choose to retire early I have to appreciate that I will only receive a small fraction of what I would receive had I stayed on well into my 60s. I hope that the above information helps with any misunderstandings you may have.