The Social Security Administration (SSA) has reversed its plan to stop issuing paper checks after September 30, citing concerns from Senator Elizabeth Warren and the need for vulnerable populations to continue receiving payments. The agency will continue to issue paper checks to Americans who have no other means of getting their benefits, particularly those with disabilities and retirement benefits.
The decision comes as a grim forecast warns that Social Security’s retirement fund is set to run short in just seven years, potentially leading to reduced benefits for millions of recipients. The SSA estimates that only 1% of total payments are currently made via paper checks, which cost about 50 cents each, compared to 15 cents for direct deposits.
Despite the reversal, the agency urges people to switch to direct deposit if possible. For those who cannot, they can register for a Direct Express payment debit card or an approved pre-paid debit card to receive their benefits. The SSA’s goal is to reduce paper check volume while ensuring that all beneficiaries receive their payments.
Senator Warren met with Social Security Commissioner Frank Bisignano on Wednesday and expressed concerns about the plan to discontinue paper checks, citing the need to support vulnerable populations who rely on these payments. Her efforts led to a commitment from the commissioner that “no one would be left behind.”
Source: https://www.dailymail.co.uk/yourmoney/article-14941357/social-security-reverses-controversial-policy-checks.html