"Direct deposit is a secure and convenient method for people to receive their benefits," the spokesperson said. She also said paper checks are more likely to be lost or stolen than electronic deposits.Ī spokesperson for the Social Security Administration told PolitiFact that the push to switch to primarily direct deposit was not at all related to concerns about the security of mailing checks via the Postal Service. Testifying before a Senate committee in 2013, Theresa Gruber, assistant deputy commissioner for operations at the Social Security Administration, pointed out that electronic Social Security payments do not face the same disruption that mailed checks face from natural disasters such as hurricanes. "There is no need to wait for the mail to arrive." "You don't have to worry about your check being lost or stolen, and your money is available immediately on your payment date," Astrue said. In a 2011 Social Security Administration press release, Michael Astrue, commissioner of Social Security, said getting benefit payments by direct deposit or on a debit card was safe and reliable. News coverage of the new rule focused on the fact that electronic deposits would save taxpayer money, reduce the Social Security Administration’s environmental impact and provide increased security for the payments. "By moving to all-electronic payments, Treasury will save hundreds of millions of dollars and substantially reduce our environmental impact, making this a win-win for all Americans," then-Treasury Secretary Tim Geithner said in a statement. The change was expected to save "more than $400 million and 12 million pounds of paper in the first five years alone," according to the Treasury Department press release. In April 2010 - just a few days before Earth Day - the Treasury Department announced a rule that would increase the number of electronic Social Security transactions and decrease the number of mailed checks by 2013. Until 2010, about 16% were done by mailed checks and 84% were done electronically through direct deposit or through debit cards that could be automatically replenished. Treasury sends payments for Social Security and Supplemental Security Income benefits to 69 million recipients around the country.
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