For individuals who file for benefits on or after May 1, 2011 and do not allege one
of the exemptions to the electronic payment requirement, take the following actions:
Advise the individual of the electronic payment (direct deposit) requirement.
Inform the individual that he or she must receive payment by direct deposit, and discuss
its advantages as stated in GN 02402.005G.
If the individual does not have a bank account, discuss the Direct Express debit card
and its advantages as stated in GN 02402.007. NOTE: Do not use a protective filing or development date solely to exempt a claim from
the electronic payment requirement. Claims filed before May 1, 2011 are not subject
to the electronic payment requirement, regardless of when we adjudicate the claim.
If the individual does not agree to electronic payment, tell the individual, “We will
temporarily pay you by check and Treasury will contact you at a later time to discuss
how you will receive your benefit payments in the future.”
As of March 1, 2013, Title II beneficiaries and Title XVI recipients must select a
form of electronic payment or apply for exemption. Treasury is responsible for reviewing
the request and making a determination. Treasury will contact the individuals directly
once they make a determination.
To maintain good public relations field offices (FOs) must:
Maintain lists of financial institutions (FIs) in their area that offer low cost banking
May prefer to maintain a list of all FIs in the area, with the type of accounts they
provide, and the approximate cost of the accounts; and
Update the lists every two years to ensure their accuracy.