An allotment is a portion of your paycheck which instead of being deposited into your primary bank account is deposited into another account as directed by you.
These funds are paid in full with the first of the month. But the reduction of your payment is spread across both paychecks. For example, suppose normally receive $1,000 on each paycheck and you establish a $100 allotment. For your normal payments on the 1st and the 15th, you would begin receiving $950. But also on the first, the $100 would be transferred to the account you directed the funds to be sent to.
There are various reasons you may want to establish an allotment. You may have a savings account you are trying to fund for emergencies, a brokerage account to deposit money for investing, or some support payments.
Using allotments is great as the transfer of funds becomes automated, they are paid in full at the beginning of the month, and there is a record the funds were transferred should it come into question.
Setting Up an Allotment on myPay
The first step to set up an allotment on myPay is to access your myPay account. You can access the myPay site here. Once you are at the site, login to your account with either the password or Smart Card.
Once you have arrived at the main menu for myPay, select the option for “Allotments”. It is found near the top under the section for “Pay Changes.”
Within the Allotments section, there is additional information related to allotments. Feel free to read the information. Once you are ready, click on the start button.
After clicking start, you will be presented with the below form to complete the allotment. Enter in the account number, routing number, and the account type (checking or savings). Then enter the amount you would like transferred to the account each month and the name of the recipient.
Once the form is completed hit save and confirm the creation of the allotments.
Congratulations, you have successfully created an allotment in myPay.
If at a later date you would like to change or stop the allotment, you can do so by going back into the Allotments section from the main menu of your myPay account.