THE VIRGINIAN-PILOT 
              Copyright (c) 1996, Landmark Communications, Inc.

DATE: Monday, July 22, 1996                 TAG: 9607220034
SECTION: FRONT                   PAGE: A4   EDITION: FINAL 
DATELINE: WASHINGTON                        LENGTH:   20 lines

DIRECT DEPOSIT WILL BEGIN AUG. 1 FOR SOCIAL SECURITY

In a move that will save the government millions, Social Security recipients who sign up for benefits after Aug. 1 will have their checks deposited directly into their bank accounts.

Senior citizen groups say the new regulation will provide a safer, more efficient way to handle the payments and eliminate the threat of lost or stolen checks.

People without bank accounts will still get paper checks for now.

Until now, automated payment had been optional. About 61 percent of the 43 million people who receive Social Security benefits have chosen direct deposit. But by 1999, all federal payments will be issued electronically, according to the Treasury Department. by CNB