WASHINGTON D.C. (KOAA) — A major change is coming to how the U.S. Treasury Department distributes federal benefits. Beginning Oct. 1, the government will no longer issue paper checks for Social Security payments and tax refunds, requiring nearly all recipients to switch to electronic payments.
The Treasury said the move is aimed at cutting costs, improving efficiency and reducing the risk of fraud. Currently, fewer than 1% of Social Security recipients still receive paper checks. Those individuals will need to enroll in direct deposit or use a prepaid debit card to continue receiving payments.
There will be limited exceptions. People over the age of 90 and individuals with certain disabilities may still qualify to receive paper checks.
The government has mailed notices with instructions to affected recipients. The notices include flyers to guide people through signing up for electronic payments.
Bree Shellito, director of financial well-being for ENT Credit Union, said the change should benefit most recipients.
“There will be some accessibility and having it available right in their bank right away and not needing to go and take that paper check anywhere, not deposit it, and then also it'll kind of relieve some of the transportation needs for folks,” Shellito said. “So I think overall, this could be a great thing.”
The Treasury encourages anyone who still receives paper checks to watch for mailed notices or visit its website for guidance. Local banks can also provide assistance with the transition.
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