Mass move to Social Security benefit payments
Starting September 30, the Social Security Administration (SSA) will no longer mail paper checks to recipients. It marks the end of a tradition that stretches nearly a century. Instead, recipients will have to choose between two methods of receiving payments: direct deposit into a bank or through a prepaid debit card called Direct Express.
The shift, according to officials, is meant to modernize the federal payment system, reduce spending, and eliminate fraud. While many seniors are worried about losing their monthly checks, the SSA has assured citizens that Supplemental Security Income (SSI) payments of $943 a month for individuals will not be disrupted.
Why the change is occurring
Paper checks have long been considered risky and expensive. Checks, according to the SSA, are 16 times more likely to be lost or stolen than electronic payments. That creates opportunities for fraud, delays, and unnecessary stress to dependents on their monthly checks.
Cost is the second factor. The SSA says it pays some 50 cents to send and print a check, while an electronic transfer costs less than 15 cents. Ultimately, it could save the government millions of dollars per year.
Who will be affected?
The change will impact about 500,000 people, or about 0.8% of Social Security beneficiaries, according to CNN. It won’t be an issue for most recipients because nearly all of them already receive direct deposit. But it will represent a significant change for a few people, especially older individuals who are accustomed to getting paper checks.
But fortunately, the SSA has made exceptions for people having trouble adjusting to electronic payments.
Hardship waivers and exceptions
The GoDirect program, operated by the U.S. Treasury, allows some people to continue receiving paper checks if electronic payments are causing serious hardship. There are three main exceptions:
Mental impairment – if it would be hard for them to adjust to electronic payments.
Remote living conditions – if the person lives in a place where there is no bank access or reliable electronic services.
Age 90 or older – this age group of elderly can continue to receive paper checks.
Anyone who believes that they qualify for these exemptions is free to contact the U.S. Treasury Electronic Payment Solution Center at 1-855-290-1545 or send in a waiver form by mail.
Political pressure and promises
Lawmakers are monitoring this issue closely. Senator Elizabeth Warren has met with Social Security Commissioner Frank Bisignano to discuss exceptions that may be possible. She noted that though the administration plans to give priority to those who already have bank accounts, officials promised that “no one will be left behind.”
That promise will enable seniors who genuinely require paper checks to keep getting them, even beyond the September 30 deadline.
When Payments Arrive
For recipients of SSI, the $943 monthly payments for individuals (and $1,415 for married couples) will continue as usual. Social Security operates a monthly payment system based on the birthday of the recipient:
- Second Wednesday: 1st to the 10th birthday
- Third Wednesday: 11th to the 20th birthday
- Fourth Wednesday: 21st to the 31st birthday
- Nothing is altered in this system under the new rules.
Why it matters for seniors
For others, such as some older adults, this shift away from paper checks is intimidating. Technology, access to financial institutions, and fraud are valid issues. However, experts say that this shift to electronic payments is actually safer. Direct deposits and Direct Express cards are harder to steal, reach the recipients on time, and provide less potential for fraud.
At the same time, the hardship waivers ensure that the most vulnerable beneficiaries—those with disabilities or advanced age—continue to receive paper checks if the circumstances call for it.
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