Final $5,108 Social Security payment before September 30 ‘paper’ rule kicks in

THE final round of Social Security payments worth up to $5,108 is going out today before a new rule takes effect in the coming days.

Americans must take action before the rule phasing out paper checks kicks in next Tuesday, September 30, or they risk disruption to their payments.

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Social Security beneficiaries are facing a key September 30 deadline before a rule change takes effect[/caption]

Millions of Americans are seeing their Social Security checks hit their bank accounts today, the fourth Wednesday of the month, due to how benefits are administered.

Those receiving their payments today were born on the 21st through the 31st of their birth month, in accordance with the SSA’s schedule.

Checks were previously sent out on September 17, the third Wednesday of the month, to Americans with birthdays on the 11th through the 20th, while those born from the 1st through the 10th got theirs on the second Wednesday, September 10.

Americans who began claiming their Social Security prior to May 1997, or those who receive both Social Security and SSI, received their benefits on the first Wednesday of the month, September 3.

The payments that went out this month to retired workers averaged $2,006 and were capped at $5,108 for those who worked at least 35 years, earned at or above the Social Security wage base in those years, and delayed claiming their benefits until they turned 70.

Next month’s checks will be distributed on October 1, 8, 15, and 22.

Before October’s benefits are sent out, Americans still receiving paper checks must take action in order to prevent any delays in payment.

The SSA is working to phase out paper checks for most beneficiaries, with the transition to fully electronic payments kicking in on September 30, per a recent blog post from the administration.

Those still receiving paper checks are being encouraged to enroll in electronic payment options like direct deposit or a prepaid debit card in order to prevent disruptions to their benefits. 

WHY THE CHANGE?

The impending switch to electronic payments follows an Executive Order from President Donald Trump to modernize government payments and end the widespread use of paper checks by the SSA.

Electronic payments are quicker, more secure, and more convenient, per the administration’s blog post.

They eliminate annoying mail delays and trips to the bank because the money is directly deposited into the recipient’s bank account or onto a prepaid debit card.

Online payments are also being emphasized due to their cost effectiveness, with electronic fund transfers costing around 15 cents versus the 50-cent charge for each paper check.

Additionally, paper checks are 16 times more likely to be stolen or lost before reaching Americans’ wallets, the SSA previously stated.

How to enroll in electronic payments

• Direct Deposit: Social Security beneficiaries can manage direct deposit through their personal my Social Security account. Supplemental Security Income recipients and international beneficiaries can call 1-800-772-1213 for help.
• Direct Express Card: For those without a bank account, enroll by calling 1-800-333-1795 or visiting www.usdirectexpress.com.

Source: SSA

WHO WILL THIS AFFECT?

Only a small fraction of Social Security beneficiaries still receive paper checks, a Social Security spokesperson previously told The U.S. Sun.

“Less than one percent of Social Security Administration beneficiaries currently receive paper checks,” they wrote.

Although a small percentage, the change will still impact hundreds of thousands of Americans, drawing widespread criticism from lawmakers.

Massachusetts Democratic Senator Elizabeth Warren, for example, spoke with Social Security Commissioner Frank Bisignano in July regarding the plan to eliminate paper checks.

“There are about 600,000 Americans who still receive their paper checks — it’s a small fraction of people who receive Social Security payments, but it’s a population that often needs checks through paper,” she criticized.

The SSA is proactively contacting these individuals to inform them of the switch-up and how they can enroll in direct deposit or receive Direct Express cards.

Although most Americans will no longer receive paper checks, there are some exceptions, such as for beneficiaries with no access to electronic banking or those experiencing extreme financial hardship.

Anyone seeking an exemption must file a waiver with the US Treasury by calling 1-877-874-6347 but should note that such waivers are rare.

In addition to the transition away from paper payments, millions of Americans are being hit with a new Social Security age rule.

Plus, read up on the three things to know about Social Security spousal benefits and the $2,009 you may be losing per month.