John W. Gardner, Secretary of Health, Education and Welfare v. Paul E. Sloane and Alyse S. Sloane

This action was commenced by Paul E. Sloane and Alyse S. Sloane, appellees, (hereafter “Sloane”), pursuant to Section 205(g) of the Social Security Act, 42 U.S.C. § 405 (g), (hereafter the “Act”), to obtain judicial review of a final decision of the Secretary of Health, Education and Welfare, (hereafter the “Secretary”).

THE QUESTION

The question presented is how income from earnings as deductions against old-age Social Security Retirement Benefits should be handled for the year in which a claimant becomes 72. No earnings may be used to decrease a claimant’s benefits in the months after he reaches 72, so the precise question is — may the earnings of the entire tax year in which the claimant became 72 be applied to decrease his benefits in the months before he reached 72.

THE FACTS

Sloane retired as an attorney for the Pacific Gas and Electric Company in 1955, after reaching age 65 in July of that year. He applied for old age insurance benefits. Benefits were paid to him and his wife through November of 1962.

In December 1962, the Social Security Administration determined that there had been an overpayment, and that Sloane and his wife had received benefits to which they were…