Social security court ruled pension reduction must use income after tax-deductible expenses for employment income.

The Supreme Court revoked lower court decisions regarding an annuitant's pension reduction based on employment income. The annuitant argued that her gross income should be reduced by deductible business expenses to determine the taxable income affecting her pension. The court held that the definition of 'actual income' for social security purposes must analogously follow income tax rules, requiring the deduction of costs incurred to earn the remuneration.