Just received this notice from the Social Security administration:
Special Report: Economic Recovery Bill Provides Social Security with Resources to Help Americans
On February 17, 2009, President Obama signed into law the American Recovery and Reinvestment Act of 2009. Among its provisions are one-time payments to Social Security and Supplemental Security Income (SSI) beneficiaries, as well as funding to help the agency address critical needs.
Nearly 55 million people who receive Social Security and SSI benefits will get a special one-time payment of $250. They should receive the one-time payment by late May 2009.
- The payments will be automatic, so people receiving benefits do not need to take any action.
- People who receive both Social Security and SSI benefits will receive only one payment of $250.
- The legislation also provides for a one-time payment to recipients of Department of Veterans Affairs (VA) and Railroad Retirement Board (RRB) benefits. However, if a person receives Social Security or SSI benefits and also receives VA or RRB benefits, he or she will only receive one $250 payment. Social Security will send that payment.
- In April, Social Security will send an advance notice with further information to each person who is eligible for the one-time payment.
- So that we can issue the payments as quickly as possible, we ask that people not contact Social Security unless their payment is not received by June 4, 2009.
Meanwhile, we encourage people to visit www.socialsecurity.gov/payment for answers to frequently asked questions about the economic recovery one-time payments.
So Social Security recipients should receive a notice in April and the actual $250 payment in May. You must have been eligible to receive benefits for November and December 2008 or January 2009. In other words if you became eligible after January 2009 to receive SS benefits, you will not receive the payment. The funds will be delivered the same way you currently receive benefits (direct deposit or paper check).
Please note also that $250 payment is tax free to the recipients.