Social Security officially ends longtime service in October
The Social Security Administration made a major change this month to how people receive their checks
The Social Security Administration made a significant shift in its payment delivery method this month.
The organization has stopped issuing paper checks on Sept. 30 and will only provide electronic payments. This change will affect how beneficiaries receive their checks going forward.
The move is part of a larger government initiative to modernize its systems and improve its services. Approximately 73 million people who receive Social Security benefits could be impacted by this change. The organization has already announced that it's serving customers faster than ever before, and it aims to reduce wait times even further with this new change.
How many people received their Social Security benefits via paper check?
According to a blog post by the organization, less than 1% of beneficiaries were receiving physical payments at the time of the change. The majority of recipients already receive their payments electronically.
The SSA first announced this switch back in July, urging those who haven't yet enrolled in direct deposit to do so before the deadline. Those who hadn't done so by the time of the deadline may have had a lapse in benefits.
Why is Social Security offering electronic payments only?
In a blog post, the organization explained that electronic payments offer several benefits for both SSA employees and recipients. It said:
- Electronic Funds Transfers (EFTs) are processed more quickly than paper checks so recipients won’t face delays
- EFTs are cheaper, as issuing a paper check costs about 50 cents and EFT costs less than 15 cents, according to the U.S. Department of the Treasury
- Paper checks are 16 times more likely to be lost or stolen compared to electronic payments, increasing the risk of fraud. Electronic payments provide a safer, more secure way to receive benefits.
Electronic payment options
There are two methods for receiving electronic payments. One can either opt for direct deposit with their bank, where the payments are directly transferred into their checking or savings accounts.
Alternatively, there's the Direct Express Card, a prepaid debit card specifically designed for federal benefit payments.
When will I receive my October Social Security payment?
The distribution of payments is based on the recipient's birthday and they are sent out three times a month on Wednesdays.
For those born between the 1st and 10th of the month, the first round of checks came on Oct. 8.
If your birthday falls between the 11th and 20th of the month, you should have received your check on Oct. 15. And those with birthdays between the 21st and 31st of the month will receive their payment on Oct. 22.
However, if you started collecting retirement, spousal or survivor benefits before May 1997, or if you receive Supplemental Security Income (SSI), your distribution schedule is different. If you fall into this category, you should have received a check on Oct. 5.
SSI payments will be distributed twice in October. The first payment was on Oct. 1, and the second will follow on Oct. 31.