If you receive Social Security disability checks in the mail, the U.S. government has come changes coming for you. In an effort to reduce cost and cut down on paper waste, the Department of the Treasury has decided to move to electronic deposits for all new disability benefits recipients, and further down the road, all disability benefits recipients.
The change will happen for new Social Security disability benefits recipients by May 1, 2011. These individuals will be asked for information that will allow the SSA to send their money directly to their bank account.
Individuals who currently receive disability benefits will move to the paperless system by March 1, 2013 – so they have time to understand the changes and if necessary set up a bank account that can receive electronic direct deposits.
SSDI benefit recipients are not the only ones who will be affected by this change. Also affected are individuals who receive retirement checks and veterans benefits will also be moving to electronic deposits.
The government expects to save $120 million each year with this change, which translates to $10 billion in savings over the next 10 years. The change will also eliminate the risk of lost paper checks and to an extent it will prevent fraud from checks being stolen in the mail.