The U.S. Department of the Treasury issued a final rule to extend the safety and convenience of electronic payments to all Americans receiving federal benefit and non-tax payments. Anyone applying for benefits on or after May 1, 2011, will receive their payments electronically, while those already receiving paper checks will need to switch to direct deposit by March 1, 2013. The Treasury Department’s Go Direct® public education campaign will provide information to Americans about the change to how federal benefit payments are being delivered and make it easy for check recipients to switch online or by calling a toll-free helpline.

Eight in 10 federal benefit recipients already use direct deposit, and now millions of additional retirees, veterans and other Americans will also receive their money in the safest, most reliable way – electronically," said Treasury Fiscal Assistant Secretary Richard L. Gregg. "This important change will provide significant savings to American taxpayers who will no longer incur the annual $120 million price tag associated with paper checks and will save Social Security $1 billion over the next 10 years."

The Treasury is launching a public education campaign to inform Americans about the rule change and to help them understand what they need to do to get their payments electronically, whether they already receive payments by check or will be applying for federal benefits for the first time soon. Current check recipients will receive information enclosed with their payments, and the national campaign will also include public service announcements, a newly redesigned website at www.GoDirect.org, ongoing financial literacy programming and partnerships with hundreds of national, regional and local organizations.

People newly applying for federal benefits on or after May 1, 2011, must choose an electronic payment option at the time they sign up for their benefits. People currently receiving benefit payments by paper check must switch to electronic payments before the March 1, 2013 deadline.