‘O’ Retirement Terms

Old Age, Survivors, and Disability Insurance Program (OASDI): "The official name for Social Security in the United States. The OASDI is a comprehensive federal benefits program that provides benefits to retirees, disabled people and their survivors. The program was ushered in through the Social Security Act, signed by President Franklin D. Roosevelt on August 14, 1935, when the U.S. economy was in the depths of the Depression. "

Old Age and Survivors Insurance Trust Fund: "An account within the Social Security Trust Fund used to pay benefits to retired workers, the beneficiaries and their children. The Old-Age and Survivors Insurance Trust Fund receives deposits from FICA considered to be over and above the amount needed for day-to-day operations of old-age and survivors insurance under social security. These funds are held in trust, and any funds not required for current expenses are invested in interest-bearing federal securities."

Ontario Teachers' Pension Plan Board (OTPPB): "An organization that oversees the pension plan for public school teachers in Ontario, Canada. The organization was established in 1989 and is responsible for investing approximately $100 billion CAD, making it one of the biggest investment organizations in Canada."

Opt-Out Plan: "A type of 401(k) plan that automatically enrolls the employees of a company to save for their retirement. Eligible employees of a company with this policy are enrolled in the plan at a default contribution rate, usually around 3% of wages, and funds are directed into a default allocation. Employees can change the terms of the plan or opt out completely if they don't want to participate. This differs from a typical 401(k) in that retirement savings will continue to accumulate without any action from the participant. 
Also known as an "automatic 401(k)"."

Oral Will: "An oral will is one that is communicated orally to witnesses, usually on the person's deathbed. An oral will is usually made in haste, which opens up the possibility for errors. 
Oral wills are very controversial, because disappointed relatives can contend that the decedent was not of sound mind and body or that someone exerted undue influence on the decedent when the will was made."

Ordering Rules: "The order in which Roth IRA assets are distributed. Assets are distributed from a Roth IRA in the following order: 
1. IRA participant contributions 
2. Taxable conversions 
3. Non-taxable conversions 
4. Earnings"

Other Post-Retirement Benefits: "Benefits, other than pension distributions, paid to employees during their retirement years. Most post-retirement benefits include life insurance and medical plans. Although these benefits are mostly employer-paid, retired employees often share in the cost of these benefits through co-payments, payment of deductibles and making employee contributions to the plan when required."

Outside Earnings: "Income that temporarily reduces a retired individual's Social Security benefits. Outside earnings from continued work only reduce Social Security benefits for individuals who retire before the age the Social Security Administration defines as full retirement age (currently 65 to 67, depending on year of birth). Retirees who see their benefits reduced because of outside earnings may see these lost benefits restored if they live long enough."

Overcontribution: "Any contribution to a tax-deductible retirement savings plan exceeding the maximum allowed contribution for a given period as determined by the retirement plan's registrar. Overcontributions are subject to the retirement plan's regulations or laws. Overcontributions are usually subject to some form of monetary penalty, intentioned to reduce their occurrences."

Overfunded Pension Plan: "A company retirement plan that has more assets than liabilities. In other words, there is a surplus amount of money needed to cover current and future retirements. Although the surplus can legally be recorded as company income, it cannot be paid out to corporation shareholders like other income as it is reserved for current and future retirees."

Over-withholding: "A generic term referring to an excess amount of tax being withheld for an employee or retirement plan participant throughout the year. Over-withholding can apply to both income and Social Security taxes. Any amount of over-withholding is sent back as a refund to the taxpayer after he or she has filed a return."