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HomeMy WebLinkAboutAgenda - 01-21-1997 - 5c 1 ORANGE COUNTY BOARD OF COMMISSIONERS Action Agenda Item No 5-0_ ACTION AGENDA ITEM ABSTRACT Meeting Date: January 21, 1997 SUBJECT: A Resolution recommending the creation of a state task force and education program to address the implementation of the direct deposit mandate. DEPARTMENT Aging PUBLIC HEARING YES NO X Adv. Board on Aging BUDGET AMENDMENT YES NO X ATTACHMENT(S): INFORMATION CONTACT: Jerry M. Passmore (1)Resolution TELEPHONE NUMBER: (2) Suggested Letter Hillsborough 732-8181 Chapel Hill 968-4501 Mebane 227-2031 Durham 688-7331 PURPOSE: To consider a resolution endorsing the need for greater planning for the implementation of the federal direct deposit mandate, effective January 1999. BACKGROUND: The Advocacy Sub-Committee of the Orange County Advisory Board on Aging presented information on the mandated federal direct deposit payment which will impact everyone receiving social security as well as current and retired federal employees. At its November 21, 1996 meeting, the Advisory Board established that very few plans have been made to consider the various ramifications to individual recipients. Many people in Orange County,North Carolina, and the country will most likely encounter a great deal of hardship and fraud if this is implemented without sufficient planning and preparation. Many people can not read or write, or even sign their names. Also, many people have never had any type of bank account and would be unable to manage one. For those who are home bound, accessing their funds might be a problem. People who ive in small communities with only one bank could possibly be assigned a bank elsewhere. The banks will earn a tremendous amount of interest from the time of deposit until the payments are credited to individuals' accounts. Currently $29 million is deposited monthly in the Orange, Durham, Granville and Person county area. It is anticipated that they will compete for the recipients' business by offering free accounts. Those without an account may be assigned a bank. In addition, an ATM type card may be used which can increase the chance of fraud for those whose pass codes become known which will allow access to their whole accounts, instead of a paper check. 2 The Social Security Administration has limited resources to educate the public, especially the poor, elderly, and infirm, about these issues, and others. For example: People will not receive a monthly statement, only an annual one. RECONMIENDATION: The Orange County Advisory Board on Aging recommends that the Board of County Commissioners adopt the attached resolution and encourage the sending of letters to Gov. James Hunt, Sec. Robin Britt, and Sec. Harlan Boyle with copies to: Ms. Bonnie Cramer,Director,Division of Aging;Ms. Doris Dick, Speaker, Tar Heel Legislature;Ms. Ann Johnson,President,North Carolina Coalition on Aging;Mr. John Denning, Chair, Governor's Advisory Council on Aging,Mr. David Moser,Director,Triangle J;U.S. Sen. Jesse Helms, and U.S. Sen. Lauch Faircloth;U.S. Rep. Elect David Price; State Sen.Elect Howard Lee, State Sen. Elect Eleanor Kinnaird; Sate Rep. Elect Verla Insko;and representatives of the Social Security Administration: Mr. R.C. Tysinger, Area Director and Mr. John Pereza,District Manager. The letter should recommend that: (1)representatives of the elderly and handicapped communities be on any task force(s)addressing the issue of implementing the direct deposit mandate, (2)a state wide volunteer organization, similar to the Seniors'Health Insurance Information Program(SHIIP)*,be established to educate people, and (3)the education of people should emphasize a choice of banks as well as how to manage an account. * Similar programs are in every state. FN:Dirdepab.doc 3 r ORANGE COUNTY BOARD OF COMMISSIONERS A RESOLUTION ENDORSING A STATEWIDE TASK FORCE AND ECUATION PROGRAM FOR IMPLEMENTING DIRECT DEPOSIT MANDATE WHEREAS, all recipients of checks from the federal treasury, such as social security checks, will be required to participate in direct deposit payments as of January 1, 1999. WHEREAS, this will dramatically impact current and future individual recipients of social security and other federal payments. WHEREAS, the majority of the people most likely to be neg€aively impacted by this change will be the elderly, poor, and disabled. WHEREAS, the elderly population is growing at an ever increasing rate. WHEREAS, many people in Orange County may encounter a great deal of difficulty with the implementation of direct deposit due to many factors: no bank accounts, cost, lack of knowledge, insufficient money management skills; or personal inaccessibility due to infirmities or lack of transportation. WHEREAS, banks will be one of the major direct deposit beneficiaries of this new mandate receiving millions of dollars monthly in direct deposit funds just in Orange County. WHEREAS, very few plans have been made to consider the ramifications for affected individual recipients, NOW, THEREFORE, BE IT RESOLVED THAT the Orange County Board of Commissioners does hereby endorse the need for a statewide task force that would include elderly and disabled representatives, as well as representatives from the banking industry, to address the issue of implementing the direct deposit mandate; and The Orange County Board of Commissioners advises that a state wide volunteer organization similar to the Seniors' Health Insurance Information Program(SHIIP)be established to educate people about direct deposit, especially with regard to choosing a bank and managing an account. NOW, THEREFORE, be it resolved that William Crowther, Chair of the Orange County Board of Commissioners is hereby authorized to submit this resolution. DATE Official Signature SEAL 4 Dear Attached is a resolution underscoring the need to plan and implement the upcoming federal direct deposit mandate, effective January 1, 1999. This will affect people receiving checks from the U.S. Treasury, inc'uding social security. Many people, especially the poor, elderly, illiterate, and disabled will have a great deal of difficulty functioning under the new system. In addition, many individuals do not have an account, and may be assigned a bank whose location may not be appropriate. Account access is a concern with its increased fraud and victimization implications. We recommend that a task force be convened immediately to plan an educational campaign and implementation of the disbursement of direct deposit funds. The emphasis should be on choice of banks. In addition,we urge that the baYiking community begin offering seniors free accounts to encourage them to have direct deposit on an ongoing basis before January 1999. In addition to the task force, we recommend that an educational corps of volunteers be organized and trained based on the Seniors' Health Insurance and Information Program(SBM)model. We also suggest that North Carolina recommend similar programs for other states, all of which have programs similar to SHIIP. Since the implementation process has not been finalized and decisions have not been made, it is especially important to have representation and education by those who are in the populations that will be the most greatly impacted. Sincerely, Chair, Orange County Board of County Commissioners