When creating a new account, several critical parameters need to be defined:
1. Renewal Period: This determines how often funding is replenished in the account. Options include daily, weekly, monthly, quarterly, semi-annually, annually and never.
2. Reset Balance to 0: This parameter sets the frequency at which unused funds are zeroed out, ensuring a regular use of allocated funds. The reset interval must match or exceed the chosen renewal period. For instance, if the renewal period is quarterly, reset can be defined as quarterly, semi-annually, annually, or never. If never is selected, funds will be added to the existing balance indefinitely.
3. Maximum Balance: Optionally, a cap can be placed on the amount of funds that can accumulate in the account. This prevents excessive balances and ensures resources are utilized effectively.
For example, consider a Lifestyle account with these settings:
- Renewal Period: Monthly
- Renewal Funding Amount: $200
- Reset Balance to 0: Annually
- Maximum Balance: $600
Under these terms, employees receive $200 monthly into their Lifestyle account. Any remaining funds roll over each month, provided the balance does not exceed $600. If an employee reaches $600, no further funds are added until the balance decreases. If an employee has, say, $480 in their account, they will receive a partial $120 renewal the next month. With these settings, the system allows employees to accumulate up to three months of funds at a time.