Payroll is already quite complicated, but education payroll takes things to a whole new level. Multiple pay scales, multiple spine points across diverse role types, multiple pensions, the list goes on and 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 will save you valuable time and countless headaches.
If you employ scheme members and are responsible for administration, you’ve come to the right place.
What exactly is Teachers’ Pension MCR?
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.
The benefits of Teachers’ Pension MCR
Since the MCR replaced the MDC in April 2022, there have been many benefits for both your scheme members and your payroll teams:
- You’ll save a lot of time by filling out just one form instead of three separate ones.
- Your employees will get more accurate and reliable benefit statements, giving them better peace of mind about their pensions.
- 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.
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What data is required for Teachers’ Pension MCR?
You’ll need to provide service, salary and contribution data at a member level. Plus, a full contribution summary for all employees you’ve identified as eligible for the Teachers’ Pension Scheme.
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.
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 Teacher’s Pensions via the Employer Portal as a Comma Separated Value (.csv) file.
When to make your Teachers’ Pension MCR submission
You need to submit your MCR files by the 15th of each month. Please bear in mind that if there are warning errors that cause a delay, you’ll have until the 3rd of the following month to make your submission.
If the 15th happens to land on a weekend or bank holiday, just make sure to submit it by the last working day before then.
How to stay up to date with Teachers’ Pension MCR
There are a few ways you can keep up with all things MCR:
- Teachers’ Pension website
- Employer Bulletins
- MCR specific webinars
- Instructional videos
- Series of guides
If you have a specific query regarding your MCR, then you can contact the MCR Team.
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 data you need, making sure everything is up to date and ready to go.
It’s so easy that Cintra facilitates MCR submissions in six easy 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.
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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.
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