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Old Age, Survivors, and Disability Insurance, sometimes known as OASDI, is an American social insurance program that offers payments to retired and handicapped workers as well as to the surviving family members of deceased workers. The Social Security Administration is in charge of running the OASDI program, also known as Social Security (SSA).
Payroll taxes on both employees and employers are collected in accordance with the Federal Insurance Contributions Act (FICA) and the Self-Employment Contributions Act to fund the OASDI program (SECA). The program's benefits, which include retirement benefits, disability benefits, and survivor benefits, are paid for with the money raised through taxes.
The most typical benefit type offered under the OASDI program is retirement benefits. Workers who meet the eligibility requirements, have attained the age of 62, and have accrued sufficient work credits are awarded these benefits. The benefit's amount is determined by the worker's average lifetime earnings and the age at which benefits are started.
Eligible employees who are unable to work owing to a physical or mental impairment that is anticipated to endure at least one year or result in death are given disability compensation. The worker's average lifetime earnings and the extent of their disability are used to determine the benefit amount.
The surviving family members of workers who have accumulated sufficient labor credits are given survivor benefits. Together with a one-time lump-sum death benefit, these benefits also provide spouses, kids, and parents with dependents with continuous monthly payments.
