Treasury launches initiative to go paperless with federal benefits

The Treasury Department is kicking off an initiative to move recipients of federal benefits away from paper payments to direct deposit by March 2013. New enrollees receiving a range of benefits administered by the Social Security Administration, Veterans Affairs Department, Railroad Retirement Board and Office of Personnel Management will be required to receive payments beginning March 1, 2011, either through direct deposit into a bank account or through a Treasury-issued debit card. All existing check recipients will have to enroll to receive electronic payments by March 1, 2013. Treasury announced the initiative in April, saying that moving all recipients of these benefits to electronic payments would save more than $300 million in the first five years. Currently, 85 percent of federal benefit recipients receive their payments electronically. On Monday, Office of Management and Budget Director Peter R. Orszag said the shift to electronic payments will continue to save $120 million each year after the first five, and he painted the initiative as part of the administration's efforts to reduce wasteful spending in the federal government.