Social Security retreats from plan to eliminate paper checks for beneficiaries
MoneyWatch Social Security retreats from plan to eliminate paper checks for beneficiaries moneywatch By Edited By Updated on: July 24, 2025 / 2:00 PM EDT / CBS News The Social Security Administration said it will continue issuing paper checks to the retirement program's beneficiaries, backing away from a previously announced plan to switch all payments to electronic deposits after Sept. 30.
2025-07-24 18:46:33 - VI News Staff
On Wednesday, the Social Security Administration told CBS MoneyWatch it would continue issuing paper checks for beneficiaries, including recipients of retirement and disability benefits, who have no other means of getting payments. But the program will also emphasize the advantages of electronic transfers to its roughly 70 million beneficiaries in an effort to encourage check recipients to switch, a Social Security spokesperson added.
The about-face comes after the agency said on July 14 that it would phase out paper checks beginning in October, citing the advantages of electronic deposits including faster payment processing and enhanced security. Eliminating paper also saves the federal government money, with checks costing 50 cents each, compared with 15 cents for an electronic funds transfer, the agency said at the time.
The reversal of the policy to eliminate paper checks comes after Senator Elizabeth Warren, a Democrat from Massachusetts, met with Social Security Commissioner Frank Bisignano on Wednesday morning and asked about the plan to discontinue paper checks, along with other changes at the agency.