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Social Security Administration Announces Switch to Electronic Checks for Federal Benefits

Posted on May 27, 2011

The United States Social Security Administration (SSA) has announced that by March 1, 2013, individuals receiving federal benefits by paper check will have to switch to electronic payment options. The two options available will be direct deposit to a bank or credit union account, or to a debit card account.

The new Social Security electronic check process is being implemented to enhance the safety and convenience of electronic payments and phase out paper checks for federal benefit and non-tax payments by March 1, 2013.

Millions of Americans rely on Social Security for benefits relating to Medicare, retirement, disability, and Supplemental Security Income (SSI). Anyone receiving benefits for the following will be affected by the new electronic benefits check system:

  • Social Security
  • Supplemental Security Income (SSI)
  • Veterans Affairs
  • Railroad Retirement Board
  • Office of Personnel Management
  • Department of Labor (Black Lung)

Individuals who apply or have applied for benefits on or after May 1, 2011, will automatically receive their payments electronically, which means these individuals must select their desired direct deposit means of payment. Individuals currently receiving paper checks will be required to switch to direct deposit by March 1, 2013.

The other advantages of the new Social Security electronic check payment system relate to saving 12 million pounds of paper within the first five years as well as sparing taxpayers the cost of $120 million a year for paper checks. However, understanding and working with the new system can be complicated.

The Jacksonville Social Security disability check lawyers at Farah & Farah are available to ensure that you receive the amount of benefits you deserve with the new SSA electronic checking system. Contact us today at 800-533-3555 for more information.