Noteboom The Law Firm

Veteran Benefits to be Paid Electronically

April 22, 2010 - One major complaint about the Department of Veterans Affairs (VA) as far as their disability claims processing and benefit payments is the incredible amount of paperwork generated by the system. The VA is attempting to fix their paperwork burden on many different levels and the most recent revolution will affect how disability payments are paid out.

According to the Treasury Department, the vast majority of federal benefit payments, which includes veterans' benefits, will be made by direct deposit by 2013. It is expected that by doing this, approximately 136 million paper checks will no longer be required to be sent. For businesses using Federal Tax Deposit coupons, it means those businesses must move to electronic tax payments. Overall, this project should save taxpayers approximately $400 million in processing costs over the first 5 years.

Veterans enrolling for disability benefits after March 1, 2011 will receive them either via direct deposit or, if they do not provide information regarding their bank account, via the federal government's Direct Express Debit MasterCard program. Beneficiaries currently receiving disability benefits will switch to either direct deposit or the debit card program by March 1, 2013.

Mandatory direct payment programs have failed to date because the debit card program was not previously available. Now that the card has proven to be a high-quality alternative, the mandated direct payment program can roll full steam ahead.

The VA is making an attempt to make things as easy and as inexpensive as possible for all involved parties. With as many complaints as the VA receives over the amount of paperwork generated, it is good they have become involved in this program.