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Economy

California joins others in going to debit cards for benefits

Kevin Valine - Modesto Bee

February 02, 2011 01:50 PM

Californians receiving state disability and paid family leave benefits are getting plastic instead of their paper checks.

The Employment Development Department is replacing the tens of millions of checks it issues each year with debit cards, joining more than 40 states that use Electronic Benefits Programs, such as debit cards and direct deposit.

The state agency started the transition in December and expects to complete it next month for the 400,000 people who receive state disability insurance and family leave benefits.

Officials say people will receive their payments about two days earlier with debit cards compared with checks, and the state will save money, as much as $4 million, by not issuing checks.

The Employment Development Department plans to start replacing unemployment checks with debit cards beginning in June, which will result in greater savings.

http://www.modbee.com/2011/02/01/1538451/benefits-ditching-paper-for-plastic.html Read the complete story at modbee.com

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