Teachers' Pension and Proportional TLR1 and TLR2 Payments

You can now create TLR1 and TLR2 payments that are based on the proportion, or factor, of the full-time equivalent TLR the employee is undertaking and calculate and report their annual full-time equivalent salary, part-time earnings, and actual pensionable pay in accordance with new guidance from Teachers Pension as of September 2025.

Proportional TLR1 and TLR2 payments are reported differently in annual full-time equivalent salary depending on the employee's contract type:

  • Full-time equivalent value of the TLR is reported for a part-time regular (PTR) employee. For example, a part-time employee is awarded 0.5 of a TLR1 that has an annual value of £12000, so the amount they are awarded is £6000. £12000 is included in their annual full-time equivalent salary. Their part-time earnings reflect the actual amount awarded.
  • Proportional (actual) value of the TLR for a full-time regular (FT) employee. For example, a full-time employee is awarded 0.5 of a TLR1 that has an annual value of £12000, so the amount they are awarded is £6000. £6000 is included in their annual full-time equivalent salary.

You can generate When Paid U lines for retroactive changes to proportional TLR1s and TLR2s in previous MCR periods, including adding or removing a TLR or changing the proportion awarded.

These updates ensure Teacher Learning Responsibility (TLR) 1 and 2 awards, conform with Department for Education and Teachers' Pension requirements and are accurately represented in MCR outputs. This will thus reduce reporting discrepancies and administrative reconciliation for pension and payroll teams. They also support correct retrospective adjustments, improving auditability and pension contributions accuracy.

Steps to enable and configure

For more information on the configuration of proportional (factored) TLR elements and the Annual Full-Time Factored Allowances rate definition, see: Public Sector Pensions: Teachers’ Pension Scheme (KB153874) and the following attachments:

  • Factored TLR1 and TLR2 September 2025 Setup v1.pdf
  • Factored TLR Earnings Formula.txt
  • Factored TLR Earnings Formula Worked Example.txt

Tips and considerations

There are no changes to the configuration or reporting of TLR1s and TLR2s that are based on a person's role (and therefore prorated according to their FTE). However, the School teachers’ pay and conditions document 2025 and guidance on school teachers’ pay and conditions document states that from September 2026, the value of all new and existing TLR1 and TLR2 payments will need to be determined by the proportion of the TLR the teacher is undertaking.

TLR3 setup also remains unchanged.

Key resources

For more information on setup and configurations, see: Public Sector Pensions: Teachers’ Pension Scheme (KB153874) on My Oracle Cloud Support