As a result, any individual applying for Social Security checks and other benefits on or after May 1, 2011 is required to receive their payment electronically. According to the Treasury, individuals who began receiving Social Security checks prior May of 2011 will have to sign up for the new electronic payments by March 1, 2013 (Murse, 2012). There are however special circumstances. The few exceptions to the new transition are elderly seniors born before March 1, 1923, individuals who are mentally impaired, and those who live in remote rural areas (U.S. 2011). The roots of this transition dates back to the 1996 Debt Collection Improvement Act (Clark, 2010). The act is designed to work towards electronic delivery of all government checks. However, the act did not include refunds from the Internal Revenue Service, including Social Security checks.
Although the announcement of this change is less than a year old, individuals have already been adopting the electronic direct deposit. Studies show that 93% of individuals already received their federal benefits via direct deposit as of October 2012 (Savy, 2012).
Clark, C. S. (2010, December 21). Paper Social Security checks will become obsolete in May - Oversight - GovExec.com. Government News, Research and Events for Federal Employees - GovExec.com. Retrieved February 10, 2012, from http://www.govexec.com/oversight/2010/12/paper-social-security-checks-will-become-obsolete-in-may/32978/
Hicken, M. (2013, January 1). No paper, no plastic: Social Security embraces direct deposit | Columbia MO Social Security Disability Attorneys Blog. Columbia Social Security Disability Attorneys | Missouri Workers' Compensation Lawyers | Kirksville Workplace Injury. Retrieved February 10, 2012, from http://www.harlan-still.com/blog/2013/01/no-paper-no-plastic-social-security-embraces-direct-deposit.shtml