Citation Nr: A25036498 Decision Date: 04/22/25 Archive Date: 04/22/25 DOCKET NO. 240502-436802 DATE: April 22, 2025 ORDER The reduction in the monthly nonservice-connected pension from $2,573 to $2,555 from January 1, 2024 was proper; the appeal is denied. FINDING OF FACT The Veteran is entitled to a monthly nonservice-connected pension of $2,555. CONCLUSION OF LAW The reduction in the monthly nonservice-connected pension from $2,573 to $2,555 was proper; the appeal is denied. 38 U.S.C. § 1521; 38 C.F.R. §§ 3.3, 3.23, 3.29, 3.105, 3.271, 3.272, 3.273. REASONS AND BASES FOR FINDING AND CONCLUSION The Veteran served on active duty from August 1962 to August 1964. The case is on appeal from an April 2024 decision. In May 2024, the Veteran filed a VA Form 10182 to initiate an appeal to the Board's Direct Review Docket. Thus, the Board will review the evidence of record at the time of the April 2024 decision on appeal. 38 C.F.R. §§ 20.300, 20.301. After the April 2024 decision was issued, the agency of original jurisdiction (AOJ) sent further correspondence to the Veteran regarding his pension rate, which prompted the Veteran to submit a statement regarding his income. An inquiry with the Social Security Administration (SSA) was also received in March 2025 which noted the Veteran's and his spouse's income and Medicare premiums for 2025. In deciding the present appeal, this evidence received after the decision on appeal cannot be consider. 38 C.F.R. § 20.300. The Veteran may file a Supplemental Claim and submit or identify this evidence. 38 C.F.R. § 3.2501. If the evidence is new and relevant, VA will issue another decision on the claim, considering the new evidence in addition to the evidence previously considered. Id. Specific instructions for filing a Supplemental Claim are included with this decision. Whether the reduction in the monthly nonservice-connected pension from $2,573 to $2,555 from January 1, 2024 was proper The Veteran claims that the reduction in his nonservice-connected pension from $2,573 per month to $2,555 from January 1, 2024 is improper. He does not argue that there is any procedural defect in the reduction, and the Board does not discern any procedural issues in the issuance of the reduction. Rather, the Veteran argues that the AOJ miscalculated his SSA income. However, as explained below, the Board discerns no error, and the Board finds that the reduction was proper. Basic entitlement to pension exists if, among other things, the claimant's income is not in excess of the maximum annual pension rate (MAPR) specified in 38 C.F.R. § 3.23. 38 U.S.C. § 1521; 38 C.F.R. § 3.3(a)(3). The MAPR is published in Appendix B of the VA Adjudication Procedures Manual M21-1 and is given the same force and effect as if published in VA regulations. 38 C.F.R. § 3.21. The MAPR is revised every December 1st and is applicable for the following 12-month period. The MAPR shall be reduced by the amount of the countable annual income of the claimant. 38 U.S.C. §§ 1503, 1521; 38 C.F.R. §§ 3.3, 3.23(b). In determining annual income, all payments of any kind or from any source (including salary, retirement or annuity payments, or similar income, which has been waived) shall be included during the 12-month annualization period in which received, except for listed exclusions. 38 U.S.C. § 1503(a); 38 C.F.R. § 3.271(a). Income from the SSA is not specifically excluded under 38 C.F.R. § 3.272. Such income is therefore included as countable income. For purposes of calculating pension benefits, total income may be reduced by amounts equal to amounts paid by a claimant for unreimbursed medical expenses that were "in excess of 5 percent of the applicable maximum annual pension rate or rates. . . as in effect during the 12-month annualization period in which the medical expenses were paid." 38 C.F.R. § 3.272 (g)(1)(iii). In order to be excluded from income, these medical expenses must be paid during the time period at issue, regardless of when they were incurred. In addition, they must be out-of-pocket expenses, for which the claimant received no reimbursement, such as through an insurance company. However, the medical insurance premiums themselves, as well as the Medicare deduction, may be applied to reduce countable income. For the purpose of determining initial entitlement, or resuming payments on an award that was previously discontinued, the monthly rate of pension shall be computed by reducing the applicable maximum pension rate by the countable income on the effective date of entitlement and dividing the remainder by twelve. 38 C.F.R. § 3.273(a). In essence, VA subtracts the total amount of countable income in one year, less excluded income, from the MAPR for that year; then, if a positive amount remains, the rest is divided by twelve to determine the monthly pension benefit. When a change in the MAPR occurs, the Board repeats the calculation with the new MAPR as the starting amount. 38 C.F.R. § 3.273(b)(1). When a change in income occurs, the MAPR will be reduced by the new annualized income effective on the date that the increased income began. 38 C.F.R. § 3.273(b)(2). The Veteran is being paid a VA pension at the aid and attendance rate and has one dependent, his spouse. Thus, the MAPR for 2024 is $32,729, or $2,727.42 per month. In 2024, the Veteran's Social Security benefit, before deductions for Medicare, was $2,660.70 per month, or $31,928.40 per year. His spouse's Social Security benefit was $960.70 per month, or $11,528.40 per year. The Veteran and his spouse each paid $174.70 per month, or $2,096.40 per year for Medicare. Thus, as the Veteran stated in May 2024, his Social Security benefit after deductions for Medicare is $29,832 per year, and his spouse's Social Security benefit after deductions for Medicare is $9,432 per year. However, this will be considered when calculating deductible medical expenses. The Veteran also received income of $4,813 per year from a property, and $14,500 in other retirement income. Thus, total household income is $62,769.40 per year. Medical expenses in excess of $1,083, or 5 percent of the MAPR for a Veteran with one dependent not in need of aid and attendance or housebound are deductible from total income. The Veteran and his spouse's Medicare premiums of $2,096.40 per year each are deductible medical expenses. The Veteran also reported spending $4,800 per month, or $57,600 per year, for in-home care. Thus, total medical expenses are $61,792 per year, $60,709 of which is deductible from total income. After deducting medical expenses from total income ($62,769-$60,709), countable income for VA pension purposes is $2,060 per year. Thus, the MAPR is in excess of countable income by $30,669 per year, or $2,555.75 per month. Rounding down to the nearest dollar, 38 C.F.R. § 3.29, monthly pension entitlement is $2,555. As noted above, this amount reflects deductions for Medicare premiums as part of medical expenses. Thus, the reduction in the Veteran's nonservice-connected pension was proper. ? The appeal is denied. C. CRAWFORD Veterans Law Judge Board of Veterans' Appeals Attorney for the Board J. George 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.