Feds set dates for benefits checks to go paperless
Before too long, the government check will no longer be in the mail. Officials have settled on the dates when millions of people will no longer be able to get their Social Security and other benefit checks by mail.
New recipients of benefits will have to accept paperless payments starting on May 1 of next year, three months later than first proposed. Those already on Social Security will have until March 1, 2013, to make the switch to direct deposits or a debit card.
More than 58 million retirees, disabled people and surviving family members receive Social Security or Supplemental Security benefits. Already eight of 10 people getting federal benefits receive those payments electronically.
The switch to electronic payments will eliminate the problem of lost or stolen checks and also the problems faced by people displaced from their homes who have to worry about getting their checks mailed to them, said Richard Gregg, the Treasury Department's assistant fiscal secretary.
"Even though we have done a good job of encouraging people to switch over, we still are making 120 million payments by mail for Social Security every year and another 15 million annually for veterans and other types of benefits," Gregg said.
Every year, the government has to process about 600,000 claims for lost or stolen checks. Social Security will save $1 billion over the next decade from phasing out paper checks, Gregg said.
In response to public comments, the government decided to allow people who are 90 and over and are still getting Social Security benefit checks to continue to receive their benefits the same way. The government estimates there are 275,000 people who fall into that category. AP
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Less than half a percent of the checks are reported lost or stolen? That seems like a pretty good rate to me. So now people on fixed, limited incomes need to maintain checking accounts; which have monthly or annual service fees?
posted by bottomline on Dec. 22, 10 at 6:51 AM
@bottomline: It's nice to know the terminally paranoid have not taken a break for Christmas! I wouldn't worry too much. In 2013 the pres and vp will be Sarah and Michelle, and they would never let this happen. Before the end of their 8 years a rapturous public will see that a Constitutional amendment is overwhelmingly passed making the two of them co-empresses for life. All your fantastic worries will be over!New recipients of benefits will have to accept paperless payments starting on May 1 of next year, three months later than first proposed. Those already on Social Security will have until March 1, 2013, to make the switch to direct deposits or a debit card.
More than 58 million retirees, disabled people and surviving family members receive Social Security or Supplemental Security benefits. Already eight of 10 people getting federal benefits receive those payments electronically.
The switch to electronic payments will eliminate the problem of lost or stolen checks and also the problems faced by people displaced from their homes who have to worry about getting their checks mailed to them, said Richard Gregg, the Treasury Department's assistant fiscal secretary.
"Even though we have done a good job of encouraging people to switch over, we still are making 120 million payments by mail for Social Security every year and another 15 million annually for veterans and other types of benefits," Gregg said.
Every year, the government has to process about 600,000 claims for lost or stolen checks. Social Security will save $1 billion over the next decade from phasing out paper checks, Gregg said.
In response to public comments, the government decided to allow people who are 90 and over and are still getting Social Security benefit checks to continue to receive their benefits the same way. The government estimates there are 275,000 people who fall into that category. AP
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Less than half a percent of the checks are reported lost or stolen? That seems like a pretty good rate to me. So now people on fixed, limited incomes need to maintain checking accounts; which have monthly or annual service fees?
posted by ekholm on Dec. 21, 10 at 8:12 PM |
Oh, puhLEEZ. This will make the entire process cheaper and more efficient for the guv'mint, which is something we ought to be able to get behind. How many people on SS don't have a checking account? Anyone? Anyone?
posted by mngrrrl on Dec. 21, 10 at 9:42 PM |
Oh, puhLEEZ. This will make the entire process cheaper and more efficient for the guv'mint, which is something we ought to be able to get behind. How many people on SS don't have a checking account? Anyone? Anyone? posted by mngrrrl There are still many of us who experienced the "Great Depression" and therefore DO NOT TRUST THE GOVERNMENT OR BANKS! Also there are many on Social Security who rely upon Social Security as their sole means of income, this puts many of them below the poverty level and now the government is going to force them to open a bank account either checking or savings both of which entails fees. The same goes for Debit Card fees on each transaction. I am not saying direct deposit is bad, but the choice should still be for the individual to decide. The United States of America is still a FREE country is it not, even though the government and some of you would like to take these freedoms from others. Don't cry to me when they decide to take away your freedoms you cherish and tell you T.S.!!!!!
