In an effort to modernize all payments to and from the federal government, the Social Security Administration (SSA) announced on July 14th that it will no longer be issuing paper checks to its beneficiaries as of September 30th. This announcement is coming about in accordance with the executive order titled “Modernizing Payments To and From America’s Bank Account” which had been issued by the White House on March 25th.
As such, the SSA is actively encouraging all paper check recipients to switch over to one of the two available electronic payment methods before the end of the month. The SSA Commissioner Frank J. Bisignano has also been working towards restructuring operations at the SSA as part of a broader modernization plan. Here is everything you need to know.
No more paper checks
According to the executive order, the use of paper based payments “imposes unnecessary costs; delays; and risks of fraud, lost payments, theft, and inefficiencies.” Additionally, mail theft is said to have increased dramatically since the COVID-19 pandemic, with Department of the Treasury checks being “16 times more likely to be reported lost or stolen, returned undeliverable, or altered than an electronic funds transfer (EFT).”
“By moving to electronic payments exclusively, we aim to improve efficiency, security, and ensure beneficiaries receive their monthly benefits promptly,” the SSA wrote in its update. Of the number of beneficiaries which totals to over 70 million individuals, a little over 99% of Social Security recipients already receive their benefits by means of Direct Deposit. The remaining less than one percent of paper check receiving beneficiaries will have likely received a notice from the SSA explaining the upcoming change and whats steps to follow.
The SSA currently has two electronic payment options available:
- Direct Deposit: Beneficiaries should enroll in direct deposit with their financial institution. Payments can be deposited directly into your checking or savings account.
- Direct Express® Card: For people without a bank account, the Direct Express card is a prepaid debit card designed specifically for federal benefit payments.
Beneficiaries can update their payment information online through their my Social Security account, or by calling in to their local SSA field office. If a beneficiary is unable to make the switch due to either being unbanked, or living in areas that do not have the infrastructure to support electronic banking, exceptions will be made. In these cases, the beneficiary will need to apply for a waiver. The SSA Commissioner also recently confirmed that paper checks will still be disbursed to those who need it.
SSA Commissioner visits field offices
Since stepping into the role of SSA Commissioner in May, Frank Bisignano has been visiting SSA field offices across the country to oversee the latest customer service updates, as well as to discuss any other issues that need to be addressed at the respective field offices. According to the latest press release from the SSA, Bisignano visited a field office in Wichita Kansas with Representative Ron Estes, Chair of the House Ways and Means Social Security Subcommittee “to discuss how SSA is deploying technology and streamlining processes to improve the customer experience.”
Bisignano also said that, “the agency has about 75 million online accounts and set a goal of growing that total to 200 million by as early as 2026.” He also highlighted the fact that field offices would remain open for in-person needs.
“Social Security field offices across the country are the front lines for customer service at SSA, and it is critical that our field office employees are equipped with the tools and technology they need to provide the world-class customer experience Americans deserve,” Bisignano stated in the September press release. “At our Wichita field office today, I talked with Representative Estes about opportunities for Congress and SSA to work together so that SSA can continue serving the American people for generations to come. We also took the opportunity to speak with the team there to understand what they need to better meet the needs of our customers.”