What Is the Old-Age and Survivors Insurance (OASI) Trust Fund?
The Old-Age and Survivors Insurance Trust Fund (OASI) is a U.S. Treasury account that is used to deposit tax receipts that fund Social Security benefits paid to retired workers, their surviving spouses, and eligible children. The fund is managed by the Social Security Administration (SSA).
The SSA holds the authority to distribute OASI Trust Fund benefits to the eligible parties.
How the OASI Trust Fund Works
Taxes received under the Federal Insurance Contributions Act (FICA) and the Self-Employment Contributions Act (SECA) are deposited daily into the OASI Trust Fund. The SSA invests these funds, held in trust, and other resources that are not required for current expenses into interest-bearing federal securities. The interest earned is, in turn, deposited into the fund.
The Old-Age and Survivors Insurance Trust Fund, created Jan.1, 1940, was an outgrowth of the Social Security Act amendments of 1939.
The fund's Board of Trustees consists of six members, two of whom are appointed by the president and confirmed by the Senate. The remaining four positions are held by four Cabinet-level officials. These are the secretary of the Treasury, the secretary of the Department of Labor, the secretary of Health and Human Services, and the Social Security commissioner.