Administrative expenses under OASDI

Costs of administering old-age, survivors, and disability insurance (OASDI) are of interest both to specialists in income maintenance and to the general public. This article presents a summary of these expenses compared with several important bases: Contribution income, benefit payments, and taxable payroll. An index is developed and used to analyze changes in administrative expense levels from 1960 through 1979. Over the long run, the cost of operate OASDI per unit of work has increased more slowly than for service industries in general, a trend that should continue in the old-age and survivors insurance program (OASI). Although implementing the 1980 Disability Amendments will raise disability insurance (DI) unit costs, these higher expenses are necessary to obtain the more selective benefit payments provided in this cost-saving legislation.