Social Security is closing the books on the era of paper checks.
Starting in May, anyone applying for Social Security benefits will only have the option to receive them electronically. The 10 million people who still receive Social Security checks by mail -- about one in every seven recipients -- still have nearly two years to make the switch to direct deposit.
Here are some details behind the move:
TIMING
The U.S. Department of the Treasury will start the full changeover effective May 1. Social Security recipients currently getting checks will need to switch to direct deposit by March 1, 2013. Further details are at www.ssa.gov , where you can also watch videos publicizing the switch that feature actors George Takei and Patty Duke. Anyone needing to make the switch can do so at www.godirect.org .
REASONING
It's safer and more reliable to do receive payments this way. "You don't have to worry about your check being lost or stolen and your money is available immediately on your payment date," says Michael Astrue, the Social Security commissioner. "There is no need to wait for the mail to arrive."
SAVINGS
The government ultimately will save $120 million a year by switching from paper checks to electronic payments, for a total of $1 billion saved over the next 10 years. Environmental savings also will result, with the move saving 12 million pounds of paper in the first five years alone.
Copyright 2011 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
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