’WPC:  
          ŖpåŌĆ4_Ė„;O('	ž3­vT6uųÕ+mØė<3yk=·²§ū÷,#»EĘg±*EītØ¤¼uå8gKÜāj¢©É=zI×\įÉS¦ć
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Gņ¦Ź×TöV±?FjAg%ŠŹTÓń±9SSw·ŠWĮ>¢ļŽ}¬²éĒMl [ą	Ķ¦¶½¾šdšĮni®ļDŗ“x}==FI|4K1Då÷źō¹RžśŅ!ü£_#āŅ Qū2}"@$FrNxXŅ½ģR=įņń<0Ļ­»	Ž-Ē6ēhÅĶfg6I+$¤i«"„~Ąåo VŖūĢ*KŹō (ĪĒaT_	Tv“Īa» E           0   ~   Ę  0   x   D  0   k   ¼  0   k   '  0        0   ~   ,  0   Ń   Ŗ  0   ä   {	  0   ¦   _
  0   ÷     0   
  ü  0       0   1  $  0   C  U  0   V    0   Ļ   ī  0   ¤   ½  0   ¤   a  0   Ć     0   ¼   Č  0   »     0   Ł   ?  0   £     0   £   »   U   .   ^  	%         U   >     0   z   Š  0   ä   J  	      .  0   =   ?  0   F   |  0   P   Ā  	1        0   Ł   §  	1       0   ¾     	1   m   E  0      ²   E      ?   U  N   A   	        #       n   X      0   r   ų!  	B      j"     ö  "     ö  }&   	      s*     i  y*        ā-   U   .   ī-        .   !   Š   ,.   !      ü.   !      /   !      0   !      ¬0   !     <1   	      L2  "   ]  R2  	)      Æ5      .  ½5   U  N   ė6  w   @   97  4      y7            y7     ~  7      V       &          ’’8 D o c u m e n t [ 8 ]   D o c u m e n t   S t y l e   ą0    . .  ąą8    `	. . `	 ąĢ     V                ’’8 D o c u m e n t [ 4 ]   D o c u m e n t   S t y l e   ą    . .  ąņņņņ.óóóó    V                 ’’8 D o c u m e n t [ 6 ]   D o c u m e n t   S t y l e   ą8    . .  ąĢ     V                 ’’8 D o c u m e n t [ 5 ]   D o c u m e n t   S t y l e   ą0    . .  ąĢ     V       /         ’’8 D o c u m e n t [ 2 ]   D o c u m e n t   S t y l e   ĢņņŌ2     ŌA.Ō3
   
 ŌņņŌ
     ŌŌ     ŌĢ óóóó    V       &          ’’8 D o c u m e n t [ 7 ]   D o c u m e n t   S t y l e   ą0    . .  ąą0    `	. . `	 ąĢ     z       U          ’’: R i g h t   P a r [ 1 ]   R i g h t - A l i g n e d   P a r a g r a p h   N u m b e r s   ąŠ    . .   ąŌ2       ŌI.Ō3
   
 Ōą     °. . ° ąą0    . .  ąĢ     z       h          ’’: R i g h t   P a r [ 2 ]   R i g h t - A l i g n e d   P a r a g r a p h   N u m b e r s   ą    . .  ąąŠ    `	. . ų ąŌ2      ŌA.Ō3
   
 Ōą     . .  ąą0    `	. . `	 ąĢ     V       ?         ’’8 D o c u m e n t [ 3 ]   D o c u m e n t   S t y l e   Ģą    . .  ąņņŌ2     Ō1.Ō3
   
 ŌŌ
     ŌŌ     Ō óó    z       {          ’’: R i g h t   P a r [ 3 ]   R i g h t - A l i g n e d   P a r a g r a p h   N u m b e r s   ą    . .  ąą    `	. . `	 ąąŠ    ø. . P
 ąŌ2      Ō1.Ō3
   
 Ōą     `	. . `	 ąą0    ø. . ø ąĢ     z                 ’’: R i g h t   P a r [ 4 ]   R i g h t - A l i g n e d   P a r a g r a p h   N u m b e r s   ą    . .  ąą    `	. . `	 ąą    ø. . ø ąąŠ    . . Ø ąŌ2      Ōa.Ō3
   
 Ōą     ø. . ø ąą0    . .  ąĢ     z       ¢          ’’: R i g h t   P a r [ 5 ]   R i g h t - A l i g n e d   P a r a g r a p h   N u m b e r s   ą    . .  ąą    `	. . `	 ąą    ø. . ø ąą    . .  ąąŠ    h. .  ąŌ2      Ō(1)Ō3
   
 Ōą     . .  ąą0    h. . h ąĢ     z       µ          ’’: R i g h t   P a r [ 6 ]   R i g h t - A l i g n e d   P a r a g r a p h   N u m b e r s   ą    . .  ąą    `	. . `	 ąą    ø. . ø ąą    . .  ąą    h. . h ąąŠ    Ą. . ą ąŌ2      Ō(a)Ō3
   
 Ōą     h. . h ąą0    Ą. . Ą ąĢ     z       Ē          ’’: R i g h t   P a r [ 7 ]   R i g h t - A l i g n e d   P a r a g r a p h   N u m b e r s   ą    . .  ąą    `	. . `	 ąą    ø. . ø ąą    . .  ąą    h. . h ąą    Ą. . Ą ąąŠ    . . ° ąŌ2      Ōi)Ō3
   
 Ōą     Ą. . Ą ąą0    . .  ąĢ     z       Ś          ’’: R i g h t   P a r [ 8 ]   R i g h t - A l i g n e d   P a r a g r a p h   N u m b e r s   ą    . .  ąą    `	. . `	 ąą    ø. . ø ąą    . .  ąą    h. . h ąą    Ą. . Ą ąą    . .  ąąŠ    p. .  ąŌ2      Ōa)Ō3
   
 Ōą     . .  ąą0    p. . p ąĢ     V       X         ’’8 D o c u m e n t [ 1 ]   D o c u m e n t   S t y l e   ĢŌ     Ōą@    ģ. . ^ ąņņņņŌ
      ŌŌ2      ŌI.Ō3
   
 ŌŌ    ŌŌ     ŌŌ      ŌĢ óóóó    l       2         ’’: T e c h n i c a l [ 5 ]   T e c h n i c a l   D o c u m e n t   S t y l e   ą    . .  ąņņŌ2     Ō(1)Ō3
   
 Ō.óó    l       2         ’’: T e c h n i c a l [ 6 ]   T e c h n i c a l   D o c u m e n t   S t y l e   ą    . .  ąņņŌ2     Ō(a)Ō3
   
 Ō.óó    l       /   %      ’’: T e c h n i c a l [ 2 ]   T e c h n i c a l   D o c u m e n t   S t y l e   ĢņņŌ2     ŌA.Ō3
   
 ŌņņŌ
     ŌŌ     ŌóóĢ ą    . .  ąóó    l       ,   !      ’’: T e c h n i c a l [ 3 ]   T e c h n i c a l   D o c u m e n t   S t y l e   ĢņņŌ2     Ō1.Ō3
   
 ŌŌ
     ŌŌ     Ō ą    . .  ąóó    l      (   !      ’’: T e c h n i c a l [ 4 ]   T e c h n i c a l   D o c u m e n t   S t y l e   ņņŌ2     Ōa.Ō3
   
 ŌŌ
     ŌŌ     Ō ą    . .  ąóó    l       :   0      ’’: T e c h n i c a l [ 1 ]   T e c h n i c a l   D o c u m e n t   S t y l e   ĢņņņņŌ
      ŌŌ2      ŌI.Ō3
   
 ŌŌ    ŌŌ     ŌŌ      ŌĢ óóą    . .  ąóó    l       1         ’’: T e c h n i c a l [ 7 ]   T e c h n i c a l   D o c u m e n t   S t y l e   ą    . .  ąņņŌ2     Ōi)Ō3
   
 Ō.óó    l       1         ’’: T e c h n i c a l [ 8 ]   T e c h n i c a l   D o c u m e n t   S t y l e   ą    . .  ąņņŌ2     Ōa)Ō3
   
 Ō.óó< ž6X  9   ` (   C o u r i e r          4 X) ō\	  	   `   & T m s R m n       L e g a l   P r o       R       &          ’’8 B i b l i o g r p h y   B i b l i o g r a p h y   ą0    . .  ąą     °. . ° ąĢĢ    f          p        ’’2 D o c   I n i t   I n i t i a l i z e   D o c u m e n t   S t y l e   Ó     ÓĒÓS 	"   	             I. 1. A. a.(1)(a) i) a)                 S ÓŲ                     Ų    !           (                  ’’$       Ģą0
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 ą    (                  ’’$       ą0
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 ą   	       ’’  A _ e k q w    D o c u m e n t   D o c u m e n t   S t y l e   I .   1 .   A .   a .   ( 1 )   ( a )   i )   a )         j       o            ’’4 T e c h   I n i t   I n i t i a l i z e   T e c h n i c a l   S t y l e   ÓS 	$                      1 .1 .1 .1 .1 .1 .1 .1                 ž S ÓŲ                     Ų          ’’        C u y    ± É å T e c h n i c a l   T e c h n i c a l   D o c u m e n t   S t y l e   1   1 . 1   1 . 1 . 1   1 . 1 . 1 . 1   1 . 1 . 1 . 1 . 1   1 . 1 . 1 . 1 . 1 . 1   1 . 1 . 1 . 1 . 1 . 1 . 1   1 . 1 . 1 . 1 . 1 . 1 . 1 . 1         x   F               £R2 P l e a d i n g   H e a d e r   f o r   n u m b e r e d   p l e a d i n g   p a p e r   Ó    Č    ÓŃ     ° ŃŃ   č° ŃÖ 2       ’’ Ķ Ka:; Ö                 # e   3 7 = C I Q Y a g ­   ­   1 .   a .   i .   ( 1 )   ( a )   ( i )   1 )   a )       (   e               2$$ Ø   Ø   Ż
 -  Ļž! ŻŌ 4  Xv  X  X4 X   ŌŌ   Xć X  X4 Xv ŌÓ     ÓŻ    Ż  ( uH  	   Z  6 T i m e s   N e w   R o m a n   R e g u l a r           Č   H P   L a s e r J e t   5 P / 5 M P   ( H P )                             HPPCL5G      ,ä ,,,,,ä 0                                                                                                                                                             nLhĪ« < ž6X  9   ` (   C o u r i e r                                                                                                         Xōx ž6X   @É 8Å; X@) ō\	  	   `   & T m s R m n       L e g a l   P r o                                                                                   XXt ō\	    P ØPU XP    (   J               Ļž$ ”   ”   Ō   Xģ  X  X Xģ ŌŌ   XQ X  X Xģ ŌÓ     Ó                   d       ’u n r e i m b u r s e d ’   ’C . F . R . ’  ’B r ’  ’F l o r e n t i n o ’   ’G i a n c a t e r i n o ’   ’H o l b r o o k ’  ’M c T i g h e ’  ’F r a n k e l ’  ’L e w i s v i l l e ’  ’N e m e s i o ’  ’C o r t e z ’  ’A p p ’  ’P T B ’  ’E r l i n d a ’  ’B a l u y u t ’  ’D o r l a n d ’  ’2 8 t h ’  ’V A R O ’  ’R O ’  ’L o r e n z o ’  ’P e r e z ’  ’A u g u s t o ’  ’B a l a g t a s ’  ’P r o s c e l l e ’  ’T a b l a z o n ’  ’o p ’  ’S h e r m a n ’  ’S M R s ’  ’S u p p l ’  ’G . I . ’  ’S u p p ’  ’E s p i r i t u ’  ’G r o t t v e i t ’  ’J e n s e n ’  ’C o l l e t t e ’ $ ’r e a d j u d i c a t i o n ’$  ’B V I A ’  ’i n c u r r e n c e ’  ’a g r r a v a t i o n ’  ’C a l u z a ’  ’R o b i n e t t e ’  ’E d e n f i e l d ’  ’R t ’  ’B B ’   ’F a r m e r s v i l l e ’   ’R u s s o ’  ’O ' H a r e ’        ’u n r e i m b u r s e d ’   ’C . F . R . ’  ’B r ’  ’F l o r e n t i n o ’   ’G i a n c a t e r i n o ’   ’H o l b r o o k ’  ’M c T i g h e ’  ’F r a n k e l ’  ’L e w i s v i l l e ’  ’N e m e s i o ’  ’C o r t e z ’  ’A p p ’  ’P T B ’  ’E r l i n d a ’  ’B a l u y u t ’  ’D o r l a n d ’  ’2 8 t h ’  ’V A R O ’  ’R O ’  ’L o r e n z o ’  ’P e r e z ’  ’A u g u s t o ’  ’B a l a g t a s ’  ’P r o s c e l l e ’  ’T a b l a z o n ’  ’o p ’  ’S h e r m a n ’  ’S M R s ’  ’S u p p l ’  ’G . I . ’  ’S u p p ’  ’E s p i r i t u ’  ’G r o t t v e i t ’  ’J e n s e n ’  ’C o l l e t t e ’ $ ’r e a d j u d i c a t i o n ’$  ’B V I A ’  ’i n c u r r e n c e ’  ’a g r r a v a t i o n ’  ’C a l u z a ’  ’R o b i n e t t e ’  ’E d e n f i e l d ’  ’R t ’  ’B B ’   ’F a r m e r s v i l l e ’   ’R u s s o ’  ’O ' H a r e ’     Č   
   _  Ż
 '  ’’( ŻŻ    ŻŌ   Xģ  X  X Xģ ŌÓ    Č    ÓŅ    X° ŅŅ   °° ŅÓ    ’’Ą°   X Óß> . ( '                 ü ° ų*       d       > ßß> . ( '                  ° ų*       d      > ßĢĢą    H Ą ą1ĢĢą    H Ą ą2ĢĢą    H Ą ą3ĢĢą    H Ą ą4ĢĢą    H Ą ą5ĢĢą    H Ą ą6ĢĢą    H Ą ą7ĢĢą    H Ą ą8ĢĢą    H Ą ą9ĢĢą    Š Ą ą10ĢĢą    Š Ą ą11ĢĢą    Š Ą ą12ĢĢą    Š Ą ą13ĢĢą    Š Ą ą14ĢĢą    Š Ą ą15ĢĢą    Š Ą ą16ĢĢą    Š Ą ą17ĢĢą    Š Ą ą18ĢĢą    Š Ą ą19ĢĢą    Š Ą ą20ĢĢą    Š Ą ą21ĢĢą    Š Ą ą22ĢĢą    Š Ą ą23ĢĢą    Š Ą ą24ĢĢą    Š Ą ą25ĢĢą    Š Ą ą26ĢĢą    Š Ą ą27ĢĢą    Š Ą ą28Ō"       ą.Ą+   Ų'Ą+  Ą+" Ōģ   KØ  ¾ < ž6X  9   ` (   C o u r i e r         3| Q   5 ¹    ž’" B J Q \ s  « Č ’’’’Ź ’’’’’’ń³÷?’’’’’’’’’’’æ?ū’÷’’’Ļ’’Ļ’ō=Ą4    /’’’’’’N÷’’ķ’’ßR«’ł                  šåś’’ž’’’’’’’ß’’`     <   @0Å’ń||qĒ’?ųńćĒ      Ųó’’’ż’’÷ßMß        @  ą       " ’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’_4@@d¼¤0LLdØ0@0ddddddddddd88ØØØdÄ |¤¤HX¼ x l¤Ä@d@dd0dlXld@`l84h8¤llllLL@l\XXXdddØĢ x    l  ¤   " ’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’_4<Dd¼0LLdØ0D0ddddddddddd88ØØØ\Ä| LL°xl|°|TdTdd0hhXhX<Tl48d4¤lhhd@H8lXTPPdddØĢ x   l |    " ’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’_4@@d4LLdØ0@0ddddddddddd88ØØØ`ÄxPd¼|t|øTdTdd4hlXpX@`p<@l<¤pdplTTDp\`XXdddØĢ |   t |    " ’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’_,44P(@@P(8(TPPPPPPPPPP,,P |pttd<Hxh|d|Xl| ||t4T4PP(PXHXP4PX,,T,XXXX@@4XHpHHHTPTØ d  | X l    " ’’~ Æ ² ’’Ż ’’’’’’’’’’’’’’’’’’Z4@ d¼¤ LLdØ0@0ddddddddddd88 Ø dÄ |¤¤HX¼ x l¤Ä@ @ d dlXld@`l84h8¤llllLL@l\XXX/                                               d Ģ)     dd            d  ll               d ¤.                                    @        @@     Hæ    ? x x x , ,   Xx įBž’ž’ž’ž’ž’ž’ž’’’ž’’’’’’’ž’’’’’ž’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’ž’ž’ž’ž’ž’’’T8  : T C T , , / XT »Ež’ž’ž’ž’ž’ž’ž’’’ö ’’’’’’q’’’’ģ’’’’’’’’’’ž’ž’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’gž’ž’ž’ž’ž’TE  : P C P , , \  XP Hcž’ž’ž’ž’ž’ž’ž’’’’’’’’’’’ž’’’’’ž’’’’’’’’’’’ž’ž’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’ž’ž’ž’ž’’’’’Ō  : T C T , ,   XT sÅž’ž’ž’ž’ž’ž’ž’’’ž’’’’’’’’’’’’’ž’’’’’’’’’’’ž’ž’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’ž’ž’ž’ž’’’’’Ō+ s 4 D 8 D , , Ź ōD xuž’ž’ž’ž’ž’ž’ž’’’ž’’’’’’’ž’’’’’{ ’’’’’’’’’’ž’ž’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’ž’ž’ž’ž’ž’ž’  : T C T , , ÷  XT »Ež’ž’ž’ž’ž’ž’ž’’’ž’’’’’’’ž’’’’’ž’’’’’’’’’’’ž’ž’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’ž’ž’ž’ž’ž’ž’’’’’etter Gothic Bold Letter Gothic Italic Univers  Univers Bold Univers Bold Italic Univers Condensed Univers Condensed Bo 6 7 8 9 : ; < Ō6X  9  ` +   C o u r i e r         g* čų  	 p`   T m s R m n         Ą( čųć	 p`   T m s R m n   I t a l i c       (* °ųH  	 p   T m s R m n   B o l d       r)  Š   	 p`   T m s R m n          * čų  	 p`   T m s R m n       L e g a l   ’( ČhH  	   Z  6 T i m e s   N e w   R o m a n   R e g u l a r         
   y « z Ź {  | e} Ź ~   {   D  Ź Z/#Z/#  ą0    .    k e e n . r e d                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
            Ļ5   
 '           U S C V A    0    U S C V A   
 .      
       
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* ģ ąŌ )  Xīc X X Xć Ōņņń}ńŌ% *    Ōń}ńUNITEDSTATESCOURTOFVETERANSAPPEALSóóŠ   	 °      ŠĢĢą@    ##9 ģ ąņņNo.96299Š   	 Š   ŠĢą@    1 ģ ąDonaldR.Keen,Appellant,óóŠ   	 `	°   ŠĢą@    = ģ ąņņv.óóŠ   	 @   ŠĢą@    ÖÖ5 ģ ąņņTogoD.West,Jr.,óóŠ   	  p	   Šą@    * ģ ąņņSecretaryofVeteransAffairs,Appellee.óóŠ   	 `	
   ŠĢĢą@    ee( ģ ąOnAppealfromtheBoardofVeterans'AppealsĢĢĢą@    MM0 ģ ą(Decidedń ńń~ńfEBRUARYń~ńńńń~ńń~ńńńFebruaryńńń~ńń~ńńń5,1999ńńń ńńńńńŌ% <    Ōńń)ĢĢĢą     ąņņLisaM.Myersóówasonthebrieffortheappellant.Š   	 Š   ŠĢą     ąņņRobertE.Coyóó,ActingGeneralCounsel;ņņRonGarvinóó,AssistantGeneralCounsel;ņņCarolynŠ   	 `°   ŠF.Washingtonóó,DeputyAssistantGeneralCounsel;andņņKarenP.GallaóówereonthebrieffortheŠ   	 P    Šappellee.ĢĢą     ąBeforeNEBEKER,ņņChiefJudgeóó,andKRAMERandHOLDAWAY,ņņJudgesóó.Š   	  p   ŠĢą     ąNEBEKER,ņņChiefJudgeóó,filedtheopinionoftheCourt.KRAMER,ņņJudgeóó,filedanopinionŠ   	  P   Šconcurringintheresult.ĢĢÓ         Óą     ąNEBEKER,ņņChiefJudgeóó:Theappellant,DonaldR.Keen,appealstheFebruary15,1996,Š   	 Š     ŠdecisionoftheBoardofVeterans'Appeals(BVAorBoard)whichdeterminedthat,effectiveĻJanuary1,1993,Mr.KeenwasnotentitledtononserviceconnecteddisabilitypensionbenefitsĻundersection306oftheVeterans'andSurvivors'PensionImprovementActof1978(VSPIA),ĻPub.L.No.95588,92Stat.2497(1978),becausehis1992incomeexceededthestatutorylimit.ĻForthereasonsstatedbelow,theCourtwillvacatetheBVAdecisionandremandthematter.ĢĢą@    22: ģ ąņņI.FACTSóóŠ   	 Ø*ų%,   Šą     ąŌ @  Xīc X X) Xīc ŌIn1971,Mr.Keenwasgrantedanonserviceconnecteddisabilitypension.Record(R.)atŠ   	 ,`'.   Š4445.AsarecipientofnonserviceconnecteddisabilitypensionwhentheVSPIAbecameeffectiveŠ    x-Č(0   ŠonDecember31,1978,hewaseligibletoelecttoreceivean"improved"pensionunderthenewAct,Ļor,undersection306ofthatAct,tocontinuetoreceiveapensionasprovidedundertheearlierĻpensionprogram,i.e.,a"section306pension."Ō# )  X^= X X@ X^=Ę  # ŌŌ @  X^= X X) X^= ŌMr.KeenchosetocontinuetoreceivepensionunderŠ   	 Š   Šsection306.Ģą     ąInDecember1992,theveteransubmittedaVAEligibilityVerificationReportwhichĻreflectedthatheandhiswifehadreceivedSocialSecuritybenefits(althoughshehadalsoworkedĻforpartoftheyear),andhiswifehadbeenpaidalumpsumof$10,642.48fromhertworetirementĻaccounts.R.at85,8788.Healsoclaimedunreimbursedmedicalexpensesfor1992intheamountĻof$5,776.22.ņņIdóó.TheVAregionaloffice(RO)terminatedthesection306disabilitypensionŠ   	 š@   ŠeffectiveJanuary1,1993,basedonafindingthatthelumpsumpaymentfromMrs.Keen'sĻretirementplancausedMr.Keen'sincometoexceedtheeligibilitylevel.R.at92.Mr.KeenĻappealedthatdeterminationtotheBVA.R.at94,111.Afterperformingvariouscalculations,ĻincludingdeterminingtheamounttobedeductedfromtheveteranššscountableincomeforĻunreimbursedmedicalexpensesunder38C.F.R.šš3.262(l)(1998),theBVAconcludedthattheĻveteranššstotalcountableincomein1992exceededthelimitsetin38C.F.R.šš3.26(a)(1998),andĻthattheROhadproperlyterminatedsection306pensionbenefits.R.at9.Thisappealfollowed.ĢŌ# )  X^= X X@ X^=ī
  # ŌŠ   	 0    Šą@    YY8 ģ ąņņII.ANALYSISóóŠ   	 č"   Šą     ąTherearethreetypesofnonserviceconnectedpensionprogramsunderwhichVApaysĻeligibleveterans:"oldlaw"pension,"section306"pension,and"improved"pension.Thefirsttype,Ļ"oldlaw"pension,isavailabletoveteranswhowereinreceiptofnonserviceconnectedpensiononĻJune30,1960,underthepensionprogrampreservedbysection9(b)oftheVeterans'PensionActĻof1959(VPA),andwhohavehadnobreakineligibility.Pub.L.No.86211,šš9(b),73Stat.432,Ļ436(1959).The1959VPAexcludedfromcountableincome"paymentstoanindividualunderĻpublicorprivateretirement,annuity,endowment,orsimilarplansorprogramsequaltohisĻcontributionsthereto."ņņIdóó.,šš2(a),73Stat.432(amendingprovisioncodifiedat38U.S.C.šš503,Š   	 Ų'(#2   Šsubsequentlyrenumberedas38U.S.C.šš1503).FurtherstatutoryamendmentsthatbecameeffectiveĻDecember31,1964,eliminatedfullrecoupmentofpersonalcontributionsforpaymentfromĻretirementplansandexcludedonly10%ofanysuchpayment.ņņSeeóóPub.L.No.88664,šš1,78Stat.Š   	 ,`'8   Š1094(1964).However,the1964legislationpreservedthisrecoupmentfeature,i.e.,exclusionfromĻcountableincomeofpersonalcontributionstopublicorprivateretirementplans,foreligibleĻindividuals.ņņIdóó.,šššš10,11(b),78Stat.1096.Š   	 Š   Šą     ąThesecondtypeofpensionprogramisthe"section306"pension.ThattermappliestotheĻpensionprogramasitexistedafterPublicLawNo.88664becameeffectiveonDecember31,1964,Ļuntilthe"improved"pensionprogramcameintobeingonDecember31,1978,whentheVSPIAĻbecameeffective.TheVSPIAputintoeffectthethirdtypeofpension,"improved"pension.VSPIA,Ļņņsupraóó.However,section306oftheVSPIAgrandfatheredcertainprovisionsthathadbeenŠ   	 Ų	   ŠapplicabletoveteransinreceiptofpensiononDecember31,1978,forthosepensionrecipientswhoĻchosenottogointothe"improved"pensionprogram.Pub.L.No.95-588,šš306(a),92Stat.2508.ĻAccordingtotheSecretary,manybeneficiarieschosetostaywithsection306becausethereareĻfewerincomeexclusionsundertheimprovedpensionprogram.Secretary'sBrief(Br.)at5.TheĻVSPIAalsocontinued"oldlaw"pensionforveteranswhocontinuouslymaintainedtheireligibilityĻforthatpensionprogram,thatis,thoseindividualsinreceiptofpensiononDecember31,1964,whoĻhadneveroptedoutofthatprogramandhadneverexceededtheincomelimitsfor"oldlaw"pensionĻsoastoloseeligibility.Pub.L.No.95-588,šš306(b)(2),92Stat.2509.BecauseMr.KeenappliedĻforandreceivednonserviceconnectedpensionin1971,andwascontinuingtoreceivethatpensionĻonDecember31,1978(whenthelawcreating"improved"pensionbecameeffective),hequalifiedĻasasection306pensioner.R.at44.Ģą     ąSection306(a)(2)providesthatbeneficiaries,suchasMr.Keen,whodidnotelecttoreceiveĻimprovedpensionwouldcontinuetoreceivepensionattherateineffectatthetimetheprogramwasĻphasedout,December31,1978,solongastheirannualcountableincomedoesnotexceedtheannualĻincomelimitationthatissetbystatuteeachyearforrecipientsofthattypeofpension.Pub.L.ĻNo.95588,šš306(a)(2),(b)(3).However,ifthecountableincomeofasection306pensionĻrecipienteverexceedstheincomelimitationestablishedforagivenyear,thatpersonisprecludedĻfromestablishingentitlementunderanyotherpensionprogramexcepttheimprovedpensionĻprogram.ņņSeeBonev.Brownóó,9Vet.App.446,44950(1996)(citing38C.F.R.šš3.960,andfindingŠ   	 @)$4   Šā
    
 āregulation"entirelyconsistentwith[section306of]the1978Act").Š   	 Ø*ų%6   Šą     ąUndertheprovisionsforsection306pensions,countableannualincomeisdeterminedbyĻā
    
 ātheamountofincomereceivedduringthecalendaryearfromJanuary1throughDecember31ofanyĻgivenyear.38C.F.R.šš3.252(c)(1998).IncomeisgenerallydefinedaspaymentsofanykindorĻfromanysource,unlessspecificallyexcluded,ņņseeóó38U.S.C.šš1503;38C.F.R.šš3.260(1998).ByŠ   	 č8   Šregulation,"[i]ncomeofthespousewillbedeterminedundertherulesapplicabletoincomeoftheĻclaimant."38C.F.R.šš3.262(b)(1998).Theincomeofasection306pensionrecipient'sspouseisĻdefinedascountableincome,exceptfortheamountofthespousalincomeexclusionprovidedunderĻ38C.F.R.šš3.262(b)(2),ortheactualamountofspousalincomewhereitisgreaterthantheĻ"standard"incomeexclusionforthatyearandfailuretoexcludethegreateramountwouldworkaĻhardshipontheveteran.ņņIdóó.TheSecretarypointsoutthattheBVAexcludedMrs.KeenššsactualŠ   	 XØ   Šearnedincomeof$6,734.08fromcountableincomefor1992,andhadexcludedherearnedincomeĻeachyearundertheregulationsapplicabletosection306pensions.Secretary'sBr.at89.Ģą     ąInsupportofitsdecisionthatMr.Keen'scountableincomefor1992exceededthelimitforĻsection306pensionrecipients,theBVAcited38C.F.R.šš3.262(e)(1)(1998).ThatprovisionisasĻfollows:ĢÓ         Óą8     ąņņą    `	 ąProtectedpensionóó.Exceptasprovidedinthisparagraph(e)(1),effectiveŠ   	 Č   ŠJanuary1,1965,indeterminingincomeforpensionpurposesunderlawsineffectonĻJune30,1960,10percentoftheretirementpaymentsreceivedbyaveteran,survivingĻspouse,orchildwillbeexcluded.Theremaining90percentwillbeconsideredĻincomeasreceived.Wheretheretirementbenefitisbasedontheclaimant'sownĻemployment,paymentswillnotbeconsideredincomeuntiltheamountoftheĻclaimant'spersonalcontribution(asdistinguishedfromamountscontributedbytheĻemployer)hasbeenreceived.Thereafter,the10percentexclusionwillapply.Š    Š Š   ŠĢÓ         Ó38C.F.R.šš3.262(e)(1).Subparagraph(e)(1)statesanexceptiontothegeneralrule(that90%ofĻretirementpaymentsmustbeincludedasincome)forindividualsinreceiptof"oldlaw"protectedĻpension,thefirsttypediscussedabove.ņņId.óó;ņņseealsoóó38C.F.R.šš3.1(v)(definingoldlawpensionŠ   	 %X +   Šasthatunder"disabilityanddeathpensionprogramsthatwereineffectonJune30,1960....Ļprotectedundersection9(b)oftheVeteran's[sic]PensionActof1959(Pub.L.[No.]86211,73ĻStat.432)").Onitsface,therefore,theregulationprovidesthat,forcertainqualifyingindividuals¼"oldlaw"protectedpensionrecipientspersonalcontributionstoretirementfundswillnotbeĻcountedasincomeuntilfullyrecouped,afterwhicha10%exclusionwillapply.ThissubparagraphŠ   	 ,`'5   Šaddressesretirementpaymentstoa"veteran,ņņsurvivingóóspouse,orchild,"butdoesnotlisttheŠ   	 °      ŠcategorytowhichMrs.Keenbelongs,thatis,thelivingspouseofalivingveteran.ņņSeeóó38C.F.R.Š   	 h   Šššņņóó3.262(e)(1)(emphasisadded).Š   	 Š   Šą     ąOntheotherhand,subsection(e)(2)ofsection3.262isasfollows:ĢÓ         Óą8     ąą    `	 ąņņPension;Pub.L.86211óó.Exceptasprovidedinthissubparagraph,effectiveŠ   	 P
    ŠJanuary1,1965,indeterminingincomeforpensionpurposes,underPub.L.[No.]Ļ86211(73Stat.432),10percentoftheretirementpaymentsreceivedbyaveteran,ņņŠ   	 0
   Štheveteran'sspouseóó,survivingspouse,orchildwillbeexcluded.Theremaining90Š   	  p   Špercentwillbeconsideredincomeasreceived.WhereapersonwasreceivingorĻentitledtoreceivepensionandretirementbenefitsbasedonhisorherownĻemploymentonDecember31,1964,theretirementpaymentswillnotbeconsideredĻincomeuntiltheamountoftheclaimant['s]personalcontributions(asdistinguishedĻfromamountscontributedbytheemployer)hasbeenreceived.Thereafterthe10Ļpercentexclusionwillapply.Š    Š Š   ŠĢÓ         Ó38C.F.R.šš3.262(e)(2)(emphasisadded).Subparagraph(e)(2)isapplicabletoMr.KeenfortwoĻreasons:itistheprovisionapplicabletosection306pensionrecipients,anditpertainstoretirementĻpaymentsreceivedbyalivingveteran'sspouse.ņņIdóó.;seealso38C.F.R.šš3.1(u)("ņņSection306Š   	 pĄ   ŠpensionóómeansthedisabilityanddeathpensionprogramsineffectonDecember31,1978,whichŠ   	 Ų(   ŠaroseoutofPub.L.[No.]86211;73Stat.432."(emphasisinoriginal)).TheapplicableĻsubparagraph,likesubparagraph(e)(1),providesalimitedrecoupmentexclusionfromearnedĻincomeforonecategoryofsection306pensionrecipients,those"receivingorentitledtoreceiveĻpensionandretirementbenefitsbasedonhisorherownemploymentonDecember31,1964."38ĻC.F.R.