WASHINGTON, D.C. — An official countdown clock that started on March 1 marks one year until the March 1, 2013 deadline when all federal benefit recipients must receive their Social Security and other federal benefit payments electronically.
Treasurer of the United States Rosie Rios urged remaining paper check recipients to switch now and help taxpayers save $1 billion over 10 years.
Currently, about 90 percent of Social Security and Supplemental Security Income (SSI) payments are being made electronically. For the first time in recent history, the number of monthly paper check payments for Social Security, Veterans Affairs and other federal benefits has dropped to approximately 7 million ? down from a high of 11 million in 2010.
“As this deadline approaches, we”re urging the remaining 10 percent of federal benefit recipients who still receive a paper check to make the switch to electronic payments as soon as possible,” Rios said.
“The switch to electronic payments is a win-win for federal benefit recipients and for taxpayers,” Rios added. “It provides a safer, more secure, more convenient way for Americans to access their federal benefits, while also improving government efficiency and delivering more than $1 billion in savings. The sooner everyone makes the switch, the sooner we”ll realize those benefits.”
The Treasury Department published a final rule in December 2010 to gradually phase out paper checks for federal benefit payments. Since May 1, 2011, all people newly applying for federal benefits, including Social Security, Supplemental Security Income (SSI), Veterans Affairs, Railroad Retirement Board, Office of Personnel Management benefits and other non-tax payments, have had to choose direct deposit or the Direct Express Debit MasterCard card at the time they sign up for their benefits. March 1, 2013 is the final deadline by which all remaining federal benefit check recipients must receive their money electronically.
Federal benefit recipients can switch to electronic payments online at www.GoDirect.org or through the U.S. Treasury Electronic Payment Solution Center, toll-free at 800-333-1795. Check recipients should have their Social Security number or claim number, their 12-digit federal benefit check number and the amount of their most recent federal benefit check on hand when making the switch to an electronic payment option.
If signing up for direct deposit, people will also need the financial institution”s routing transit number, often available on a personal check; the account number and type.
