Principles of Risk Management and Insurance, 13th Edition

Old-Age, Survivors, and Disability Insurance

The Old-Age, Survivors, and Disability Insurance (OASDI) program, commonly known as Social Security, is the most important social insurance program in the United States. Social Security was enacted into law as a result of the Social Security Act of 1935. More than nine out of ten workers are working in occupations covered by Social Security, and about one in six persons receives a monthly cash benefit.

Covered Occupations

Virtually all private-sector employees are covered under Social Security at the present time. Federal civilian employees hired after 1983 are also covered on a compulsory basis. In addition, state and local government employees can be covered by a voluntary agreement between the state ...