Social Security is forcing electronic receipt of payments

Starting May 1, millions of people will no longer be able to get their Social Security and other benefit checks by mail. They will have to accept paperless payments and, according to Social Security Commissioner Michael J. Astrue, they better not wait until the deadline to make the switch to electronic payments. Those already on Social Security will have until March 1, 2013, to make the switch to direct deposits or debit cards.


According to Richard L. Gregg, the Treasury Department's assistant fiscal secretary, the government has to process about 600,000 claims every year for lost or stolen checks. Phasing out paper checks in favor of the electronic process will save Social Security $1 billion over the next decade. He related:

"Even though we have done a good job of encouraging people to switch over, we still are making 120 million payments by mail for Social Security every year and another 15 million annually for veterans and other types of benefits."

There is an exception for people 90 and older who are still getting Social Security benefit checks. They may continue to receive their benefits the same way. There are about 275,000 people who qualify in that category.


Also, those people living in remote areas who might have trouble getting to banks can petition for a waiver and still receive checks per usual. About 1 percent of current benefit recipients will likely petition for that kind of waiver.


If you don't have a bank account -- and about four million Social Security recipients fall into this category -- your options are limited under the new paperless plan. 


The government gives the option that allows those without a bank account to use a Direct Express debit MasterCard issued by Comerica Bank, Treasury's financial agent.  More than 1.5 million people have obtained these cards, which were first issued in 2008.


With direct deposit, a recipient avoids the fees associated with the Direct Express Debit MasterCard including the ATM fees. A Social Security recipient can enroll or to help a loved one enroll in the direct deposit program.

Toll-free phone number, 800/333-1795, for assistance.