No more social security checks via snail mail for U.S. retirees

No more social security checks via snail mail for U.S. retirees

Social security checks will no longer be issued by the government and American retirees should no longer expect them in the mail soon. The Social Security Administration is phasing out paper checks in accordance with a directive from the Treasury Department in a cost-cutting move. The said move would free up some $120 million in American taxpayers' money every year and the government estimates that up to $1 billion would be saved over the next decade because of the paper phase-out. U.S. retirees and veterans will instead receive their social security benefits and pensions through electronic means. They have until March 1, 2013 to switch to electronic receipt of their social security benefits. "Eight in 10 federal benefit recipients already use direct deposit, and now millions of additional retirees, veterans and other Americans will also receive money in the safest, most reliable way -- electronically," said Richard Gregg, the Treasury Fiscal Assistant.

Treasury Department officials are encouraging the use of its Direct Express Debit MasterCard as an alternative for those who don't want direct deposit. Since it was launched two years ago, the department said 1.5 million Americans are now using the prepaid cards. The Comerica Bank-issued cards do not require sign-up and monthly dues, the Treasury Department said. Beneficiaries aged 90 and above are exempted from converting to direct electronic payments to get their benefits. Some have reasoned that older people are not familiar with electronic payments and would be better served by retaining the old method. Under the new rule, they would continue to receive social security checks in their mail boxes.

Posted by James Fried on Wednesday December 22 2010, 1:08 AM EST. Ref: Wall Street Journal. All trademarks acknowledged. Filed under Featured News, Finance. Comments and Trackbacks closed. Follow responses: RSS 2.0