John G. BALLARD, Plaintiff-Appellee, v. Louis W. SULLIVAN, M.D., Secretary of Health and Human Services, Defendant-Appellant

The Secretary of Health and Human Services appeals the district court order granting Ballard retirement benefits based on his net earnings for the years 1984 and 1985. We reverse.

Ballard was receiving social security retirement benefits when he began working as a traveling salesman for LSI Cuckler. His retirement benefits depended in part on current income. Retirement benefits are reduced by a percentage of each dollar earned in excess of an “exempt amount.” 42 U.S.C. §§ 403(b)(1), (f)(3). In calculating his retirement benefits, Ballard subtracted his business and travel expenses from his…