[infoshare] Check NOT in Mail: Govt. to Use Direct Deposit

From: "Luis Guerra" <free_speech@xxxxxxxxxxx>
To: "InfoShare" <InfoShare@xxxxxxxxxxxxx>
Date: Sun, 13 Jun 2010 22:59:54 -0400
Check NOT in Mail: Govt. to Use Direct Deposit

ABC News
The Check is Not in the Mail: Obama Administration to Start Direct Deposit
Exclusive: White House Orders Government to Stop Mailing Paper Checks, 
Switch to Electronic Transfers
By MATTHEW JAFFE

June 13, 2010

What's better than getting a check from the government? Not much, except 
maybe getting that money via direct deposit.

On Monday the Obama administration will announce that all payments from the 
government will now be made to consumers electronically,
ABC News
 has learned.

Americans receiving payments for
Social Security,
unemployment insurance, veterans benefits, IRS tax refunds, railroad 
retirement, and government benefits will now find the money automatically 
deposited
into their personal bank accounts. Americans without bank accounts can get 
paid using the Treasury Department's Direct Express Debit MasterCard 
program.


Why the shift to direct deposits? Two reasons: one, it will be easier and 
faster for consumers to get paid and, two, it will save taxpayers money  an 
estimated
$303 million over the first five years and about $120 million each year 
after that.

For instance, despite repeated attempts to get recipients to convert to 
electronic payments, the Treasury Department still mails out more than 136 
million
benefit checks each year. Now, as part of President Obama's effort to 
eliminate waste and modernize government for taxpayers, that will change 
with Monday's
announcement of a complete shift to direct deposits.

"[The] announcement is a win-win for the American public because it makes 
government more convenient and cost-effective while generating significant 
savings
for the country," said Office of Management & Budget director Peter Orszag. 
"This is precisely the type of smart, streamlined improvement that this 
administration
is committed to making across government to boost efficiency and modernize 
how we do business."

While savings of a few hundred million dollars a year might sound 
impressive, though, remember that just last month the government ran up $135 
billion in
red ink.

The administration will make the direct deposit announcement on Monday when 
Treasury publishes a notice of proposed rulemaking in the Federal Register 
to
begin a 60-day period of public comment. Once the final rule is published, 
the administration will roll out the changes with a public education 
campaign.


The new rule will primarily take effect in March 2011, with a few exceptions 
that will not take effect until March 2013.

To some extent, the shift to direct deposits began years ago. 85 percent of 
federal benefit recipients already receive their payments electronically. 
One
million Americans are now using the Direct Express payment system, launched 
in the summer of 2008.

Copyright © 2010 ABC News Internet Ventures
http://abcnews.go.com/print?id=10894316
[infoshare] Check NOT in Mail: Govt. to Use Direct Deposit

Other related posts:
