Social Security checks will be cancelled, and all electronic payments will be made starting next year.

Social Security checks will be canceled, and all electronic payments will be made starting next year. The Alberta Times Starting next year, millions of people who receive Social Security and other government benefits will not...

Alberta Times

Starting next year, millions of people who receive Social Security and other government benefits will no longer receive government checks in their mailboxes. The federal government now sends 73 million checks each month, but this practice of issuing paper checks will be phased out. The government will ask people to take benefits electronically, either through direct bank deposits or by giving those without bank accounts a reloadable debit card. The change will affect those who receive Social Security, veterans' benefits, railroad employee pensions and federal disability benefits. But tax refunds are not included in this. However, the IRS encourages taxpayers to obtain their refunds electronically. The Treasury Department revealed that about 90% of people receiving federal benefits already receive their benefits electronically. New welfare recipients were required to receive their benefits electronically starting last year, but there were some exceptions. However, these people will need to switch to receiving benefits electronically in March 2013. Henderson, who heads the Treasury's electronic funds transfer unit, said electronic payments are more secure and efficient than paper checks. In 2010, more than 540,000 welfare checks were reported lost or stolen. This transition to electronic payments will save the government approximately $120 million annually. The Social Security Administration will save more than $1 billion over the next decade. Seniors advocacy groups say they understand the government's desire to cut spending and take advantage of new technology. The food stamp program switched from paper food stamps to debit card payments in 2004. But advocacy groups are also concerned about the inconvenience the switch could bring to older retirees, who may be unfamiliar with electronic payments.