Social Security Is Ending Paper Checks, But There Can Be Exceptions

Paper checks from the federal government, including those for Social Security benefits, are going the way of dial-up internet, phone books, paper maps and other outdated technologies that have been replaced with newer and better alternatives.

In recent months, the Feds stopped issuing paper checks for most federal payments. Federal law now mandates that most federal benefit payments, including Social Security for retirement, Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI) must be made electronically.

The Treasury Department says that electronic transfers reduce the risk of fraud that can happen more easily with paper checks. In addition to enhanced security, the change also means beneficiaries will receive their benefits faster, according to a Treasury Department spokesperson.

However, the Social Security Administration (SSA) has backtracked some from its “no paper check” mandate.

“If you want to continue receiving a paper check, you will need to apply for a waiver in most circumstances,” notes Nash Attorney Demetra Geller. “These are only granted in rare circumstances, such as if you have a mental impairment that makes handling electronic payments difficult, and you don’t have a representative payee.

“There may also be an exception if you reside in a remote area with limited access to financial infrastructure for electronic transactions, or if you are 90 years old or older. The Chicago disability lawyers at Nash Disability Law encourage all of our clients to set up direct deposit. This is the safest and most efficient way to receive your benefits. This must be done with the Social Security Administration directly. We don’t have the ability to do it from our end.”

If you are applying for SSDI or SSI benefits, you must elect to receive your benefit payment electronically when you apply.

Social Security’s website provides these instructions on setting up direct deposit:

”There are two ways you can receive your benefits:

1. Into an existing bank account via Direct Deposit or
2. Onto a Direct Express® Debit Mastercard®

Direct Deposit is the best electronic payment option for you because it is:

• Safe– Since your money goes directly into the bank in the form of an electronic transfer, there’s no risk of a check being lost or stolen.
• Quick– It’s easy to receive your benefit by Direct Deposit. You can sign up online at Go Direct®, by calling 1-800-333-1795, in person at your bank, savings and loan or credit union, or calling Social Security. Then, just relax. Your benefit will go automatically into your account every month. And you’ll have more time to do the things you enjoy!
• Convenient– With Direct Deposit, you no longer have to stand in line to cash your check when it arrives. Your money goes directly into your account. You don’t have to leave your house in bad weather or worry if you’re on vacation or away from home. You don’t have to pay any fees to cash your checks. Your money is in your account ready to use when business opens the day you receive your check.”