Deadlines Set for Electronic Payment of Benefits

It has been talked about before, that the U.S. Treasury, in paying veterans benefits, has created programs for the facilitation of electronic payment of benefits.  The U.S. Treasury has announced that beginning this upcoming May 1st, any new applicants for veterans benefits will be required to choose a method of electronic payment.  This will also apply for Social Security Benefits.  Veterans who receive benefits currently by paper checks have until March 1, 2013 to switch to direct deposit.  After this date, no more paper checks will be printed.

The Treasury estimates that the change will save about $1 billion over the coming decade. This change is being made in readiness for the deluge of baby boomers who will retired soon.  Currently the Social Security Administration processes 10,000 new applicants each day, and its well known that the Veterans Administration is attempting to processes more new benefits claims that it can each day.


Photo thanks to debtcovered under creative common license on Flickr.

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