MCR: How do I treat employees with more than one contract/role?

Modified on Tue, 10 Dec at 3:05 PM

An employee can have than one contract/role.

More than one contract/role

What are the types of contractual arrangements?

Type 1 contractual arrangements

For those members who have a Type 1 arrangement, all their jobs are assessed individually and their member contribution tier is calculated based on earnings for each post separately. Therefore, you need to use a unique contract identifier before the "/". e.g. C1/R1, C2/ R1 etc or C1/R1, C2/ R2 etc.

The number (Contract) before the ‘/’ MUST be different for each post role.
The number (Role) after the ‘/’ can be the same or different for each post role.

Type 2 contractual arrangements

For those members who have a Type 2 arrangement, all their jobs are assessed as one and an overall member contribution tier is calculated based on the combined earnings for all posts. Therefore you need to use the same contract identifier before the"/" and use different role identifiers after the "/". e.g. C1/R1, C1/R2, C1/R3.

The number (Contract) before the ‘/’ MUST be the same for each post role.
The number (Role) after the ‘/’ MUST be different for each post role.

How are multiple contracts/roles treated separately for pension?

Single employment = Multiple Contracts + single role/multiple roles.
The multiple contracts can be treated separately with the same role or can be treated separately with different roles. Each employee’s contract (post) has its own annual salary rate. The employee is paid a certain amount of earnings under each post. (C1/R1, C2/R1 or C1/R1, C2/R2 etc.) An employee has an existing part-time contract with one post role and has acquired an additional part-time contract with the same post role.

How is this reported?

Each post is reported as a separate line, with full time salary and associated earnings.

Does the pension contribution record need to be attached to the particular post?

The pension contribution records are associated with each post. Earnings under each post are assessed for contribution tiers separately.

How are multiple contracts treated as separate pension figures?

Each employee’s post has its own annual salary rate, and the employee is paid a certain amount of earnings under each post.

The pension contribution records are associated with each post. Earnings under each post is assessed for contribution tiers separately.

Important:

Each row must have a pensionable pay amount associated to it and the member's contribution deduction.

What are the different treatments for pensions?

How can I treat multiple posts as a Type 1 contractual arrangement?

Each post must be given a unique role identifier with a unique contract identifier before the slash e.g. C1/R1, C2/R1

A pension contribution record must be created for each post and connected with that individual post.

How can I treat multiple posts as a Type 2 contractual arrangement?

If all posts held by the employee are to be treated in a single Type 2 arrangement, then the unique role identifier on each post must use the same contract identifier before the slash e.g. C1/R1, C1/R2, C1/R3 etc.

A single pension contribution record can be created and not connected with any specific post. This will then cover earnings under all posts together as a Type 2 arrangement.

What if I have multiple Type 2 contractual arrangements?

The employee should have a post for each unique role. For each role, use the unique role identifier to group the roles within each contractual arrangement. For example, our employee has two Type 2 contractual arrangements. And within each contractual arrangement there are two distinct roles. So there are 4 roles altogether.

Three of the roles fall under a single Type 2 contractual arrangement. And one role forms its own separate contractual arrangement.
The unique role identifier on the 1st 3 roles should have the same contract ID before the slash e.g. C1/R1, C1/R2, C1/R3.
The 4th role, which forms its own Type 2 arrangement should have a different contract identifier before the slash. e.g. C2/R1.
You will need to create a pension contribution record for each post and connect individually to each of the posts.
The system will automatically determine the correct tier by grouping earnings under the 1st 3 roles together.

What are the contract situations for multiple employee in post records?

Employee in Post Records	Pension Contribution Records	Role Identifies	MCR Lines/Salary Treatment
Multiple contracts with single roles in a single Type 1 arrangement (treated separately for pension)	A pension contribution record needs to be attached to each employee in post record, and earnings under each post will be treated separately for pension contribution tier.	Example: C1/R1, C2/R1(1st part of identifier unique, second part identical)	Multiple lines (line per post). Annual salary attached to each post reported.
Multiple contracts in a single Type 2 arrangement (treated together)	Single contribution record (earnings are summed together to be treated for pension contribution tier) – no need to attach to post.	Example: C1/R1, C1/R2 (1st part of identifier identical across all employee post records, second part unique)	Multiple lines (line per post). Annual salary attached to the post reported.
Multiple contracts in a combination of arrangements (contracts grouped together or separately)	A pension contribution record needs to be attached to each employee in post record. The unique role identifiers will be used to determine which roles are grouped together for pension contribution tier.	Example for four posts: C1/R1, C1/R2 (1st part of identifier identical, second part unique) and then C2/R1, C2/R2	Multiple lines (line per post). Annual salary attached to the post reported.