The Social Safety Administration mentioned it can proceed issuing paper checks to the retirement program’s beneficiaries, backing away from a beforehand introduced plan to change all funds to digital deposits after Sept. 30. 

On Wednesday, the Social Safety Administration advised CBS MoneyWatch it could proceed issuing paper checks for beneficiaries who haven’t any different technique of receiving funds. However this system can even emphasize some great benefits of digital transfers to its roughly 70 million beneficiaries in an effort to encourage examine recipients to change, a Social Safety spokesperson added.

The about-face comes after the company mentioned on July 14 that it could section out paper checks starting in October, citing some great benefits of digital deposits together with quicker cost processing and enhanced safety. Eliminating paper additionally saves the federal authorities cash, with checks costing 50 cents every, in contrast with 15 cents for an digital funds switch, the company mentioned on the time.

The reversal of the coverage to get rid of paper checks comes after Senator Elizabeth Warren, a Democrat from Massachusetts, met with Social Safety Commissioner Frank Bisignano on Wednesday morning and requested in regards to the plan to discontinue paper checks, together with different adjustments on the company. 

“There are about 600,000 People who nonetheless obtain their paper checks — it is a small fraction of people that obtain Social Safety funds, nevertheless it’s a inhabitants that usually wants checks by way of paper” versus digital deposit, Warren mentioned in a press name to debate her assembly with Bisignano. 

She added that Bisignano “made a dedication that nobody might be left behind and that individuals who have entry to paper checks will get entry to paper checks.”

Tens of millions of individuals within the U.S. are “unbanked,” which means they lack conventional financial institution accounts, actually because they imagine they do not earn sufficient to qualify for an account or are fearful about prices or different points, in accordance with Bankrate. Sometimes, these individuals depend on check-cashing providers or different non-bank monetary corporations, equivalent to PayPal or Venmo, slightly than banks.

About one out of each 5 households headed by somebody over the age of 65 is unbanked or underbanked, in accordance with the AARP. People who find themselves underbanked might have a checking account however nonetheless primarily depend on different banking providers, like examine cashing institutions, to deal with their cash.

Concentrate on customer support

Warren additionally mentioned she addressed different points with Bisignano, together with issues {that a} main workforce discount on the Social Safety Administration this yr may have an effect on customer support. 

The senator mentioned Bisignano agreed to her request that the company’s inspector basic conduct an impartial audit to evaluate the state of customer support at SSA, equivalent to name wait instances and what number of Social Safety recipients are capable of attain a human worker once they name for assist.

“Extra correct information is totally important to oversight, to holding the Social Safety Administration accountable to the job they’re required to do,” Warren mentioned. 

On Wednesday, the Social Safety Administration mentioned customer support is enhancing, noting that the company has lowered its telephone response time to a mean of 18 minutes in 2025, down from half-hour in 2024. 

“Commissioner Bisignano had a productive assembly with Senator Warren the place he offered improved customer support metrics which might be at the moment being realized on the telephone, in subject places of work and on-line,” a Social Safety Administration spokesperson advised CBS MoneyWatch. “Senator Warren reacted positively to most of the indicators, particularly decrease telephone and subject workplace wait instances, the discount of the incapacity claims backlog by 25% and the pace at which the SSFA funds have been accomplished — give months forward of schedule.”