We are now less than a week away from a major change at the Social Security Administration (SSA). Next Tuesday, which is September 30th, will mark the final day before the SSA transitions all of its payments to electronic payment methods, and as such, paper check recipients are urged to take action soon. In July, the agency issued an update on its blog stating that it will no longer issue paper checks to beneficiaries as of September 30th. This payment shift has come about in accordance with a broader federal initiative aimed at modernizing all transactions made to and from “America’s bank account”.
The White House issued the executive order calling for all transactions to be conducted electronically on March 25, and once September 30th passes, paper checks will no longer be issued or received by the broader federal government — SSA included. With regards to Social Security beneficiaries, the agency has two electronic payment options available. Here is everything you need to know.
Paper checks soon to be a thing of the past
According to the executive order, the continuous use of paper based payments such as mailed checks or money orders “imposes unnecessary costs; delays; and risks of fraud, lost payments, theft, and inefficiencies.” In the SSA’s announcement of the change, speed and efficiency, enhanced security, and cost savings are all cited as the rationale behind the decision to transition all payment methods — with the executive order citing a similar line of reasoning.
“Paper checks are 16 times more likely to be lost or stolen compared to electronic payments, increasing the risk of fraud. Electronic payments provide a safer, more secure way to receive benefits,” the SSA wrote. As such, the agency has been actively encouraging all of its paper check receiving beneficiaries to switch over their payment methods before the deadline. In pursuit of this, inserts explaining the change and the necessary steps to take have been included with all mailed benefit checks.
On September 19th, the SSA issued another reminder on its blog urging beneficiaries to act soon. “If you still receive paper checks, now is the time to act. To avoid any disruption in payments, you should switch to electronic payment options before September 30,” the reminder noted.
How to enroll
The SSA has two electronic payment methods available to beneficiaries:
- Direct Deposit: Social Security beneficiaries can manage direct deposit through their personal my Social Security account. Supplemental Security Income recipients and international beneficiaries can call 1-800-772-1213 for help.
- Direct Express® Card: For those without a bank account, enroll by calling
1-800-333-1795 or visiting www.usdirectexpress.com.
What is the SSA Commissioner saying?
When Frank Bisignano was appointed to the role of commissioner at the SSA in May, he shared a desire to turn the agency into a “digital first organization”, and this transition is likely in pursuit of this goal. Relative to the total amount of beneficiaries, this change will only impact a very small cohort of benefit recipients. According SSA data, over 99% of recipients already receive their benefits via direct deposit, with the remaining >1% amounting to around 500,000 individuals.
“This transition primarily affects a small group of beneficiaries who have not yet switched to electronic payment methods. Less than one percent of beneficiaries currently get paper checks,” Bisignano said to NewsNation.
“This issue around checks is really not as much only in operational cost savings, we believe it eliminates fraud. The fact of the matter is, people have continually called us every month about a check missing from their mailbox,” Bisignano added. “The Social Security number is the number one identifier of a person that they use in their life. We continue to drive a technological agenda, and we will increase technology spending in the agency to deliver better results for the American public.”