SS, SSI recipients:No more paper checks as of March 2013
The state of Illinois is to be commended for the number of Social Security and Supplemental Security Income recipients now receiving their monthly benefits through direct deposit, according to the U.S. Department of the Treasury --- which issues the benefits.
But even with 91 percent of the states recipients on board with the electronic disbursement, the Treasury Department is still concerned about the 225,000 people still getting paper checks; the clock is ticking for them to make the switch. In just over one year from now, the Treasury will no longer issue paper checks for federal benefits, including Veterans Affairs payouts.
Starting March 2013 the Treasury will cease sending paper checks and will move to a full electronic payout of monthly benefits. A spokesman for the federal agency told the Chicago Citizen that the move from paper checks is designed to save the government money.
Tim explained that it costs $1 for the Treasury to issue recipients paper checks and less than a dime to disburse the benefits electronically.
The primary reasons are cost savings, he said. And we make it really easy for people to sign up for direct deposit.
He added that notices had been sent to recipients last year letting them know that the time for switching over was drawing near. The Treasury Department contends that paper checks also put recipients money at possible risk for theft and fraud --- which also costs the government money.
A study sponsored by the department found that people age 62 and older in Illinois and 13 other Midwestern states who get federal benefits are most concerned about protecting their money with over 33 percent surveyed saying they had been a victim of identity theft or know someone who has been. This adds to the Treasurys push for direct deposit.
Just last year, more than 540,000 Social Security and SSI paper checks were reported lost or stolen and had to be reissued, while an estimated $93 million worth of Treasury-issued checks were fraudulently endorsed, said David A. Lebryk, commissioner of the Treasury Departments Financial Management Service.
Tim explained that recipients could have funds electronically deposited into their own bank account or loaded to a pre-paid debit card, including one issued by the Treasury Department. As the government is concerned about its own bottom line, he said the department is very sensitive to consumer protections and fees.
Benefits loaded through financial institution or pre-paid cards other than the governments is subject to the rules of the respective institution. But the governments Direct Express card offers one free ATM withdrawal and a fee of 90 cents for each one after that each month.
For people still receiving paper checks, they can log on to www.GoDirect.org for more information on making the transition to electronic deposits.
by Rhonda Gillespie
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