According to Senator Elizabeth Warren, the Social Security Administration continues to send several paper checks to beneficiaries of the retirement program, overturning a recently announced plan to move all Social Security payments to electronic deposits starting in the fall.
Warren (D-Mass.) said on Wednesday, July 23rd that SSA Commissioner Frank Vignano agreed to continue issuing paper checks for those who otherwise could not receive payments.
SSA spokespersons will check with CBS MoneyWatch and Finance Outlet Kiplinger and continue to issue paper checks to certain beneficiaries, including those who have retired or received disability benefits. The SSA highlighted the benefits of using electronic transfers, adding that it encourages recipients to stay away from paper checks.
The SSA did not immediately respond to a request for comment on USA Today.
The agency first announced plans to move away from paper checks on July 14th as part of its efforts to modernize the system and improve service delivery.
This is what you need to know.
How many beneficiaries will receive a paper check?
The SSA said that less than 1% of beneficiaries have not yet switched to electronic payment methods and have not received paper checks. But with over 74 million people receiving Social Security, Supplementary Security Income (SSI), or both, dropping a paper check could affect hundreds of thousands of Americans.
According to the Federal Deposit Insurance Corporation, approximately 4.2% of US households lacked a bank or credit union account in 2023. Bankrate reported that one of the reasons some people are “immersed in the bank” is because they believe they don’t earn enough money to open an account. Bankers also cited concerns about bank fees, privacy or general mistrust.
How to switch to electronic payments
Social Security beneficiaries can switch from paper checks to electronic payments online through my Social Security account.
Our agency has technicians who need technical support from 7:30am to 4pm Monday through Friday.
Why is the Social Security Administration promoting electronic payments?
The SSA said the switch from paper checks to electronic payments will minimize payment delays and reduce the risk of fraud.
The SSA cited the US Treasury Department, saying that electronic payments cost around 35 cents less than paper checks, essentially saving the federal government millions of dollars a year.
The agency said that a transition from paper checking provides a safer and safer way to provide a safer and safer way, with paper checking being 16 times more likely to be lost or stolen.
tailoring:
