The Old Age, Survivors, and Disability (OASDI) program of the Social Security Administration helps meet the needs of persons who have retired (Old Age), dependents of persons who are deceased (Survivors), and persons who have become disabled, as well as their dependents (Disability). Although the Social Security system consists of these three components, when system reforms are discussed, the emphasis primarily is on retirement benefits. In recent years, however, national attention has been drawn to the SSDI, or disability, program. The number of applicants for SSDI has increased due to an expansion of the classes of disabilities that could qualify an individual for benefits and to the numerous claims being filed by veterans of recent wars, such as the War in Iraq.

This increase in SSDI applications has resulted in lengthy time lags in processing the paperwork before eligible individuals can receive benefits. Enrollment in the SSDI program also has increased dramatically. Over the past two decades, the proportion of individuals between the ages of 25 and 64 who receive SSDI benefits nearly doubled, rising from 2.2 percent in 1985 to 4.1 percent in 2005 (Autor and Duggan 2006).

To be eligible to receive Social Security Disability Insurance (SSDI) benefits, a person must (1) have worked in a job covered by Social Security for at least five of the past ten years, and (2) have a medically determinable physical or mental impairment that is expected to result in death or to last for at least a year and that prevents the individual from engaging in substantial gainful activity (Autor and Duggan 2006). The SSDI program provides benefits to a disabled worker, his/her spouse, and his/her children. The amount of monthly benefits is pegged to the amount of taxable earnings of the disabled worker.

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Date Published: July 2007