Citation Nr: 20003164 Decision Date: 01/14/20 Archive Date: 01/14/20 DOCKET NO. 16-57 327 DATE: January 14, 2020 REMANDED The propriety of the adjustment of the appellant’s death pension benefit amounts for the period from May 2015 to March 2016 is remanded. REASONS FOR REMAND The Veteran served on active duty from May 1942 to October 1945. The Veteran passed away on September 18, 2012. The appellant is the Veteran’s surviving spouse. This matter comes before the Board of Veterans’ Appeals (Board) on appeal from an April 2016 administrative decision of the Philadelphia, Pennsylvania Regional Office (RO) of the Department of Veterans Affairs (VA). The appellant asserts that the calculation of her VA death pension benefit amounts from May 2015 through April 2016 is inaccurate. This matter was previously before the Board in February 2019, when the Board remanded this appeal for the Agency of Original Jurisdiction (AOJ) to attempt to verify the earned income portion of the appellant’s annual income for the period in question. As explained in the February 2019 Board remand, the AOJ determined that the appellant’s countable income for this period included non-recurring wages, Social Security Administration (SSA) income, and interest income. Although the AOJ’s determination of the appellant’s wage income and SSA income amounts are supported by the record, the decision as to the appellant’s interest income does not appear to be justified. The AOJ originally determined that the appellant had $230 in annual interest income by multiplying her net worth as reported in her September 2012 pension benefits application by a national interest rate for 60-month certificates of deposit (CDs) which was in place in October 2012. VA continued to apply this calculated annual amount every year for the appellant’s interest income, including for the period on appeal, without taking into consideration that the appellant’s reported net worth decreased in her Eligibility Verification Report submitted in February 2016. VA also never updated the interest rate for subsequent determinations of annual interest income. In addition, it is not clear why the AOJ applied an interest rate for 60-month CDs for all categories of the appellant’s sources of net worth. Further, it is not clear that the calculation VA used to determine the appellant’s interest income was proper. VA’s Adjudication Procedure Manual, M21-1, part V.i.3.c.4.a directs VA to initiate development for interest income from net worth if a claimant reports, or if Federal tax information (FTI) match information shows, assets which may be earning interest, but it is not clear whether or not they are. [VA Manual M21-1 reflects the policy of the Veterans Benefit Administration (VBA), and not the policy of the VA Secretary, given that VBA and the Secretary are separate entities within VA and that M21 provisions do not go through the regular rulemaking procedures. Unlike a regulation, the VA Secretary has no input as to what goes into the Manual.] Here, the appellant’s initial pension application disclosed approximately $20,000 of “cash, bank accounts, certificates of deposit (CDs)” and approximately $5,000 of “IRAs, Keogh Plans, etc.” The appellant also reported on this same application that she did not receive any amount of interest income. Thus, the record is not clear why the AOJ determined that any of the appellant’s net worth items were interest bearing, as there was no development initiated by VA at that time to verify or suggest that the appellant was earning interest on any portion of her reported assets. The Board notes that this portion of the appellant’s countable income appears to amass the least significant contribution to her overall income, but, without any information to verify that the appellant ever earned interest income and, if so, how much was earned, it is possible that the appellant’s interest income could have a significant impact on her death pension benefit amounts for the period on appeal. When this appeal was remanded in February 2019, the AOJ asked the appellant to provide information to verify the amount of interest and/or dividends she received between January 1, 2015, and December 31, 2016. She did not respond. However, even without further response from the appellant, as previously discussed, it appears that the AOJ made an error in calculating the interest income portion of her annual income. As such, a remand is needed for the AOJ either to justify why it counted $230 of annual interest income in adjusting her death pension benefit from May 1, 2015, or to recalculate the benefit to correct for an error made in the annual interest income determination. This matter is REMANDED for the following action: Provide a clear explanation with mathematical calculations as to how the annual interest income portions of the appellant’s annual incomes were determined in the April 2016 decision on appeal. Identify from where and why the amounts and interest rates used to calculate this amount were taken. If it is determined that the annual interest income amounts shown in the April 2016 decision are incorrect, recalculate the appellant’s annual income and death pension benefit entitlement for the period on appeal, i.e., May 2015 through March 2016, and provide a detailed explanation for any recalculations made. No action is required of the appellant until she is notified by VA. However, she is advised of her obligation to cooperate in ensuring the duty to assist is satisfied. (CONTINUED ON NEXT PAGE) Kowalski v. Nicholson, 19 Vet. App. 171 (2005). The appellant also is advised that she has the right to submit additional evidence and argument with respect to this matter. Kutscherousky v. West, 12 Vet. App. 369 (1999). This appeal must be afforded prompt treatment. THERESA M. CATINO Veterans Law Judge Board of Veterans’ Appeals Attorney for the Board C. Davidoski, Associate Counsel The Board’s decision in this case is binding only with respect to the instant matter decided. This decision is not precedential, and does not establish VA policies or interpretations of general applicability. 38 C.F.R. § 20.1303.