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.
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
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)
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.
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.
