Payroll is already quite complicated but payroll for education takes things to a whole new level. Multiple pay scales, multiple spine points across diverse role types, multiple pensions, the list goes on. And let’s face it, the last thing you want on your plate is more admin work.
Although Teachers’ Pension MCR (Monthly Contributions Reconciliation) is mandatory, having a better understanding of what it is, and your legal requirements as an employer, will save you valuable time and countless headaches.
If you employ scheme members and are responsible for administration of education payroll, you’ve come to the right place.
What is Teachers’ Pension MCR—and Why Does it Matter?
Teachers’ Pension MCR is the method for schools and employers to submit teachers’ service, salary, and pension contribution information to Teachers’ Pensions.
MCR combines the information that was previously submitted separately through three different methods:
- Monthly Data Collection (MDC): for teachers’ service and salary details.
- Monthly Contributions Breakdown (MCB): for the breakdown of contributions.
- Enrolment and withdrawal notifications: for changes in employment status.
By combining everything into one monthly submission, the process is more streamlined and improves the accuracy of teachers’ pension records.
The benefits of Teachers’ Pension MCR
Since the MCR replaced the MDC in April 2022, there have been many benefits for both scheme members and payroll teams:
- You’ll save a lot of time by filling out just one form instead of three separate ones.
- Your employees will receive more accurate and reliable benefit statements, providing them with better peace of mind about their pensions and helping to maintain good relationships.
- Greater data validation means greater accuracy, so you can avoid queries and steer clear of expensive pension arrears.
- The End of Year Certificate (EOYC) process becomes much simpler and easier to manage as issues are detected—and corrected—earlier.
Get the latest insights and best practice guides, direct to your inbox.
What data is required for Teachers’ Pension MCR?
Every month, you’ll need to provide employee data at a member level.
So that means:
- Full-time and part-time employees on permanent, casual, or temporary contracts.
- Employees who are currently contributing to the pension scheme.
- Employees who are eligible but aren’t contributing, because they’ve opted out.
…basically, anyone who could or should be part of the scheme, whether they’re paying in or not.
The data you need to provide includes:
- Pay details, like pensionable and non-pensionable pay.
- Contributions summary for both employee and employer contributions.
- Service details including full-time/part-time status, start and end dates, and any breaks in service.
- Contract changes, including new starters, leavers, and changes to contracts (including multiple contracts).
It’s important that all contracts are included, even if an employee holds more than one position with you.
How to make your Teachers’ Pension MCR submission
You have two options when it comes to making your monthly MCR submission:
- You can fill out the Teachers’ Pension MCR template.
- You can export the data directly from your payroll system in the required format.
What is the MCR return format?
A MCR submission needs to be returned to Teachers’ Pensions via the Employer Portal as a Comma Separated Value (.csv) file.
MCR Template
The MCR template is available to download from the ‘Templates’ section of the Employer Portal.
This new template will work in a similar way to the Monthly Service Return template for MDC but with a few minor changes.
The MCR template consists of two sheets; one to enter the service, salary and contribution information at a member level and one to summarise the contribution values provided.
Data validation and errors
The validation of the data on sheet one of the MCR template performs member level reconciliation on the contribution information provided, as well as more robust validation on the member and service information you provide.
This validation may result in two types of errors being generated.
They are:
- Stop Errors: These occur when a mandatory field is missing, contains an invalid format, or doesn’t meet required naming or value rules. Highlighted in red, they must be corrected on the MCR template before saving or submitting, as the file cannot be saved or submitted with Stop errors present.
- Warning Errors: These occur when a value doesn’t match expectations but may not be fixable on the current MCR submission. Highlighted in orange, they often indicate incorrect contribution values or calculation factors. If present, all the member’s data on the MCR file needs to be reviewed—not just the highlighted cell—to identify the cause.
These Template User Instructions can provide more guidance.
When to make your Teachers’ Pension MCR submission
You need to submit your MCR files by the 15th of each month. If the 15th happens to land on a weekend or bank holiday, make sure to submit it by the last working day before then.
For example, any information regarding May’s service, salary, and contribution information, and associated payment needs to be submitted by 15th June.
You’ll be alerted to any errors generated from your submission via the Employer Portal and you’ll then have 3 payroll months to return your amended errors back to Teachers’ Pension.
Here’s a timeline of all the key dates you should bear in mind when administering the scheme:
| 15th of each month | MCR Submission and associated Contribution Payment are both due (if this date falls on a weekend, these will be then due on the last working day prior to this). |
| April | EOYC issued. |
| 31st May | Unaudited EOYC deadline for completion and return. |
| 30th June | EOYC to be made available to auditor. |
| 30th September | Audited EOYC to be completed and returned (non-LAs only). |
| 30th November | Audited EOYC to be completed and returned (LAs only). |
How to stay up to date with Teachers’ Pension MCR
There are a few ways you can keep up with all things MCR:
- MCR specific webinars
If you have a specific query regarding your MCR, then you can contact the MCR Team.
