This guidance is addressed to Cabinet Office as scheme manager of the Civil Servants and Others Pension Scheme (CSOPS or alpha scheme).
The purpose is to provide Cabinet Office with guidance on how to calculate the amount of compensation in lieu of notice (CILON) to an alpha scheme member whose employment is terminated without notice.
The rules on CILON are set out in the Civil Service Compensation Scheme rules (the scheme rules).
This guidance covers the calculation for the amount to compensate for loss of pension benefits, referred to as the "CILON payment". Separate calculations are required to determine the payment relating to salary, allowances and/or bonus to which the civil servant would have been contractually entitled to, if they had remained in service during the notice period. This part of the compensation is not covered in this guidance.
We do not anticipate any special cases not covered by this guidance. However, if any do occur they should be referred to the Government Actuary's Department (GAD).
The following changes have been made when reviewing this guidance:
- Important information around the expected audience for the guidance, use of the guidance, review of factors, compliance and limitations applies across all sets of guidance. Rather than being repeated in each set of guidance, this can now be found on the scheme home page. It is important to read this information alongside the guidance.
- Calculation methodology: No changes have been made to the calculation methodology.
- Examples: There are no examples in this guidance. Worked examples, using the calculation methodology, can be found in prior versions of the guidance (though please note that these use historic factors).
- Factor tables: The "Factor Tables" tab contains the names of the tables that are referenced in the calculation methodology. The tables of factors themselves can be found in the most recently published "Consolidated Factors Workbook" which is available by clicking the "Download current Consolidated Factors Workbook" button on the scheme's home page.
- Assumptions: The key assumptions underlying the factors in each note are contained in the Consolidated Factors Workbook.
- Regulations: The regulations that require the production of the actuarial factors and/or guidance that is the subject of this note are summarised in the "Regulations" tab.