In 1984, Allegiance became one of the first companies to offer third-party administration of cafeteria plans. Cafeteria plans, commonly referred to as flexible benefit plans, allow employees to elect to defer wages on a tax-deferred basis to pay for a variety of benefits. Benefits that may be paid using tax-advantaged salary deferrals include some types of group insurance premiums, medical expenses that are not covered by insurance, and certain expenses incurred for dependent care. Allegiance helps companies implement flexible benefit plans which meet the requirements of IRS Code § 125.  Plans are administered to maximally benefit clients while maintaining compliance with federal regulations. The Allegiance flexible benefits department also offers third-party administration of health reimbursement arrangements (HRAs) and qualified transportation plans.

Allegiance provides enrollment materials and employee education to allow for an efficient annual open enrollment period. Once elections have been recorded, claims are processed and reimbursements made each business day. Eligible expenses are reimbursed either by check or direct deposit, and reimbursement normally occurs within three to five business days from receipt of claim for health flexible spending accounts (FSAs) and dependent care FSAs. Transportation claims for mass transit and parking, as well as HRA claims, are reimbursed according to employer plan design.

Employers also have the option of choosing the Flex Convenience® card as a method of reimbursement for their employees. This card allows payment for eligible services at the point of service. The convenience of this reimbursement option for flex participants is immediate access to their flexible spending account. The card eliminates gap between outlay of funds and reimbursement. The Flex Convenience® card can be used at any qualifying health or dependent care provider or merchant location where MasterCard is accepted. For a list of qualified merchants that are not health care providers, dental care providers, vision care providers, or pharmacies, please go to http://www.sig-is.org/en/documents/SIGIS_Merchant_List.pdf. The card is available for health FSAs, dependent care FSAs, and qualified transportation plans.