šš3.262(e)(2).Ģą     ąMr.Keendoesnotdisputepaymentof$10,642.48toMrs.Keenduring1992,butarguesthatĻthepayoutwasearnedincomepaidtohisspouse,excludableunder38C.F.R.šš3.262(b)(2)ontheĻbasisthatitwasreportedasincome(andexcluded)duringtheyearswhileMrs.Keenwasemployed.ĻņņSeeóóAppellant'sBr.at79.Theappellantfurtherarguesthat38C.F.R.šš3.262(e),whichcontainsŠ   	 %Š +   Štheprovisionsgoverningretirementbenefits,doesnotrequireinclusionoflumpsumpayoutsofĻaggregatedamountsofmoney,contributedbythespousefromherincomeovertheyears,andĻreportedcontemporaneouslytoVA.Appellant'sBr.at1314n.10.Accordingtohim,thelumpsumĻpayoutwasnotanemployerconferredbenefit,butareturnofwagespreviouslyheld.ņņIdóó.Š   	  +p&3   Šą     ąTheSecretaryrespondsthattheBVAproperlycharacterizedthelumpsumpayoutasaĻretirementbenefit.Secretary'sBr.at4.Itistruethat,astheSecretarypointsout,thisCourthasheldĻthatreceiptofalumpsumretirementbenefitcouldbeconsideredasincomeinonecalendaryearforĻthepurposeofdeterminingwhetheraclaimanthasexceededthemaximumallowableincome,evenĻthoughpaymentwasrenderedforservicesovermanyyearsofemployment.ņņHermogenesv.Brownóó,Š   	 P
    Š9Vet.App.75,7677(1996).However,inņņHermogenesóó,theretirementpaymentwasspecificallyŠ   	 ø
   Šidentifiedas"gratuitybenefitpayments,"ņņidóó.at76,andthatopiniondoesnotaddressretirementŠ   	  p   Špaymentsthatarepurelyareturnofaggregatedpaymentsfromwages.Here,thepartiesagreethatĻthepaymenttotheappellant'sspousewasonconsiderationofherretirement;however,theappellantĻhasconsistentlymaintainedthatthelumpsumwas,infact,areturnofhisspouse'scontributionsĻfromherearnedincome.AlthoughtheBVAacknowledgedthiscontention,iterroneouslyreliedĻupon38C.F.R.šš3.262(e)(1)asauthorityforitsdecisiontoexcludeonly10%ofthepayout,failedĻtomakeafactualdeterminationconcerningthesourceoftheretirementpayment,anddidnotaddressĻtheeffect,ifany,ofthelanguagethatappearsinbothsubparagraphs(e)(1)and(e)(2)ofthatĻsubsectionwhichexcludesascountableincomeretirementpaymentstocertaincategoriesofĻ"claimant"wherethosepaymentsareactuallyadirectreturnofcontributionsfromearnedincome.ĻR.at5,8.(Undersection3.262(b),ņņseesupra,óóincomeofaclaimant'sspouseistreatedundertheŠ   	 0    Šrulesapplicabletoincomeoftheclaimant.)Ģą     ąOurcolleague,concurringintheresult,wouldholdtheBVA'sapplicationofsubparagraphĻ(e)(1)tobeharmlesserror,butwouldneverthelessremandonanotherground.However,onthisĻrecord,wecannotagree.TheSecretary'sfailuretofindtheunderlyingfactscalledforbyhisĻregulationsandtoapplytheoperativelanguageoftheregulationstothesefactsmakesitimpossibleĻtodeterminethattheerrorwasharmless.ņņSeeóó38U.S.C.šš7261.Š   	  #š,   Šą     ąMoreover,inhisbriefarguingforaffirmanceoftheBVA'sdecision,theSecretarycitesaĻprecedentialopinionoftheVAGeneralCounsel(GC),issuednearlyayearaftertheBVAdecisionĻhereonappeal,whichwouldtreatdisbursementsfromIndividualRetirementAccounts(IRAs)asĻcountableincomesubjecttothe10%exclusionforsection306pensionpurposes.Secretary'sBr.Ļat8;VAGen.Coun.Prec.197(Jan.8,1997)(Secretary'sBr.atApp.II).TheSecretaryĻcharacterizestheseIRAsas"essentiallynonemployerfundedretirementplans."Secretary'sBr.atŠ   	 ,`'8   Š8.AstheSecretarypointsout,theprecedentialopinionsoftheVAGCarebindingontheBVA.ņņId.óó,Š   	 °      Šņņcitingóó38U.S.C.šš7104(c).BecausetheJanuary8,1997,VAGCopinionwas,however,issuedŠ   	 h   ŠelevenmonthsaftertheBVAdecisionhereonappeal,theBVAcouldnothaverelieduponitorĻapplieditsanalysisinissuingitsFebruary15,1996,decision.Lacking,forexample,isafactualĻfindingbytheBVAthatMrs.Keen'sretirementaccountswereIRAs.Accordingly,theCourtdoesĻnotaddressthemeritsoftheVAGCopinion.ņņSeeNaglerv.Derwinskióó,1Vet.App.297,30607Š   	 ø
   Š(1991)(Court,createdunderArticleI,lackspowertoissuedeclaratoryjudgments).Moreover,ifĻtheapplicableregulationsontheirface,orasappliedbyVAbeforetheVAGC'sprecedentialopinionĻwasissued,hadofferedabroaderexclusionofpaymentsfromemployeefundedretirementplans,Ļthemorefavorableconstructionmustapply,unlesscontrarytolegislativeauthority.ņņSeeóóņņKarnasŠ   	 XØ   Šv.Derwinskióó,1Vet.App.308(1991).Š   	 Ą   Šą     ąTheCourtisconstrainedtonote,however,thattheVAGCprecedentialopinionfailstoĻaddressthelanguageintheregulationthatappearstoexcludeforatleastsomecategoriesofĻclaimantspersonalcontributionstoretirementfunds.TheCourtnotesthat38C.F.R.