http://www.yankton.net/articles/2013/02/01/community/doc510b4517d9cdc015851688.txt

Paper Benefit Checks To End March 1

By Andrew Atwal
andrew.atwal@yankton.net

By March 1, all Social Security checks and other benefit recipients who are receiving their checks by mail must register for direct deposit or the direct express deposit card.

“In January 2011, we sent out about 11 million checks each month,” said Treasury Department spokesperson Walt Henderson, director EFT strategy division of the U.S. Department of Treasury Financial Management Service. “As of this January, we are down to only about 5 million checks a month. This shows that people are listening and are making the switch. We hope to get the remaining recipients registered by the March 1 deadline.”

One of the main reasons for the switch is that sending checks out by mail is significantly more expensive than electronic payments. It costs about $2 a check to be sent by mail, but only about 10 cents for an electronic payment.

“This is really good savings for taxpayers,” Henderson said. “There is also added safety and convenience of doing electronic payments, and it’s the best way for Social Security and other benefit recipients to get their payments.”

It is estimated that converting the remaining paper check recipients to electronic payments will save American taxpayers about $1 billion over the next 10 years.

Henderson added that there are no lost, stolen or delayed checks, or issues delivering checks in bad weather, with the new electronic payments.

Although it is the law to switch, if someone doesn’t switch by the March 1 deadline, Social Security officials said they will be sensitive to the fact that these are needed payments for many people.

“We won’t interrupt their payments if they don’t comply with the deadline, but we will reach out by mail to them to get them to switch,” Henderson said. “However, there are waivers for people in certain situations, including geographic barriers, like people living in a remote place without access to an ATM or infrastructure for electronic payments. There is also a waiver for someone with a mental impairment and anyone over 90 years old.”

In order to make the switch to electronic payments, there is a call center setup to help people register at 1-800-333-1795. You can also visit the bank or credit union with whom you have an account and they can help you make the switch. People can also visit the Social Security office in Yankton at 121 W. 3rd Street.

When you go to make the switch, you should have the following information with you:

• 12-digit federal benefit check number;

• Amount of most recent federal benefit check;

• Financial institution’s routing transit number, which is often found on person checks (direct deposit only)

• Account number, which is also often found on personal checks, and type — checking or savings (direct deposit only)

“I really think the electronic method is the best way for people to receive their payments,” Henderson said. “You don’t have to wait for your check to arrive in the mail, the funds are in your account on the morning of the payment date. You also don’t have to make an unnecessary trip to the bank and electronic payments wipe out the possibilities of difficulty delivering checks in inclement weather.”

For more information on switching to the electronic payments, visit www.godirect.org.

You can follow Andrew Atwal on Twitter at twitter.com/andrewatwal