posted by LilBeaver on Dec. 21, 10 at 10:00 PM |
It's a scam to line the banks with more money so they can leverage it 100 times like they have been doing since the 90s. The pension funds and social security is bankrupt anyways, and now the pieces will be in place to cut it off from the people and leave them penniless like the bankers have done to hundreds of nations - only this time it's the big score. For anyone who keeps their money in a bank, you need to open your eyes.
posted by grude420 on Dec. 21, 10 at 10:11 PM |
Seems like I can walk into a bank and find free checking accounts with no problems at all. As long as there is an automatic deposit and the account is not overdrawn, the bank doesn't charge a cent. You don't trust the banks or the government? Hold them accountable for their actions. You can vote with a ballot and your shoes - vote out the bums and find another bank. Each of us have a lot more power than we take advantage of. Educate yourself and make informed decisions instead of depending on past experience and the evening news.
posted by schmoe9630 on Dec. 21, 10 at 10:16 PM |
posted by grude420 - Excellent comment! Now, I don't know if you are a liberal, repub or Tea Party.... I am conservative. But whatever view you come from, this takes control away from the recipient and gives it to the government. Theoretically, if you have a check in your hands. It will be cashed. You can take a picture of it, you can show that it was made out to you. The problem with debit cards is that if you give your account number to a service, they control your money. Unlike a check. If I give my account number to Ebay for a repeat purchase, I can not stop payment! Ebay has the power over me. They must release you from just that click you made. MORE BIG BROTHER. I take cash. Forget your card.
posted by rufusfring on Dec. 21, 10 at 11:58 PM |
posted by grude420 -Come on......They pay 1/4% interest!!! (Wow). We should all save money so we get 1/4 percent back..... Oh, I forgot Certificates of Deposit's... I think 1/2%!!! Joke, we could double our money on Ebay while China takes it from us via Wally World.
posted by rufusfring on Dec. 22, 10 at 12:02 AM |
Hey gang, did you notice that debit card bit? That's not a bank account debit card, it's special Social Security Mastercard debit card that the govt deposits your monthly payment directly into. You can do your shopping with the card and get cash from an ATM. And hey, you know, if you don't have a bank account you probably have to go to a check cashing shop to cash that check. Know what they charge? Frequently 3%! So that's $30 to cash a $1000 SS check. Even if you can't find a free ATM for your debit card and want all your money in cash, you can take that $1000 out in 5 $200 withdrawals during the month at $2 a shot. So $10 to the ATM or $30 to the check casher. While saving the govt (read the national debt) $1 billion. I must say you righties have a way to hate the govt no matter what it does!
posted by leftwingloon on Dec. 22, 10 at 3:34 AM |
They should have to direct deposit there checks. I have mime done that way. The banks are starting to charge for sending you your statements by mail. No more tax forms sent by mail. And as far as charging a fee, how many banks charge a fee to cash your check and then you bring it home and put it under your pillow, real smart,.
This is all heading to ONE place people. To you having NO money ...except ONE debit card owned by a Government-Owned bank account. Your employer direct-deposits into this account ...Government benefits direct-deposits into this account ...THE GOVERNMENT GETS THE ORIGINAL STATEMENT ON THIS ACCOUNT, YOU JUST GET A COPY. The government, receiving the original copy of the statement, will have an itemized detail report of any and all purchases ...and of course, owning the account, will be able to stop any or all purchases. Ever went over your credit limit on a credit card and received a "DECLINE" at a cashier?? The government will also have that power ...if you are FAT and try to get an unhealthy Big Mac at McD's ...your card will receive a "GOVERNMENTALLY Declined" message and you will be unable to buy!! Watch for it folks ...it WILL come.posted by Frankie on Dec. 22, 10 at 5:18 AM |
posted by bottomline on Dec. 22, 10 at 6:51 AM
posted by leftwingloon on Dec. 22, 10 at 7:33 AM |
Why not? Welfare recipients have been getting money for years without having to lift a finger to go down to the bank to cash a check. You don't want those welfare recipients to have to get out of bed for their free money, do ya?
posted by democratslie on Dec. 22, 10 at 7:46 AM |
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