Legal Definitions - OASI

OASI stands for Old-Age and Survivors' Insurance.

Old-Age and Survivors' Insurance (OASI) is a fundamental component of the Social Security program in the United States. It provides financial benefits to eligible individuals who have retired from work, as well as to their spouses and dependent children. Crucially, it also offers financial protection to the surviving family members (such as spouses, children, or dependent parents) of workers who have passed away. These benefits are funded primarily through payroll taxes paid by workers and their employers.

Here are some examples illustrating how OASI applies:

• Example 1: Retirement Income for a Former Worker

  After working for over 40 years, Maria decides to retire at age 68. Having paid Social Security taxes throughout her career, she applies for and begins receiving monthly benefit payments. These payments provide a steady income stream, helping her cover living expenses in her retirement years.

  This example demonstrates the "Old-Age" aspect of OASI, where a retired worker receives benefits based on their past contributions, ensuring financial stability in their later years.

• Example 2: Support for a Deceased Worker's Child

  David, a single father, passes away unexpectedly at age 45, leaving behind his 12-year-old daughter, Emily. Because David had worked and paid Social Security taxes for many years, Emily is eligible to receive monthly survivor benefits until she turns 18 (or 19 if still in high school). This financial assistance helps her guardian provide for her upbringing.

  This illustrates the "Survivors'" component of OASI, providing crucial financial support to a dependent child after the death of a parent who was a covered worker.

• Example 3: Spousal Benefits for a Non-Working Partner

  John worked his entire career, while his wife, Sarah, primarily managed their household and raised their children, working only intermittently. When John retires and begins receiving his OASI benefits, Sarah, who is also of retirement age, becomes eligible to receive spousal benefits based on John's work record. These benefits provide her with an income even though she did not contribute significantly to Social Security through her own employment.

  This example highlights how OASI extends "Old-Age" benefits to eligible spouses, recognizing their role within the family unit and providing financial security in retirement, even if they had limited or no individual work history.