Social Security Benefits and Electronic Payments
Under a U.S. Department of the Treasury rule, on March 1, 2013, most federal benefit will require and electronic payment instead of by paper check. Recipients receiving their Social Security benefits electronically are allowed to request direct deposit or they can have the benefit deposited in to a Debit Card called Direct Express. For examples, Direct Express charges 0.75 per month to receive monthly statements.
Electronic Payments: The Best Way to Get Benefits: Currently, more than 94% of Social Security beneficiaries and nearly 83% of Social Security Income beneficiaries receive their monthly benefits electronically, the safest and most reliable method of payment delivery.
“This important change will provide significant savings to American taxpayers who will no longer incur the annual $120 million price tag associated with paper checks and will save Social Security $1 billion over the next 10 years,” Treasury Fiscal Assistant Secretary Richard L. Gregg said in a release.
People still getting paper checks have the option of direct deposit to a financial institution account of their choice or Treasury's Direct Express® debit card program. Advantages and enrollment information are available online at GoDirect.org.
Exceptions: Individuals may request an exemption to the electronic payment requirement from Treasury Department. More information on exemptions is available from Social Security Online.