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Social Security Benefits Checks Go Electronic
Posted in: Benefits on April 18th, 2012

disability benefitsThe Social Security Administration is making some big changes in the way they do business in efforts to streamline services and make the benefits process more efficient. Although many people have grown accustomed to receiving their disability benefits checks by mail, many of the federal program benefits checks will go electronic next year.

Electronic Transactions

Starting in 2013, several Social Security programs will begin dispersing their benefits checks electronically. Social Security Disability, Supplemental Security Income, veteran’s benefits and railroad pensions are just a few of the programs whose checks will be transmitted electronically next year. Benefit recipients will be receiving their benefits in the form of direct deposit into a bank, credit union or other approved account, rather than a paper check.

The reason for the change is twofold (1) the SSA is hoping to cut costs and (2) electronic transactions should make the benefits system safer. Issuing close to 73 million payments a month, the phasing out of paper checks will streamline the process and eliminate the additional costs of materials and staff for processing the checks. Further, there has been an increasing problem among beneficiaries having their checks stolen and fraudulently cashed. Criminals know who to target and how to access funds of paper checks, which should be eliminated once the secure electronic payment system is implemented.

 

 

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