---
title: "What are open allocations and how do they work?"
description: "Learn how open allocations let employees split a budget across multiple programs."
url: https://help.tedy.app/en/articles/48-what-are-open-allocations-and-how-do-they-work
collection: "Allocations"
updated: 2026-09-10
language: en
alternates: [fr]
---

# What are open allocations and how do they work?

Learn how open allocations let employees split a budget across multiple programs.

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.