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Albeit the advancements in technology, the government still relies on direct mail when sending checks to their beneficiaries. This process is tied up with how most banks can release funds to its their beneficiaries. There are a few downsides with this procedure which include lost checks and deferred payment due to courier timelines.
More than these reasons, the government has a better reason for altering the way funds are distributed to its beneficiaries. The US government decided to send checks electronically. This will include the beneficiaries who previously applied for Social Security and other institutions by the first of May next year will be able to collect their checks electronically, directly deposited into their bank or federal credit union. The statement was given by the US Treasury Department last Tuesday.
Beneficiaries who have already received their checks will need to find a way to receive their checks electronically by the first of March in 2013. Officials from the Treasury Department said that there are already eight out of ten benefit recipients are already using electronic sending of benefits. Other beneficiaries will start receiving their money through a safe and reliable method using electronic funds transfer.
With this process completely implemented, government beneficiaries will start enjoying the benefits of timely funds transfer. Simply because it will be more convenient to receive checks at once into your account rather than through mail.
Perhaps most importantly, this initiative will also help the government save a lot of money which will in turn is helpful to taxpayers. They will no longer be obliged to pay for the $120 million annual budget established for paper checks. It will also save one billion dollars for Social Security for 10 years.
Of course, because this new procedure, a new challenge is presented. Considering that most of the beneficiaries are elderly, the issue of misunderstanding the process is expected. This problem has been anticipated by the government so an education campaign is scheduled to be launched to facilitate help to beneficiaries making the transition more straightforward.
One of the buying points that the national government presented when promoting the new practice is focused on reiterating the switch to paperless checks will be advantageous to its beneficiaries. Officials said that once the switch is on full blast, it will eliminate concerns of missed checks thus providing timely access to the benefits received.
The new process includes Social Security, Veterans Affairs, Office of the Personnel Management, Railroad Retirement and Supplemental Security Income. From these agencies, several beneficiaries await the full implementation of the said process. Hopes are high that it will be a straightforward implementation.
Paperless environments have been implemented at most banks and your local federal credit union for some time. It has been an initiative that promotes economizing on resources, a major initiative that focuses on using up resources on other aspects of operation. These initiatives have helped businesses provide better services and benefits to their employees. Clearly, these advantages have been recognized by the government.