You've got two years to comply or lose your right to pilot an
aircraft:

http://www.aopa.org/flightplanning/a...28plastic.html
FAA mandates plastic pilot certificates
By AOPA ePublishing staff

Still hanging onto your paper pilot certificate? You’ll need to
upgrade to a plastic pilot certificate by March 31, 2010. The FAA
released its final rule on Feb. 28, announcing the required switch
to the certificate it deems is more counterfeit resistant. When
the FAA proposed this mandate in 2005, AOPA members overwhelmingly
supported the move to a more secure certificate.

If you are attached to your paper certificate and original
issuance date (the plastic certificate will have a new one), don’t
worry. You can keep your paper certificate for nostalgia; you just
can’t use it to fly. If you do miss the 2010 deadline, you won’t
have to take a checkride or any exams to get back in the air as
pilot in command. Simply request the plastic certificate.

Temporary, student, and flight instructor certificates are not
impacted by this rule. Those with nonpilot certificates, such as
ground instructors, flight engineers, and mechanics, will have
until March 31, 2013 to change to a plastic certificate.

Pilots can request the plastic certificate through the FAA’s Web
site. The cost is $2. However, if you change your pilot
certificate number from your Social Security number, the switch is
free.

Here's the link to request a plastic certificate:
http://www.faa.gov/licenses_certific...e_replacement/

Here's the new rule:
http://a257.g.akamaitech.net/7/257/2...df/E8-3827.pdf