SOCIAL Security recipients are about to be hit with a huge policy change thanks to a new payment law.
The new policy aims to modernize the Social Security Administration (SSA), but there are some exceptions to the new rule.
Social Security recipients are about to be hit with a huge policy change thanks to a new payment law[/caption]
In March, President Donald Trump announced a policy change to the SSA to prevent check theft[/caption]
In March, President Donald Trump announced a policy change to the SSA to prevent check theft.
He signed an executive order to change “payments to and from America’s bank account”, deciding to make them fully digital.
This order claimed that paper checks and money orders from the nation’s general fund “are 16 times more likely to be reported lost or stolen, returned undeliverable, or altered”.
So, Trump’s mandate orders the federal government to now send out Social Security payments electronically.
It has been said that this will improve “operational efficiency” within the SSA.
The order impacts “all Federal disbursements inclusive of intragovernmental payments, benefits payments, vendor payments, and tax refunds.”
It includes any benefits sent out by the SSA or the Department of Veteran Affairs and is widespread.
Under the order, acceptable digital payments will include direct deposit, prepaid cards, digital wallets and real-time payment systems.
Paper payments are set to end for Americans on September 30, and there will be a few exceptions to this rule.
WHAT EXCEPTIONS ARE THERE?
Given that the SSA is going mostly digital, there is growing concern that recipients could struggle to use the new system.
This is especially considering the majority of SSA recipients are retirees and older people.
There are some exceptions to the new digital rule worth knowing about.
If you are without access to banking services or electronic payment systems, you may still be able to receive a non-electronic payment.
Other exceptions outlined in the order include “emergency payments where electronic disbursement would cause undue hardship.”
WHEN SOCIAL SECURITY PAYMENTS ARE MADE
Social Security payments are issued on the second, third, or fourth Wednesday of each month based on the recipient’s birthdate:
- Second Wednesday: For individuals born between the 1st and 10th of the month
- Third Wednesday: For those born between the 11th and 20th
- Fourth Wednesday: For those born between the 21st and 31st
Also, for transactions in which non-electronic payments are “necessary or desirable.”
Other situations can be considered by the Treasury Secretary.
But it might not be as much of an issue as some may think.
Data shows that 99% of Social Security recipients already receive payments via direct deposit.
HOW DO YOU RECEIVE ELECTRONIC PAYMENTS?
If you don’t already get your benefits from the SSA digitally, you’ll need to log into your account to update your Social Security direct deposit details.
Alternative methods include speaking with an SSA representative or contacting your bank.
The bank can provide your direct deposit information to Social Security on your behalf.
Also worth noting is the payment of Federal receipts is also set to be made digitasl.
This means that if you owe federal taxes, you may not be able to send it in as a check or an envelope of cash and coins.
The same could also be the case for paying back student loans.
Trump signed an executive order to change “payments to and from America’s bank account”, deciding to make them fully digital[/caption]