šš3.262(e)(1)Ļand(e)(2)havenotbeenamendedsincetheVAGCopinionwasissued,andtheVAGCopiniondoesĻnotcitetoanylegislationmorerecentthanthe1978VPSIA.Thecurrentversionsof38C.F.R.Ļšš3.262(e)(1)and(e)(2)bothcontinuetocontainlanguagepurportingtoexcludefromincomeĻ"claimantpersonalcontributions"topensionandretirementbenefitplansforatleastcertainĻcategoriesofpensionrecipients.Ģą     ąOnthisrecordandonthesepleadings,thiscaseisunripefordispositivejudicialreview,andŠ   	 hø&   Šremandisnecessary.BothlegalandfactualissuesremaintobeaddressedbytheSecretary.OnĻremand,theBVAistoapplytheappropriatesubparagraphofsection3.262toMrs.Keen'sretirementĻpayout.Inaddition,theBVAistoaddresswhetherthereasoningcontainedinVAGen.Coun.Prec.Ļ197,issued11monthsaftertheBVAdecisionhereonappeal,neverthelessstatestheSecretary'sĻconstructionofsubparagraph(e)(2)forthetypeofretirementpaymentMrs.Keenreceivedin1992.ĻņņSeeóóņņHodgev.Westóó,155F.3d1356,1361(Fed.Cir.1998);ņņGilpinv.Westóó,155F.3d1353(Fed.Cir.Š   	 Ų'(#2   Š1998)(CourtofVeteransAppealsgivesdeferencetoregulatoryconstructionofstatutethatisĻadoptedbySecretary).TheSecretarymustinitiallyresolvethisconflictinthetimecontextoftheĻapplicablestatutesandregulationsatthetimeoftheBVAdecisionhereonappeal,beforetheVAGCŠ   	 ,`'8   Šopinionwasissued,althoughasnotedabove,therelevantlanguageinsubparagraphs(e)(1)andĻ(e)(2)hasnotaltered.FurtherfactualfindingsarerequiredconcerningthesourceoftheretirementĻfundspaidtoMrs.Keenin1992,andwhethershebelongstoanycategoryofpersontowhomaĻrecoupmentexclusionapplies.ņņSeeóó38C.F.R.šš3.262(e)(2).TheSecretaryacknowledgeserrorsinŠ   	 č8   ŠarithmeticwhichtheBVAandtheROmadeinthecalculationofincome,butarguesthattheseĻdiscrepanciesareminorandthattheircorrectionwouldnothavechangedtheBVA'sconclusionthatĻtheveteranššscountableincomeexceededthesection306limitsfor1992.Secretary'sBr.at10;ņņseeóóŠ   	  p   Š38U.S.C.šš7261(b)(ruleofprejudicialerror).Onreadjudication,theSecretarywillhavetheĻopportunitytocorrectthecalculations,aswellasaddresstheissuesofstatutoryandregulatoryĻinterpretationraisedonthisrecord.ņņSeeTuckerv.Westóó,11Vet.App.369,374(1998)(remandŠ   	 XØ   ŠnecessarytopermitBoardtomakerequireddeterminationsundercorrectlegalstandards);ņņseealsoŠ   	 Ą   Šóó38U.S.C.šš7104(d)(1);ņņAlldayv.Brownóó,7Vet.App.517,527(1995)(BoardrequiredtoprovideŠ   	 (x   ŠwrittenstatementofreasonsorbasesforfindingsandconclusionsonallmaterialissuesoffactandĻlawpresentedonrecord;statementmustbeadequatetoenableclaimanttounderstandprecisebasisĻforBoard'sdecision,aswellastofacilitatejudicialreview);ņņGilbertv.Derwinskióó,1Vet.App.49,Š   	 `°   Š57(1990).ĢĢą@    6 ģ ąņņIII.CONCLUSIONóóŠ   	 č"   Šą     ąTheBVAdecisionisVACATED,andthematterREMANDEDforreadjudication.ĢĢń {ńą     ąKRAMER,ņņJudgeóó,concurringintheresult:Ō @  X^= X X) X^= ŌAlthoughIagreewiththemajoritythattheŠ   	 Š  (   ŠBoard'slegalandfactualdeterminationsareinadequate,myviewofthenecessarydeterminationsĻtobemadeuponremandissomewhatdifferent.ĢĢÓ   ÓņņI.óóŠ   	 p&Ą!0   ŠÓ  ¦W   Óą     ąInApril1971,theappellantwasawardedaVApension.R.at4445.InDecember1992,Ļhesubmitteda"Section306EligibilityVerificationReport"(EVR),whereintheappellantreported,Ļinteralia,thatin1992hisspousehadreceived$10,642.48froma"cashpayoutontworetirementĻplans."R.at88.Inresponsetothequestion,"Didanyincomechange...duringthepast12Š   	 ,`'8   Šmonths,"theappellantansweredyesandnotedthat"wages"hadincreasedinJune1992becausehisĻ"wiferetired."R.at88.AVAregionaloffice(RO),inJanuary1993,thenterminatedtheĻappellant'ssection306pensionbenefits,effectiveJanuary1,1993,statingthathiscountableincomeĻexceededtheincomelimitforpensioneligibility.R.at92.InFebruary1993,theappellantĻsubmittedaNoticeofDisagreement,stating,inessence,thathisspouse'sincomeshouldnothaveĻbeenincludedinhiscountableincome.R.at94.AStatementoftheCasewasissued,andtheĻappellantsubmittedasubstantiveappeal,stating,interalia,that"the'payout'income"was"simplyĻapayoutofwageswithheldfrompreviousearnings."R.at101.Ģą     ąIntheFebruary15,1996,BVAdecisionhereonappeal,theBoardnotedthatin1992theĻappellant'sspousehadreceived"retirementincome"intheamountofŌ# )  X^= X X@ X^=·V  # ŌŌ @  X^= X X) X^= Ō$10,642.48Ō# )  X^= X X@ X^=;]  # ŌŌ @  X^= X X) X^= Ō.R.at8.TheŠ   	 XØ   ŠBoardstatedthat"[a]lthoughthe[appellant]contendsthatthissumwasnotretirementincome,itĻwasclearly,evenbythe[appellant's]account,money[hisspouse]receivedasaconsequenceofĻretiring."R.at8.TheBoardthendeterminedthat,pursuantto38C.F.R.