Federal benefit payments to be electronic only

Press Release
For Immediate Release

May 9, 2011/Contact: Ken Gordon: kgordon@nevaaa.org
Area Agency on Aging for Northeastern Vermont
481 Summer Street, St. Johnsbury, Vermont 05819
Telephone: 800-642-5119/802-748-5182

Federal Benefit Payments are Going All-Electronic

The U.S. Department of the Treasury now requires all federal benefit and nontax payments to be paid electronically. People applying for Social Security, Veterans benefits or other federal benefits on or after May 1, 2011, will receive their payments electronically starting with their first payment. People currently receiving federal benefit checks will need to switch to an electronic payment option by March 1, 2013.

Those who do not choose an electronic payment option at the time they apply for federal benefits or those who do not switch by the deadline will receive their benefit payments via the Direct Express® Debit MasterCard® card, so they will not experience any interruption in payment. People who are already receiving benefit payments electronically do not need to take action. They will continue to receive their payment as usual on the payment day.

Having federal benefits paid electronically by direct deposit into the bank or credit union account of your choice or into a Direct Express® card account is safer, faster and more reliable than receiving paper benefit checks. In 2010, more than 540,000 Treasury-issued checks were reported lost or stolen, and had to be reissued.

With direct deposit, the Treasury Department sends an electronic message to your bank or credit union account on your usual payment day with the exact amount of your benefit payment from Social Security, VA or other federal agency. You don’t have to worry about your money being stolen out of your mailbox and there’s no need to make a trip to cash or deposit a check. Plus, it’s better for the environment and saves taxpayer dollars.

Don’t Wait – Sign Up Today!/Spread the Word that Signing up for Electronic Payments is Easy!
• Have a bank or credit union account? Sign up for direct deposit. Your money goes straight into your checking or savings account each month, so you can count on it being there on time, every time. It’s easy. Visit your local financial institution, sign up online at www.GoDirect.org, or call the U.S. Treasury Processing Center at (800) 333-1795 begin_of_the_skype_highlighting              (800) 333-1795      end_of_the_skype_highlighting.

• Prefer a prepaid debit card? The Direct Express® card is a Treasury-recommended prepaid debit card that provides another safe, low-cost way to get your federal benefit payments. Your money will be posted to your FDIC-insured Direct Express® card account each month, so you can access your money immediately on payment day. There are no sign-up fees, monthly fees or overdraft charges. Some fees for optional services may apply. No bank account or credit check is required.

To get your benefit payments through direct deposit, here’s what you’ll need to have when you sign up:
• The type of account you have (checking or savings)
• Your financial institution’s nine-digit routing transit number that often comes before your account number at the bottom of your checks*
• Your checking or savings account number*
*This information is often on your personal checks.

If you prefer the Direct Express® card, you can:
• Notify the federal agency, such as the Social Security Administration or Veterans Affairs, of your choice to receive your benefit payments on the card.
• Visit www.GoDirect.org or call (800) 333-1795.

Once approved, you’ll receive your card in the mail along with a cardholder information packet explaining how to use the card.

For more information, visit www.GoDirect.org or call the Area Agency on Aging at 748-5182, 334-2190 or via the Senior HelpLine at 1-800-642-5119.