Social Security System Switches to Electronic Payment System
March 4, 2013
The Social Security Administration recently announced that beginning on March 1, the agency would stop sending paper checks to Social Security Disability and retirement beneficiaries. The announcement explained the agency would be switching to only issuing electronic deposits to bank accounts held by recipients.
Despite the announcement, a press release from the U.S. Department of Treasure claimed there were still roughly 56,000 Arkansas residents who were scheduled to receive a paper check. Experts believe the failure of many to make the switch comes from a hesitation to change from what has become a normal routine for many recipients.
The agency explains there are several benefits to having Social Security benefits processed electronically. The biggest reason for the switch seems to be cost-cutting. Electronic deposits are touted as a way for the country to potentially save $1 billion over the next decade by eliminating printing and mailing costs associated with paper checks.
Another major benefit for recipients is a more secure way of receiving payments. Since benefits are being directly routed to an individual’s bank account, there is less risk of stolen or lost checks.
The Little Rock Personal Injury Lawyers with Rainwater, Holt & Sexton Injury Lawyers applaud the efforts to improve the Social Security system. The firm would also encourage any Arkansas residents who have not made the necessary changes to do so immediately.