Treasury eliminating usage of paper checks for federal payments

The U.S. Treasury recently issued a new rule that will phase out the use of paper checks for federal benefit payments. Such a rule will save the Social Security Administration alone $1 billion. The final rule will first impact those applying for benefits on or after May 1, 2011, who will be required to receive their payments electronically. Those who are currently receiving paper checks will have until March 1, 2013, to set-up an account where there benefits can be direct deposited. Benefit recipients have the option of direct deposit into a bank or credit union account of their choice or into a Direct Express Debit MasterCard card account.

The final rule requires all federal benefits to be paid electronically, including:

• Social Security
• Supplemental Security Income
• Veterans Affairs
• Railroad Retirement Board
• Office of Personnel Management
• All other non-tax payments

The Treasury intends to launch a national public education campaign around the change, and current check recipients will receive information enclosed in their payments. The national campaign will include public service announcements, a newly re-designed www.GoDirect.org and strategic partnerships with national, regional and local organizations on the grassroots level.