Social Security Going Paperless May 1

 

Social Security is phasing out mailing checks in favor of direct deposit or "loading" on a debit card. As of May 1, 2011, new recipients will have to accept paperless payments. Those already on Social Security will have until March 1, 2013, to make the switch to direct deposits or a debit card. This applies to all Social Security benefits- retirement, disability (SSDI), SSI and survivors’ benefits.

Already eight out of 10 people getting federal benefits receive those payments electronically, officials say. The switch to electronic payments will eliminate the problem of lost or stolen checks and also the problems faced by people displaced from their homes who have to worry about getting their checks mailed to them

Exceptions

In response to public comments, the government has decided to allow people who are 90 and over and are still getting Social Security benefit checks to continue to receive their benefits via check. A government official has also said that the department expected to keep mailing checks for people in some areas, including overseas, in remote parts of Alaska and on some Indian reservations.

People living in remote areas who might have trouble getting to a bank can also petition for a waiver from the new rules.

Debit Card Option

For people who do not have accounts at a bank or credit union, the government has an option that allows them to use a Direct Express debit MasterCard issued by Comerica Bank, Treasury's financial agent. More than 1.5 million people have obtained these cards, which were first issued in 2008. Debit card users will have access to more than 50,000 ATMs around the country for one free withdrawal a month and 90 cents for additional transactions. If one of the ATMs is not in their area, they may end up paying fees at other ATMs.

If existing users do not choose an electronic payment option by March 1, 2013, they will automatically receive payments via the Direct Express debit card, so they will not experience any interruption in payment.

Support Needs

Advocates expect some recipients, perhaps a significant portion of those who have not already converted to paperless receipt, may need help to set up an account, get an ID to set one up if they don’t have a driver’s license, understand online banking and/or practice using ATMs.

Previous Story:  US Sets date to End Mail Delivery of Benefit Checks - MGH Community News, December 2010

-Adapted from: “ Social Security and Welfare Benefits Going Paperless”, by Christine Hauser, The New York Times, January 28, 2011, http://www.nytimes.com/2011/01/29/business/29checkless.html, retrieved 4/27/11; “Paper checks? Social Security going paperless May 1: Paper checks will be a thing of the past for all Social Security recipients, except those 90 or older.” Associated Press, The Christian Science Monitor, December 21, 2010, http://www.csmonitor.com/Business/Latest-News-Wires/2010/1221/Paper-checks-Social-Security-going-paperless-May-1, retrieved 4/27/11; “US sets dates to end mail delivery of benefit checks”, by Martin Crutsinger , Associated Press, The Boston Globe, December 22, 2010, http://articles.boston.com/2010-12-22/business/29284748_1_paper-checks-benefit-checks-direct-express.

 

 

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