• 11
  • May
    2011

Whether they are in North Carolina or elsewhere in the United States, all people who receive Social Security payments will soon have the funds deposited electronically. This step toward convenience for recipients and security for personal information is part of an overall plan for the modernization of Social Security procedures.

Most people who receive Social Security payments already do so electronically; indeed, eight out of 10 people who receive monthly benefits have chosen electronic delivery. People who choose to switch now will not have their benefits schedule affected. All new applicants must receive electronic payments from the start.

Social Security recipients who still receive paper checks must switch by March 1, 2013. They will need to provide bank account information to their federal benefits providers. If they choose not to do so, the benefits will be paid in the form of a prepaid debit card.

The programs that are included in the new electronic payment program are Social Security; Supplemental Security Income (SSI); the Railroad Retirement Board; the Office of Personnel Management; the Department of Labor (for black lung); and Veterans Affairs.

Other Changes on the Horizon for Social Security

The Social Security Administration has also implemented another money-saving, "green" change. The SSA has suspended mailing the statements that estimate a person's Social Security benefits based on earnings. Next year, the SSA will send the statements to all people 60 years old and older. Younger people who want to see their statements now must request a copy.

While these adjustments may seem small, more significant changes are possible. Debate on Social Security reform continues in Washington, D.C. Three senators recently proposed raising the age at which Americans would be eligible to collect Social Security retirement benefits, in addition to reducing benefits for the wealthy. The proposal, like most others concerning Social Security benefits, is being hotly debated.

For now, people who receive Social Security benefits in the form of checks may wish to change the mode to electronic payments. If they choose not to do so, the payments will become electronic in a little less than two years.