Social Security Payments 2013: No More Paper Checks - Recipients Must Switch to Electronic Deposit by Mar. 1

The deadline for Social Security recipients to switch from paper checks to electronic payments is less than two months away.

"In an effort to cut spending, federal officials began retiring paper checks in favor of direct deposits and prepaid 'Direct Express' debit cards in May 2011," writes Melanie Hicken at CNN Money.

"Since then, the Treasury Department has required all new recipients of payments from federal benefits programs -- including Social Security, Supplemental Security Income disability, Veterans Affairs and government pension plans -- to sign up for electronic payments. It set a March 1, 2013, deadline for all other recipients to do the same."

Paper checks cost 92 cents more than direct deposits into bank accounts, a small cost that adds up to more than $1 billion over 10 years.

But with the deadline approaching, at least 5 million Americans still receive the paper checks, and it is up to them to make sure they've signed up for electronic payments so their funding isn't disrupted.

Of course, the federal government isn't going to abandon seniors and disabled people who fail to update their payment method.

"We won't interrupt their payment, but we will be communicating with them in a more personal direct way," said Walt Henderson at the Treasury Department. "After March 1, they are not in compliance."

Continuing the move away from paper, Social Security benefits can now be verified online.

People who need to prove they receive Social Security can now access their verification letters on the internet.

"The letters, which state the amount of the recipient's monthly benefit, are used to verify income when, for instance, someone is applying for a loan or for special programs, like those offering reduced rent based on income," writes Ann Carrns at the New York Times.

"Recipients can also change their address and manage electronic delivery of their monthly benefits payment on line."

Social Security recipients looking to switch to electronic payments before the Mar. 1 deadline can visit www.ssa.gov/pdd or call 1-800-772-1213.