what is the old age survivors and disability insurance oasdi program 
the old age survivors and disability insurance oasdi program is the official name for social security in the united states the federal oasdi tax noted on your paycheck funds this program that provides benefits to retired adults and people with disabilities and to their spouses dependents and survivors the goal of the program is to partially replace income that is lost due to old age the death of a spouse or qualifying ex spouse or disability social security recipients will receive a 3 2 increase in 2024 due to a cost of living adjustment the increase in 2023 was 8 7 a reflection of the high inflation preceding the period 1understanding the old age survivors and disability insurance oasdi programthe u s social security program including both retirement and disability income was ushered in through the social security act signed by president franklin d roosevelt on aug 14 1935 when the u s economy was in the depths of the great depression 2 the program has grown massively over the decades along with the u s population and economy 34in 1940 about 222 000 people received an average monthly benefit of 22 60 5 the average monthly benefit was 1 827 in 2023 the benefit amount is reviewed annually and adjusted for inflation 6it is the largest such system in the world and is also the biggest expenditure in the federal budget costing around 1 3 trillion in 2023 7 nearly nine out of 10 individuals age 65 and older receive social security benefits 8social security benefits are determined by calculating the individual s average indexed monthly earnings aime during the 35 years in which the person earned the most 9oasdi payroll taxpayments to qualifying persons are funded through oasdi taxes which are payroll taxes collected by the government they are known as fica taxes short for federal insurance contributions act and seca taxes short for self employed contributions act 10in 2023 and 2024 the social security tax rate is 6 2 for employees and 12 4 for the self employed the combined federal tax rates for social security and medicare are 7 65 and 15 3 for employees and self employed respectively 11these revenues are kept in two trust funds these trust funds pay out the benefits and invest the remainder of the revenue they collect 12there is a cap on annual earnings for which you pay social security tax the maximum earnings subject to the tax is 160 000 in 2023 and 168 600 in 2024 income above those amounts is not subject to further oasdi tax 13oasdi program criteriathe oasdi program provides payments to people who meet certain criteria for old age payments money is paid to qualifying persons starting as early as age 62 full retirement age depends on the individual s birth date and is 67 for everyone born in 1960 or later 14qualifying persons who wait until age 70 but no later to begin collecting benefits collect higher maximum benefits due to delayed retirement credits 15payments are calculated based on people s past wages earned survivors payments are made to surviving spouses or dependents of deceased workers 16 disability payments are made to eligible persons who are no longer able to participate in a substantially gainful activity and who meet additional criteria 17to qualify for retirement benefits a worker must be fully insured a worker becomes fully insured by accumulating credits also called quarters of coverage credits or quarters are accumulated based on covered wages earned for a particular period 18 one quarter of coverage is awarded to a worker for every 1 640 earned in 2023 and 1 730 in 2024 19a worker can earn up to four credits or quarters of coverage per year and 40 credits are needed to qualify for social security income benefits 20