Beginning on March 1, 2011, Social Security checks will no longer be mailed out to new recipients of disability benefits.
The Treasury Department recently announced that all United States Government benefits payments will be made electronically to beneficiaries via direct deposit or onto a special debit card. Social Security Disability and Supplemental Security Income claims allowed on or after March 1, 2011 will be affected. Those whose claims were allowed before that date will have until March 1, 2013 to make the conversion if they are receiving their checks in the mail.
For those who do not have a bank account into which the benefits can be deposited, the Treasury Department has a Direct Express debit card to which payments will be made. That same card also accepts payments of Veterans benefits, Unemployment benefits, and Railroad Retirement benefits.
The move to paperless transactions is hoped to improve government efficiency and reduce costs normally associated with manually sending those checks in the mail. An estimated $48 million is expected to be saved annually on postage alone, and it will reduce or eliminate the problems associated with lost checks and fraud.