Electronic Transitions: Social Security Announces End to Paper Check Delivery; Crucial Information Explained
Starting on September 30, 2021, all federal payments, including Social Security benefits, tax refunds, and vendor payments, will be made electronically, as part of an initiative to modernize federal benefits payments and reduce fraud. This mandate, driven by President Donald Trump's executive order, affects about half a million recipients who currently receive paper checks.
However, certain exceptions will be made. Recipients who live in remote geographic locations lacking the infrastructure to support electronic financial transactions, those with a mental impairment that would impose a hardship, and those aged 90 or older are exempt from this change.
For those who do not fall under these exceptions and do not have a verified bank account, the Social Security Administration advises considering direct deposit or the Direct Express prepaid debit card as alternatives. If neither of these options is viable, beneficiaries must explicitly file for a waiver to avoid disruptions in their timely payment delivery.
To request a waiver, beneficiaries can contact the Waiver Line at the US Treasury Electronic Payment Solution at 1-855-290-1545 or print out a form and mail it to the listed address. It's important to note that if a waiver request is pending or denied after September 30, 2021, beneficiaries who continue to receive paper checks may experience payment delays or disruptions, even if the waiver is under review.
Exceptions to the new policy are granted "only in rare circumstances," but Commissioner Bisignano has reportedly committed to allowing exceptions for some beneficiaries. The mandate for federal payments to be made electronically didn't start with the Trump administration; it's been a matter of law for years for most payments.
Sen. Elizabeth Warren met with Social Security Commissioner Frank Bisignano on July 23 to discuss this matter. The Social Security Administration announced this change on July 15, and the Treasury Department stated that paper checks are increasingly a front door for fraud.
The switch to electronic payments is part of an effort to modernize federal benefits payments and is due to President Donald Trump's executive order. The deadline for the change is September 30, 2021. While the Social Security Administration hasn't publicly confirmed Commissioner Bisignano's commitment to allowing exceptions, it's important for beneficiaries to be aware of the upcoming changes and to take appropriate action to ensure continued receipt of their benefits.
For those who need to request a waiver, there is a section at the GoDirect site dedicated to this purpose. Beneficiaries are encouraged to act promptly to avoid potential payment disruptions.
- Given the upcoming change in September 2021, businesses involved in electronic financial transactions may see an increase in direct deposit and Direct Express prepaid debit card applications, as some beneficiaries are required to switch from paper checks.
- Despite the push for electronic payments in federal benefits, individuals aged 90 or older, those living in remote locations lacking the infrastructure for electronic financial transactions, and certain beneficiaries with mental impairments are exempt from this mandate, falling under 'rare circumstances'.
