Local seniors like direct deposit of federal payments

People receiving federal Social Security, Supplemental Security Income and Veterans Affairs payments were required by law to have signed up by March 1 for electronic direct deposit. People who don't comply can expect continued urging to participate from the U.S. Treasury.

Local seniors interviewed Wednesday said the system is easy and safer than getting paper checks.

"I highly recommend it," said Bill Ford, 82, of Cape Girardeau.

Ford doesn't have to worry about someone taking his check out of his mailbox anymore. He said sign-up was simple.

"Go into the bank and they will take care of it," Ford said.

Bill and Ruth Ann Ford chat at the Cape Girardeau Senior Center Wednesday, March 6, 2013. Both receive their Social Security checks through direct deposit. (Laura Simon)

Ford's wife, Ruth Ann, said the couple has used direct deposit for years with no problems.

Criminals aren't the only danger when using paper checks. Jim Welk, 72, of Cape Girardeau, said direct deposit keeps him from losing his money.

"It would be a real mess if I got mine in the mail," Welk said with a laugh.

Bob and Becky Andrews, 68 and 67, respectively, struggled to help Becky's father keep track of his finances as he got older. He had Alzheimer's disease and it was important to him to get his own mail, but he would forget where he put his checks, they said.

"We found them everywhere," Bob Andrews said. Some checks never were recovered, they said, even after contacting the Social Security Administration.

Champion figure skater Michele Kwan gives a presentation titled “Aspiring to Greatness: What It Takes to Win,Ó as part of the University Speakers Series Wednesday, March 6, at the Show Me Center. Kwan is the most decorated figure slater in U.S. history with two Olympic medals, five World championships and nine U.S. championsips. Kwan has a masters degree in international relations and now works for the U.S. State Department as a senior adviser for public diplomacy and public affairs. (ADAM VOGLER)

Welk, a former accountant, said people resistant to the electronic system may be reluctant to give up the proof a paper document provides. People need to move away from the idea that "if you can't see it, you don't believe it," he said.

Gene LaFont, 90, of Cape Girardeau said he'd rather get his checks in the mail because he likes the certainty of feeling them in his hand. But he said he will adjust to the new law. The most important thing is getting the monthly payment, regardless of method, he said.

"Either way, you are going to get it," LaFont said.

The Go Direct campaign was initiated by the U.S. Treasury and the Federal Reserve Banks in 2004. Once implemented in full, the program is designed to save taxpayers $1 billion in a 10-year period.

All federal benefits programs are affected, including payments from the U.S. Railroad Retirement Board, the U.S. Department of Labor and the U.S. Office of Personnel Management. The law includes people who live in nursing homes and individuals and businesses who receive a check on behalf of someone else. As of January, 93 percent of Social Security and Supplemental Security Income payments were made electronically.

"If you do not select a form of electronic payment by March 1, 2013, we will continue to pay you by check, but Treasury will contact you about complying with the requirement," the Social Security Administration's website says. Contact will not occur by phone, because of the risk of scams.

People who don't arrange direct deposit may be sent a Direct Express Debit MasterCard card, issued by Comerica Bank. There are no sign-up or monthly fees associated with the card. Users will receive one free ATM cash withdrawal per deposit if they use machines within the Direct Express surcharge-free network. Network membership is indicated by logos printed on more than 50,000 machines nationwide, according to the Direct Express website.

The Treasury Department will grant exceptions. Check recipients living in remote areas without sufficient banking infrastructure may apply for a waiver. Recipients for whom electronic payments would impose a hardship because of a "mental impairment" also may continue getting paper checks. Automatic waivers are granted to people born on or before May 1, 1921, without having to submit an application.

Whether using direct deposit or the debit card, recipients can contact their banks to ensure funds have been received, program guidelines said. Some institutions, including Comerica Bank, will send text, email or phone alerts when funds have been deposited each month.

Although the law took effect at the beginning of the month, there will be no penalties other than continued mailings from the Treasury.

"We don't have the authority to change their payment method without their permission," Walt Henderson, director of the Treasury Department's Go Direct campaign, told The New York Times in January. People may be mailed a debit card and urged to activate it, but they will not be switched automatically.

Federal tax refund payments are not affected by the program.

For more information or to request a waiver application, call 800-333-1795 or visit godirect.org.

salderman@semissourian.com

388-3646

Pertinent address:

921 N. Clark St., Cape Girardeau, Mo.