Direct Deposit Now Required for Federal Benefit Payments

International Pension Fund

JOURNAL: ISSUE 1 - 2013

With the federal government now requiring direct deposit of nearly all federal benefits including Social Security and Veterans' Administration (VA) payments, International Pension Fund (IPF) retirees are ahead of the curve when it comes to direct deposit of their pension checks. Of the current 24,816 IPF pensioners, 22,717 or 91.5% receive their IPF benefits electronically. Says IPF Executive Director David Stupar, "Most IPF pensioners have embraced the benefits of direct deposit. Electronic payments offer a safer, more convenient and cost-effective way to transmit benefits. Pensioners don't have to go to a bank or other financial institution to cash or deposit their IPF benefit checks. Stupar adds, "And while the Fund strongly urges all pensioners and beneficiaries to utilize direct deposit of benefits, we continue to make paper checks available at this time." 

Like it or not, retirees who began to receive Social Security and/or other federal benefits on or after March 1, 2013 are required to receive payments electronically. Those receiving federal benefits prior to March 1, 2013 have either already been instructed by Social Security – or soon will be – to sign up for direct deposit. Only those individuals born before May 1, 1921 or those eligible for geographic or mental impairment waivers will be able to continue to receive paper checks. 

Under the government's "Go Direct" program, Social Security, VA or other federal benefit recipients can choose between having a direct deposit made to a bank or credit union account or having the benefit transferred to a Direct Express® Debit MasterCard® card. 

To learn more about the Go Direct program, including waivers, visit www.godirect.org/, ask your bank or credit union representative, or call the U.S. Treasury Electronic Payment Solution Center at 800-333-1795, Monday through Friday from 8 a.m. to 8 p.m. ET.