In a recent development, it has been announced that from next year onwards, social security check and other federal benefits will no longer be available in your mail. It will be either directly deposited or a debit card will be issued for those people who don’t have a bank account.
Who will be affected due to this change?
The Federal Government issues around $73 millions in payments as Social Security, disability payments, rail road benefits, veteran benefit, etc. So, those who receive any of these federal benefits will be affected by this new policy change. It can create major problems for the frail elderly people who are living all by themselves but are not comfortable in using the electronic method. The tax refunds are still exempt but IRS also encourages taxpayers to get the refunds electronically.
However, it is true that now around 90% people are there who receive federal benefits electronically. The benefit of this process is that it helps in getting refunds comparative quite faster than paper checks. Moreover, electronic payment is a far safer option compared to a paper check.
What's the side effect of this change?
This action from the end of the Government will have a sever side effect. This will result in a less business for the U.S. Postal Service. This agency is already facing budget problems with the rise of email and electronic bill paying.