Social Security to Get Rid of Paper Checks to Save $1 Billion
The countdown begins for those who are receiving Social Security benefits by means of paper checks after the U.S. Treasury Department has announced its implementation of electronic payments in sending benefits after Sunday. The federal government foresees a $1billion savings for the next 10 years by shifting to electronic payments.
However, those 11 million beneficiaries who are currently receiving federal benefits such as retirement benefits, disability benefits and supplemental security income, among others, will still continue to receive paper checks until March 1, 2013.
U.S. Treasurer Rosie Rios said that issuing payment checks costs 92 cents more than direct bank deposits. “It is the right thing to do for benefit recipients and American taxpayers alike,” she further said.
Along with this, the Social Security Administration has ceased on sending annual Social Security statements to cut off budget spending.
The Treasury Department also explained that paying beneficiaries electronically is more convenient for them. It is also proven to be safer than sending paper checks, avoiding lost or stolen benefits.
Now, recipients must have their personal accounts in banks or in other financial institutions capable of receiving direct deposits to receive their benefits.
This government program is just one of those plans to cut off federal spending and save Social Security from shutting down. The implementation of electronic payments is a great help to save money and resources.
Electronic payment can be a safer and more convenient means to pay benefits. Yet, the federal agencies must ensure that all safety issues have been resolved to avoid Social Security fraud and identity theft before implementing this program nationwide. If not, it is better to halt the plan and consider going back to paper checks.
The countdown begins for those who are receiving Social Security benefits by means of paper checks after the U.S. Treasury Department has announced its implementation of electronic payments in sending benefits after Sunday. The federal government foresees a $1billion savings for the next 10 years by shifting to electronic payments.
However, those 11 million beneficiaries who are currently receiving federal benefits such as retirement benefits, disability benefits and supplemental security income, among others, will still continue to receive paper checks until March 1, 2013.
U.S. Treasurer Rosie Rios said that issuing payment checks costs 92 cents more than direct bank deposits. “It is the right thing to do for benefit recipients and American taxpayers alike,” she further said.
Along with this, the Social Security Administration has ceased on sending annual Social Security statements to cut off budget spending.
The Treasury Department also explained that paying beneficiaries electronically is more convenient for them. It is also proven to be safer than sending paper checks, avoiding lost or stolen benefits.
Now, recipients must have their personal accounts in banks or in other financial institutions capable of receiving direct deposits to receive their benefits.
This government program is just one of those plans to cut off federal spending and save Social Security from shutting down. The implementation of electronic payments is a great help to save money and resources.
Electronic payment can be a safer and more convenient means to pay benefits. Yet, the federal agencies must ensure that all safety issues have been resolved to avoid Social Security fraud and identity theft before implementing this program nationwide. If not, it is better to halt the plan and consider going back to paper checks.