Employer responsibilities at a glance
Administering the Teachers’ Pension Scheme isn’t just about submitting data—it’s about staying compliant, keeping your records accurate, and ensuring your staff get the pension benefits they’re entitled to.
To help you stay on top of your obligations, we’ve summarised the key employer responsibilities into one handy table. From registering on the Employer Portal to managing monthly MCR submissions and end-of-year requirements, this overview covers everything you need to know to keep your payroll and pension processes running smoothly.
| Area | Responsibility | Key Actions |
|---|---|---|
| Employer Portal Access | Register for the Employer Portal | Complete the delegation form and email it to epregistrations@teacherspensions.co.uk. Use the Portal to manage member records, submit forms, receive notifications, and access guides. |
| Contact Setup | Provide and maintain key contacts | Ensure roles like Primary Contact, Salary/Service Contact, Contributions Contact, EOYC Contact, Finance Lead, Web Forms, and MCR Contact are always up to date. These contacts receive critical scheme communications. |
| MCR Submissions | Submit monthly service, salary, and contributions data | Submit a .csv file via the Employer Portal by the 15th of each month, including service, salary, and contribution data for all eligible staff (even opt-outs and casuals). Use either the MCR template or export from your payroll software. |
| MCR Payment | Submit contributions payment | Ensure payment matches your MCR file total exactly and use the correct reference number. Submit payments by the 15th or last working day before (if it falls on a weekend/bank holiday). |
| Error Management | Correct errors within 3 payroll months | Review Stop and Warning errors via the Portal and correct them within 3 payroll months. Missing member and NI number issues must also be investigated and resolved separately. |
| Automated MCR Alerts | Respond to automated reminders | Monitor the MCR Data Centre Mailbox for alerts like missing submission (4th, 16th, 18th), missing payments (16th, 18th), and outstanding errors (17th). Escalation occurs if issues aren’t resolved by the 19th. |
| New Starters & Leavers | Notify and inform employees | Notify Teachers’ Pensions via MCR. Share starter guides, opt-out info, and leaver factsheets depending on their MPO registration status. Use the Starters & Leavers resources on the TP website. |
| Auto & Contractual Enrolment | Enrol eligible staff into the Scheme | Populate ‘Enrolment Type’ in the MCR template to reflect enrolment type and date. Ensure Auto Enrolment duties are carried out for eligible jobholders. Members should complete opt-out forms via MPO. |
| Member Communications | Support member pension awareness | Inform members about their 12-month transfer window, faster accrual and buy out deadlines, and encourage MPO registration. Use TP’s ‘Advising Members’ section for resources. |
| Contribution Accuracy | Calculate and deduct pension contributions correctly | Use the calculation rules in the MCR User Guide to deduct the right contributions based on pensionable pay. Check for accuracy before each submission. |
| EOYC Completion | Submit EOYC annually | Complete and upload the EOYC via the Portal by 31 May. Provide it to your appointed auditor by 30 June. The signed, audited version must be returned by 30 Sept (non-LAs) or 30 Nov (LAs). |
| Application Forms | Process member retirement/opt-out forms | Use Employer Portal Task Manager or upload scanned paper forms. You may need to verify service history for retiring members. |
How HR and payroll software can help
Leading HR and payroll software providers, like Cintra, have added special modules to help with Teachers’ Pension MCR.
These tools make it easy to create accurate MCR submissions by handling all the information you need with automated workforce data collection, making sure everything is up to date and ready to go.
It’s so easy that Cintra facilitates MCR submissions in six simple steps:
- Step 1: Enable the MCR functionality
- Step 2: Set the start date for the MCR return process
- Step 3: Set up a payment method for the MCR return
- Step 4: Make sure schemes are set up correctly
- Step 5: Verify additional voluntary contributions
- Step 6: Establish and verify role identifiers
It really is that simple.
Education payroll software built for colleges, schools, academies, and MATs
If you want to see how Cintra can make sure that your teachers’ pension MCR submissions are accurate and on time, every time, book a personalised demo with one of our education payroll experts today.
PAYROLL SERVICES FOR SCHOOLS
Find out more about Cintra's HR and payroll services for the education sector, tailor-made for your schools unique needs.
Yes—MCR requires you to report all contracts and roles an employee holds with you, even if they’re part-time or temporary. Each contract should have its own line in the file.
Many payroll providers and software vendors can generate the MCR file on your behalf, but as the employer, you are still responsible for ensuring it’s submitted accurately and on time. Check with your provider what support they offer.
All eligible employees must be reported in your MCR submission, even if they’ve opted out or are not currently making contributions. Their status helps maintain accurate service records.
You can’t edit an existing file, but you can submit a corrected version for the affected members. Corrections should be made within three payroll months of the original submission.
