The majority of the more than 2 million federal recipients in Alabama will not be affected, but approximately 3,000 federal benefit recipients will have to change the way they receive their federal benefit payment.

These 3,000 federal recipients in Alabama must take action now to change the way they receive federal payments, such as Social Security, Veterans' benefits, Railroad Retirement Board benefits, and retirement payments from the Office of Personnel Management, says Bernice Wilson, Urban Specialist, Resource Management, Alabama Cooperative Extension System.

Recipients who receive their state benefits, such as food stamps and cash, using a Benefit Security Card, will still be able to use their current card to access their benefits. Only those Alabama residents who receive federal payments on the card need to make a change.

On May 6, FMS and Citibank mailed a letter to each Alabama federal payment recipient who uses the Benefit Security Card to access their federal payments, says Wilson. The letter explained their options and stressed the importance of making other arrangements within the next few weeks.

The Federal Benefit Security Card, which is used in eight states, combines federal and state benefits on one card and provides individuals access to their money electronically, through Automated Teller Machines and Point of Sale.

Individuals using a Benefit Security Card need to choose one of the following methods for continued electronic access to their federal payments:

1. Recipients may open an Electronic Transfer Account or ETA. The ETA, a low-cost account the U.S. Treasury has developed with participating financial institutions, is available to any recipient receiving federal payments. To locate an ETA Provider, call toll free 1-888-382-3311.

2. Recipients may choose to stay with Citibank and open a Direct Benefit MasterCard Account. To find out more about this option, call Citibank toll free at 1-877-531-5317.

3. Recipients may have the payment deposited directly into a checking or savings account by Direct Deposit. Contact any financial institution to open an account or arrange for Direct Deposit into an existing account.

Beginning July 1, Alabama Benefit Security cardholders who have not yet made other payment arrangements, will NOT be able to access their July 2002 federal payments using the Benefit Security Card until they contact Citibank at the number on the back of the card. Once Citibank is contacted, the funds will be immediately available, and Citibank will remind them to make the new payment arrangements in time for receipt of their August 2002 payment.

Recipients are strongly encouraged to make alternate payment arrangements before June 10, to avoid any inconvenience in receiving payments. Funds will be available in July, but to avoid having to call Citibank to access the money, recipients should make the change before June 10.

Recipients must make the change before August payments are issued to avoid delays in receipt of their federal payments.

Additionally, before Aug. 1, recipients must withdraw or spend down any funds remaining in the Benefit Security Card accounts. After that date, these accounts will be closed.

Federal payments issued on or after Aug. 1 to an Alabama Benefit Security Card account will be returned to the federal paying agency. Recipients will have to contact that agency and provide new payment instructions before their payments will be reissued.