Federal Benefits Payments to be Paperless by 2013

In an attempt to reduce costs and streamline the payment process for federal benefits, the Treasury Department will begin issuing most payments by direct deposit by 2013. In order to cut back on the cost of paper and postage, nearly 136 million payments that were formerly issued by paper check will be delivered by direct deposit or through a Direct Express Debit MasterCard program (if the individuals do not provide a bank account for direct deposit).

Individuals who request payment from the Social Security Administration, Office of Personnel Management, Railroad Retirement Board, and the Department of Veterans Affairs after March 1, 2011 will receive payments by direct deposit, and once the agencies alert other beneficiaries to the changes, the new payment system should go into effect on March 1, 2013.

Taxpayers will save nearly $303 million in the first five years after the cost-cutting measures are put into effect. Experts believe the paperless system will be more secure and will provide faster payments to beneficiaries.

Original article.