April 10, 2006

The United States Conference of Mayors is pleased to announce the formation of a new partnership with Go Direct, a national campaign sponsored by the U.S. Department of the Treasury and the Federal Reserve Banks, to encourage people who get Social Security and other federal benefit payments by check to switch to direct deposit.

The campaign reaches out to people through organizations and people they know and trust – such as elected officials, financial institutions and community-based groups – to inform them about the benefits of direct deposit and to help them sign up for it.

“The Conference of Mayors is pleased to join numerous other organizations around the country in partnering with Go Direct and encouraging people to switch to direct deposit,” said Conference Executive Director Tom Cochran. “We are confident our efforts will help federal benefit recipients gain greater financial safety, ease and convenience.”

As part of its partnership with the campaign, the Conference of Mayors is encouraging mayors nationwide to support Go Direct. The campaign makes it easy for mayors to participate by offering a complete electronic toolkit for conducting public outreach and raising awareness for the benefits of direct deposit. According to the Treasury, direct deposit is simply the best way for people to receive Social Security.

Because money goes straight into a person’s account, direct deposit eliminates the risk of lost or stolen checks. Last year alone, the Treasury handled half a million cases of people reporting problems with checks. About 65,000 Treasury-issued checks – more than $60 million in estimated value – were forged in 2005. In fact, people are 30 times more likely to have a problem with a Treasury check than with direct deposit.

Furthermore, direct deposit saves taxpayers millions of dollars. The Treasury issues more than 150 million benefit checks annually. If all those were converted to direct deposit, it would save taxpayers about $120 million annually. Almost all money saved remains in the Social Security Trust Fund – a benefit to all Americans for generations to come.

“We encourage mayors across the nation to share this important information with their constituents,” Cochran said. “Direct deposit gives people one less thing to worry about – and it helps protect them from identity theft and fraud, both of which are growing risks for all Americans.

“The campaign makes it easy for people who get Social Security and SSI to sign up for direct deposit – they can call the toll-free helpline 800-333-1795 or sign up online at www.GoDirect.org,” Cochran added.

Go Direct is sponsored by the U.S. Department of the Treasury and the Federal Reserve Banks. Visit www.GoDirect.org for more information.