Federal Employees News Digest
Paper check deadline looms
- By FEND Staff
- November 12, 2012
The Defense Finance and Accounting Service reminded those who continue to receive paper pay checks that they soon will have to get their pay electronically to comply with new Treasury Department requirements.
The Treasury Department set a March 1, 2013, deadline for all federal government payments to be delivered by electronic funds transfer, which includes direct deposit.
According to David McDermott, DFAS deputy director of operations, the Treasury Department estimates that the federal government currently spends about $130 million a year to print and mail paper checks. DFAS alone spends $2 million per year to print and mail paper checks to the 1 percent of DFAS payees—military service members, military retirees, annuitants and federal civilian employees—who continue to receive those checks.
“While we’ve always encouraged our customers to use direct deposit or some other form of EFT, federal law and the resulting Treasury rules are taking away the option to receive checks in the mail,” McDermott said.
The Treasury directive affects the entire federal government. Other departments and agencies, such as the Social Security Administration, have similar online resources for making the switch to EFT.
See more at: www.dfas.mil/pressroom/dfasnewsreleasearchive/Release1012002.html, and www.godirect.org.