Open allocations allow you to give employees a flexible budget that they can distribute across multiple programs (e.g., wellness, LSA, HSA) based on their preferences.
Instead of assigning a fixed amount to a single program, you define a total allocation and let employees decide how to split it.
How do open allocations work?
When creating an open allocation, you configure a set of rules that determine when funds are available, how they are distributed, and how employees can allocate them.
Key components include:
Start date: When the allocation becomes available
End date / reset date: When the allocation period ends or renews
Number of disbursements: You can spread the total amount across multiple payments (e.g., monthly)
Eligible programs: Select which programs employees can allocate funds to
What is the election period?
The election period is the number of days employees have to choose how to split their allocation across available programs.
For example:
You set a 30-day election period
Employees have 30 days to decide how much goes to each program (e.g., $500 to LSA, $500 to HSA)
What happens if an employee doesn’t make a selection?
If an employee does not make a choice within the election period:
A default allocation split is automatically applied
This split is configured by the administrator
For example:
50% to LSA
50% to HSA
This ensures funds are still distributed even if no action is taken.
Can allocations be distributed over time?
Yes.
Allocations can be divided into multiple payments using a distribution schedule, such as monthly (e.g., 12 payments). Each disbursement follows the same allocation rules defined at the start.