That’s right, no more paper checks.
The U.S. Department of the Treasury issued a final rule that will phase out paper checks for federal benefits by March 1, 2013.
What this now means; any veteran receiving benefits from the Department of Veteran Affairs (VA) will have until March 1, 2013 to sign up for electronic payment of their benefits.
Veterans are urged to sign up for direct deposit before the deadline because on March 1, 2013, the VA will stop issuing paper checks and those Veterans not having electronic payment arrangements for their benefits will receive their funds via a pre-paid debit card––called the Direct Express Card. This card will be issued by the Commerica Bank, U. S. Treasury’s financial agent.
Another new ruling that will affect individuals receiving VA compensation or pension for the first time went into effect May 1, 2011. If a Veteran files a VA claim for compensation/pension after this date, they will automatically begin receiving their benefits electronically.
The phasing out of paper checks issued by the Treasury Department will not only affect VA benefits, but all federally issued benefits, such as, Social Security, Supplemental Security Income, Railroad Retirement Board, and Office of Personnel Management.
For more information about the federal government’s switch to direct deposit, visit www.GoDirect.org or call 1-800-333-1795.
You can also contact one of our skilled Veteran Service Officers (VSO) at 1-800-404-2898.
VetsFirst strongly urges federal benefit recipients to switch to electronic payments now, rather than waiting until the final deadline to reduce the risk of lost or stolen checks.
Christine Golden
National Service Officer
VetsFirst