The Old Age, Survivors, Disability, and Health Insurance Program (OASDHI)
OASDHI
was created through the Social Security Act of 1935 and is designed to protect eligible workers and their dependents from financial loss resulting from death, illness, disability, and superannuation.
Fully insured
-For old age and survivors benefits is 40 quarters of coverage or one quarter for each year over age 21. Full benefit
Currently insured
-For survivor benefits at least 6 quarters of coverage during the 13-quarter period ending with the quarter of death. Limited benefit
OASDHI-Full old age benefits
(1)Full old age benefits currently begin at age 65 and provide a lifetime pension based on the worker's average earnings during their work years. Old age benefits are also available to certain dependents. (2)Benefits are indexed annually based on the CPI. For 2017, the maximum benefit is $2,639.
OASDHI-Survivors' benefits
(3)Survivors' benefits were created to care for dependents of workers who died before (or after) retirement and are limited to dependent children and sometimes the surviving spouse and surviving dependent parents.
OASDHI-Disability benefits
(4)Disability benefits provide for a qualified worker who becomes totally and permanently disabled. Dependents may be eligible for other benefits.
Benefits through OASDHI programs may be lost from one of the resulting disqualifications:
(A) - Conviction of treason, sabotage, or subversive activity. (B) - Deportation. (C) - Working in a foreign country. (D) - Refusal of vocational rehabilitation by a disabled recipient. (E) - Divorce from the person receiving benefits. (F) - Attainment of age 18. (G) - Marriage, which causes eligibility to termination as there is remarriage after a divorce. (H) - Adoption. (I) - Disqualifying income (excess of $16,920 for 2017 for those receiving benefits under normal retirement age).
Who is NOT covered under Social Security?
(A) - Pre-1984 Federal worker employees. They are covered under Medicare only. (B) - Railroad workers subject to the Railroad Retirement Act. (C) - Federal Civil employees who are under Civil Service Retirement System.
Who is eligible to receive old age retirement benefits?
(A) - Retired workers who is 62 and older. (B) - Spouse of retired worker who is 62 or older. (C) - Divorced spouse, who was married to you for ten years or more, regardless of worker's actual retirement. (D) - Unmarried children under age 18 who are dependents of retiree. (E) - Spouse with dependent children under age 16. (F) - Caretaker parent for a child disabled before age 22.
Who is eligible to receive survivors' benefits?
(A) - Unmarried children under age 18 (fully or currently). (B) - Unmarried disabled children if disability occurs before age 22 (fully or currently). (C) - Surviving spouse with children under age 16 (caretaker, fully, or currently). (D) - Surviving spouse who is 60 or older (fully only). (E) - Disabled widower who is between ages 50 - 60 (fully only). (F) - Dependent parents of worker who is age 62 or older (fully only). (G) - $255 lump-sum benefit paid to widower or child.
Disability benefits
-DB have a five-month waiting period -The definition of disability is no gainful employment expected to last 12 months or result in death. -The following are eligible for benefits: (A) - Disabled worker. (B) - Spouse of disabled worker. (C) - Unmarried child of disabled worker under age 18. (D) - Unmarried child who is disabled before age 22. -Benefits cease upon death.
6) Quarter of coverage
-For 2017 for each $1,300 in annual earnings on which Social Security taxes are paid. A quarter is a calendar quarter, that is, a 3-month period ending March 31, June 30, September 30, or December 31. The maximum is four quarters per year. For example, $5,200 made in the first quarter ($1,300 * 4) will provide 4 quarters of credits for an employee or self-employed individual.
Disability insured
-Fully insured for this purpose is 20 quarters of coverage out of the last 40 prior to disability. -If the worker is between the ages of 24 and 30, they must have coverage for one-half of the quarters since age 21. -If under age 24, they must have 6 out of the last 12 quarters ending with the quarter of disability.
Benefit withheld to earnings ratio
-If an individual is under the normal retirement age and earned more than $16,920 of compensation for 2017, $1 of benefits will be withheld for every $2 in earnings above $16,920. -In the year that the retiree reaches full retirement age, the limit is $44,880 and $1 of benefits will be withheld for every $3 in earnings above $44,880. ---Once the retiree reaches normal retirement age, benefits will not be reduced regardless of the earnings made.
The financing of the OASDHI program
-is through FICA withholding of 6.2% of the first $127,200 of payroll for 2017 for both the employee and employer. -The remaining 1.45% of Medicare funding has no cap for the employee or the employer.
Normal retirement age
65 to 67 years old
Late/delayed retirement up to age 70
Annual Benefits amount increase by percentage
OASDHI-The Medicare portion
The Medicare portion offers health care expense protection to persons over age 65 and persons who qualify as disabled under Social Security.
Primary Insurance Amount (PIA).
The amount of monthly benefits the worker actually receives