The compensation in lieu of notice (CILON) calculator will ask you for the amount of salary, allowances and bonus to which the individual would have been entitled to had they remained in service during the notice period, and will calculate the loss of pension for the same period giving a total of CILON to be paid through the payroll. National insurance and tax should be deducted in the normal way.
Employers should refer to the Employer Pension Guide, Section 6 for further guidance on Civil Service Compensation Scheme (CSCS).
The calculator you should use for a particular individual depends on which scheme they were an active member of on their last day of service - even if they would have moved to alpha during their notice period. For example, a member of the PCSPS who has Tapered Protection and whose tapered alpha enrolment date was 1 June 2015 left service on 1 May 2015 and was due CILON for 3 months’ notice, would have their CILON calculated using the new PCSPS CILON calculator, notwithstanding the fact that they would have transferred into alpha if they had actually worked their notice period.
If the notice period goes over the scheme year end (31 March) you should run the calculator separately for the two periods using the appropriate salary and contribution rate for each period.