Posted 1 year ago on April 15, 2012, 8:54 a.m. EST by infonomics
This content is user submitted and not an official statement
From Huffington Post:
Starting next year, the check will no longer be in the mail for millions of people who receive Social Security and other government benefits.
The federal government, which issues 73 million payments a month, is phasing out paper checks for all benefit programs, requiring people to get payments electronically, either through direct deposit or a debit card for those without a bank account.
The changes will affect people who get Social Security, veterans' benefits, railroad pensions and federal disability payments. Tax refunds are exempt, but the Internal Revenue Service encourages taxpayers to get refunds electronically by processing those refunds faster than paper checks.
About 90 percent of people who receive federal benefits already get their payments electronically, the Treasury Department says. New beneficiaries were required to get payments electronically starting last year, and with a few exceptions, the rest will have to make the switch by March 2013.
Why is direct deposit considered progress?
1 - Seniors get their funds faster. Also, an additional benefit is realized for the nonambulatory.
2 - 73 million mail pieces per month are removed from the pony express thereby reducing unnecessary mail cost (gas, vehicle maintenance, sorting labor, delivery labor, paper cost)