Financial Allotment/Health Savings

A financial allotment is a deposit into a checking or savings account at a financial institution (a portion of an employee’s salary) deducted through recurring payroll deductions. This allotment is deposited through DD/EFT.

Note: Allotments for bill paying purposes are considered to be discretionary allotments.

This section will explain how to establish a Financial Allotment from data submitted on
‎Form SF 1199A.

Before beginning, the following information is needed:

• Type of Account
• Account Number
• Amount of the Allotment
• Bank Routing Number

Where There Are Insufficient Funds for a Financial Allotment

The employee’s net pay must be sufficient to cover the amount of the financial allotment(s). If the net pay due the employee after applying all required payroll deductions is less than the amount of the allotment authorized, the allotment will automatically be nullified for that particular pay period. If the employee has two allotments and the net pay is insufficient to cover the aggregate of both authorizations, both allotments will be automatically nullified for that pay period.

Change to a Financial Allotment

Changes are processed to:

• Decrease or increase the amount of the allotment
• Change the routing number, account number, and type of account
• Change financial organizations

Note: If the routing number, account number, and type of account are not entered exactly as they are in the database and the employee has only one allotment in effect, a second allotment will be created with the new allotment that was established in error.

Cancellation of a Financial Allotment

An allotment is canceled when the employee elects to permanently discontinue deductions for the allotment or to replace the allotment with a new allotment.

Allotments are automatically canceled in cases of separation, retirement, death, or transfer to another Department; therefore, it is not necessary to enter a financial allotment document.