"Reserve Funding" is Lively’s default and recommended funding method for employers. It ensures that your employees have immediate access to their funds on the very first day of their plan term.
How it works:
Under this model, employers must pre-fund a percentage of their total plan elections to create a funding pool. You are required to maintain a specific balance in this pool, known as the "Reserve Requirement", which is used to cover employee claims. This reserve is then replenished on a recurring basis (weekly or monthly) to ensure the balance remains sufficient.
Replenishment options and pre-fund percentages:
The amount you are required to pre-fund depends directly on how often you choose to replenish the account. You can select from two options:
Weekly Replenishment: Requires you to pre-fund 5% of the total sum of all plan elections.
Monthly Replenishment: Requires you to pre-fund 15% of the total sum of all plan elections.
Note: Post-Deductible HRA plans may permit a lower pre-fund percentage than the options listed above. Please speak to your Lively Representative to learn more.
Example calculation:
Imagine an employer has 10 employees enrolled in an FSA, and each employee elects $1,000 (Total Elections = $10,000).
If the employer chooses a monthly replenishment cadence, they must pre-fund 15% of that total.
Total Pre-fund Amount: $1,500 ($10,000 × 0.15).
Confirming your Reserve Requirement:
After discussing your preferred schedule with your Lively Representative, you must log in to your dashboard to finalize the setup.
Log in to the Lively Employer Dashboard.
Follow the guided step-by-step instructions to confirm your Reserve Requirement.
Note: Lively will not debit your bank account for the pre-fund amount until you have completed this confirmation step online.
Need Assistance? If you have any questions during this process, please reach out to your Customer Success Manager or the Customer Success team for assistance.
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