The year 2013 marks a new chapter in the history of
the Social Security Administration (SSA). It was announced by the federal
agency that starting March of next year, all benefits will be paid
electronically. This means that next year, every SSA beneficiary won’t be
relying on their mailboxes anymore for them to receive their monthly disability
benefits.
This development won’t only affect the SSA and its
beneficiaries, but also beneficiaries who are receiving veteran’s benefits,
railroad pensions, and federal disability payments. The Internal Revenue
Service (IRS) even strongly encourages taxpayers to process their tax refunds
with the use of the electronic method.
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Last year, the SSA told those who were planning to
apply for Social Security benefits on or after May 1, 2011 that electronic
payments would be given to them. Anyone who is thinking of applying for Social Security
disability or retirement benefits this year may still receive checks
via mail after getting approved. But with the March 2013 deadline looming,
every new beneficiary is now encouraged to sign up for electronic payments.
Before, disability checks sent through mail was the
SSA’s primary method of payment. But because of the rising incidents of fraud
and lost or stolen benefits in the mail delivery system, the SSA decided it was
time to switch to the electronic method.
The SSA’s effort to exclusively send payments
electronically from March 2013 onwards is seen by the federal agency as a
cost-cutting measure. The SSA, with the switch to the electronic mode of
payment, will save the federal government nearly $120 million. For the next ten
years, the SSA will be saving up to $1 billion dollars.
For those who are still receiving benefits via
mail, here are some options in which they can sign up for the electronic
method:
A. Direct deposit
B. Direct Express® card
program
C. Electronic Transfer Account
Signing up for any of the above options must be
done before the deadline next year. They can contact their nearest bank or
their nearest Social Security office for further inquiries.
