Social Security Disability Payments Go Paperless As of March 1

Posted on Mar 23, 2013

March 1, 2013 marked the end of paper checks as payment from the Social Security Administration.

The Treasury Department published a final rule in December 2010 to gradually phase out paper checks for federal benefit payments; since May 1, 2011, any new recipients of federal benefits, including Social Security disability, had to choose direct deposit or the Direct Express card at the time of enrollment. Direct deposit involves having benefits deposited directly in to the beneficiary's bank account. Direct Express is for recipients without a bank account; monthly benefits are directed to a card with the MasterCard logo, to be used as a prepaid debit card.

"Choosing direct deposit or the Direct Express card makes it easier, safer, and more convenient for beneficiaries to receive their payments. Switching to an electronic payment is not optional— it's the law," said David Lebryk, commissioner of the Treasury Department's Financial Management Service.

Right before the final switch, about 93 percent of Social Security and Supplemental Security Income (SSI) payments were being made electronically. Changing that remaining seven percent over from paper checks to electronic payments will save $1 billion over the next 10 years.

A few beneficiaries will still be allowed to keep receiving paper checks, including individuals age 90 or older, people unable to use electronic payment methods because of geographic hardship or mental impairments, and people who don't feel comfortable using electronic payment for a good reason. To be considered, these beneficiaries must ask for a waiver.

If you have questions about Social Security disability or Supplemental Security Income benefits, call our Omaha Social Security disability claims lawyers toll-free at 402-933-5400 for a quick response. We offer free case evaluations. When you work with Cuddigan Law, there is no risk: We don’t collect any legal fees from you unless we can successfully obtain benefits for you, and the amount of fees we can collect is limited by federal law.

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