1. Administering Teachers' Pension Scheme for the United Kingdom
  2. Introduction to Teacher's Pension Scheme

Introduction to Teacher's Pension Scheme

The Teachers’ Pension Scheme (TPS) is a statutory occupational pension scheme for all employees in a predominantly teaching role in England and Wales.

Teachers’ pension data is reported using the MCR (Monthly Contributions Reconciliation) process. For Annual Allowance purposes, HMRC requires that service for April be split with one line covering 01 April to 05 April, and the next covering 06 April to 30 April.

The Teachers’ Pension Scheme comprises these qualifying schemes and the additional optional contribution types to which employees can contribute:

  • Main Career Average Revalued Earnings (CARE) scheme
  • Final Salary Scheme
  • Additional Pension Contributions
  • AAB Buy Out
  • Teachers Additional Voluntary Contributions (TAVC)
  • Faster Accrual
  • Past Added Years (PAY)
  • Current Added Years*
  • Family Benefit Contributions
  • Former Higher Salary Contributions (TR22 Election)
  • Preston Part-Time Buy-Back Contributions
  • Elected Further Employment (EFE)*

* EFE and Current Added Years don’t need to be separately identified for reporting purposes as they do not appear to be included in the Monthly Contributions Reconciliation (MCR); the user can therefore create them using the global template.

Use the pre-statutory deductions element template to create the pension scheme, additional contribution types, and related objects to:

  • Enrol employees into the main CARE scheme.
  • Maintain a balance for previous Final Salary scheme membership (for example, where it is the contribution basis for specific additional contribution types) and for calculating final salaries for employees approaching retirement.
  • Select the additional contributions employees contribute towards and the amount they pay.
  • Calculate your TPS contributions in accordance with the rules for each scheme or contribution type.
  • Automatically recalculate contributions for employees on Assumed pay absences.

Terminology Notes

Assumed Pensionable Pay is the term used in Oracle HCM for Notional Pensionable Pay.

References in this document to “supply teachers” mean teachers who are on an irregular, part-time contract (mapped to contract type PTIC). This criteria includes supply teachers but is not limited to them.

Sample Formulas

If you’re creating your TPS qualifying pension scheme element in release 23C, you don’t need to make the pension calculator and pension distributor formula changes described in this document. They are delivered automatically in the element template. If you created your TPS qualifying pension scheme element before release 23C, you must edit your pension calculator and pension distributor formulas to reflect these changes.

Sample 23C pension calculator and pension distributor formulas are attached to this document as text files. You can use them to compare and validate your updated formulas. Replace the sample element name used in our formulas (TPS_DUMMY_SCHEME) with your own pension scheme element name to simplify the comparison.

Some of the formula changes described in this document were previously published in standalone documents. Those same formula changes are now included in this 23C version of the white paper:

  • Reduce Eligible Compensation to Exclude Non-Pensionable Sickness Payment Amount – This information was in Doc ID 2912977.1 (Teachers' Pension Scheme- Sickness and Family-related Absences Setup: Support for Multiple Assignments and Pension Calculation for Non-pensionable Sickness Pay)
  • Multiple Assignments and Absences – This information was in Doc ID 2912977.1 (Teachers' Pension Scheme- Sickness and Family-related Absences Setup: Support for Multiple Assignments and Pension Calculation for Non-pensionable Sickness Pay)
  • Additional sample formula text files are attached and the required changes are described in this document:
    • SUPPLY_TEACHER_UNIT_BY_RATE_EARN.txt
    • TPS_BACK_DT_PAY_AWARD_EARN_RETRO_PROCESS_FORMULA.txt
    • TPS Multiple Assignment Non-Pensionable Abs Pay Formula Changes.txt

Further Information

You must use this product paper in conjunction with the other Oracle Fusion HRMS UK product papers:

  • Oracle Fusion HRMS (UK): HR Implementation and Functional Considerations (Doc ID 1531728.1)
  • Oracle Fusion HRMS (UK): Payroll Implementation and Functional Considerations (Doc ID 1921464.1)
  • Oracle Fusion HRMS (UK): Pensions Automatic Enrolment and Functional Considerations (Doc ID 2006584.1)
    • Usage of the pension automatic enrolment card is a prerequisite to MCR reporting.
  • Oracle Fusion HRMS (UK): Setting Up and Migrating UK Statutory Absences (Doc ID 2235239.1)
  • Human Capital Management Cloud HCM Data Loader: User Guide (Document 1664133.1)

To use Autocomplete Rules to validate or default information, see Configuring and Extending HCM Using Autocomplete Rules guide in the Oracle Help Center.