šš3.262(e)(1),10%ofthatĻsumshouldbeexcludedfromtheappellant'scountableincomefor1992.R.at8.AfterperformingĻvariouscalculations,theBoardconcludedthattheappellant'scountableincomein1992wasĻexcessiveforpurposesofsection306pensioneligibilityandthathispensionbenefitshadbeenĻproperlyterminated,effectiveJanuary1,1993.R.at6,9.Thisappealfollowed.Ģą     ąOnappeal,theappellant,throughcounsel,contendsthatthe$10,642.48receivedbytheĻappellant'sspousein1992constitutedareturnofamountspreviouslywithheldfromhisspouse'sĻsalaryŌ# )  X^= X X@ X^=]  # ŌŌ @  X^= X X) X^= Ōandthereforeshouldbecategorizedas"earnedincome,"ratherthanasaretirementbenefit,Š   	 hø&   ŠbecauseŌ# )  X^= X X@ X^=Za  # ŌŌ @  X^= X X) X^= Ō38C.F.R.šš3.262(e),whichgovernsretirementbenefits,isonlyapplicableto"employerŠ   	 Š  (   Špaid,nonsalarypayments."Ō# )  X^= X X@ X^=b  # ŌŌ @  X^= X X) X^= ŌAppellant'sBrief(Br.)at7,9.TheappellantthuscontendsthattheŠ   	 8"*   Špaymentsshouldhavebeenexcludedfromhis1992countableincomepursuantto38C.F.R.Ļšš3.262(b)(2)andthatsuchexclusionwouldhavecausedhis1992countableincometobe"wellĻbelowthemaximumincomeallowedfor[section]306pensioneligibility"Ō# )  X^= X X@ X^=äb  # ŌŌ @  X^= X X) X^= ŌŌ# )  X^= X X@ X^=d  # ŌŌ @  X^= X X) X^= ŌAppellant'sBr.at7,9,Š   	 p&Ą!0   Š13.TheappellantfurtherpointstoseveralerrorsmadebytheBoardincalculatinghiscountableĻincome.Appellant'sBr.at1314.Ō# )  X^= X X@ X^=Éd  # ŌŌ @  X^= X X) X^= ŌŠ   	 @)$4   Šą     ąTheSecretaryconcedesthattheBoardmadeseveralminorerrorsincalculatingtheĻappellant'scountableincomefor1992,butcontendsthatsucherrorswereharmless.Specifically,Š   	 ,`'8   ŠtheSecretarynotesthattheBoardappliedtheincorrectfigureforthemaximumallowableincomeĻin1992.Secretary'sBr.at56.TheSecretaryfurtherconcedesthattheBoardcommittedminorĻfactualerrorswithregardtotheamountofSocialSecuritybenefitstobeincludedintheappellant'sĻcountableincomefor1992.Secretary'sBr.at7.However,withregardtothe$10,642.48paymentĻreceivedbytheappellant'sspousein1992,theSecretaryaversthattheBoard"correctlyĻcharacterizedthissumasretirementbenefitssubjectonlytoa10[%]exclusionunder38C.F.R.Ļšš3.262(e)"because,underņņHermogenesv.Brownóó,9Vet.App.75(1996),andVAGeneralCounselŠ   	  p   ŠPrecedentOpinion197(Jan.8,1997),any"essentiallynonemployerfundedretirementplan[],"Ļincludingalumpsumdistribution,isaretirementbenefitgovernedby38C.F.R.šš3.262(e).ĻSecretary'sBr.at78.Insum,theSecretaryaversthat,aftercorrectingtheminorfactualerrorsmadeĻtheBoard,theappellant'scountableincomestillwouldbeexcessiveforpurposesofsection306Ļpensioneligibility.ĢĢÓ   ÓņņII.óóŠ   	 ųH   ŠÓ  +k   Óą     ąInthepresentcase,thepensioninquestionisa"section306"pension.ņņSeeóóPub.L.No.Š   	 `°   Š95-588,šš306(a)(2),92Stat.2497,2508(1978);ņņLewisv.Brownóó,8Vet.App.287,288(1995);Š   	 Č   Š38C.F.R.šš3.1(u)(1998).Eligibilityforasection306pensionturnsonwhetherthepensioner'sĻannualor"countable"incomeiswithinlimitssetbystatuteandregulation.ņņSeeóó38U.S.C.šššš1521,Š   	 č"   Š1522;38C.F.R.šššš3.3(a)(2)(vi),3.26(a),3.252(b)(1998).Indeterminingthepensioner'sannualĻincome,"[p]aymentsofanykindorfromanysourcewillbecountedasincomeunlessspecificallyĻexcluded.Incomewillbecountedforthecalendaryearinwhichitisreceived."38C.F.R.Ļšš3.252(c);ņņseealsoóó38C.F.R.šš3.260."Whereaveteranandspousearelivingtogether,theseparateŠ   	 8"*   Šincomeofthespousewillbeconsideredastheveteran'sincomeasprovidedinšš3.262(b)."Ļ38C.F.R.šš3.252(b);ņņseealsoóó38C.F.R.šš3.262(bŌ# )  X^= X X@ X^=æe  # ŌŌ @  X^= X X) X^= Ō)Ō# )  X^= X X@ X^=»o  # ŌŌ @  X^= X X) X^= Ō(Ō# )  X^= X X@ X^=žo  # ŌŌ @  X^= X X) X^= Ōincomeattributabletopensioner'sspouseŌ# )  X^= X X@ X^=Bp  # ŌŌ @  X^= X X) X^= ŌisŠ   	 %X .   Šcalculated"undertherulesapplicabletoincomeoftheclaimant").Ō# )  X^= X X@ X^=­p  # ŌŌ @  X^= X X) X^= ŌAsrelevanttotheincomeoftheŠ   	 p&Ą!0   Šspouse,38C.F.R.šš3.262(b)(2)provides:ĢÓ        ÓŅ  ° ŅŅ   ° ŅWhere[asection306]pensionispayable...toaveteranwhoislivingwithaspouseĻtherewillbeincludedasincomeoftheveteranallincomeofthespouseinexcessofĻwhicheveristhegreater,theamountofthespouseincomeexclusion...orthetotalŠ   	  +p&6   Šearnedincomeofthespouse,whichisreasonablyavailabletoorfortheveteran,Ļunlesshardshiptotheveteranwouldresult.ĢĢŅ   °ķq   ŅŅ  °ßq   ŅÓ       Ķq   ÓInaddition,pursuantto38C.F.R.šššš3.262(e)(1)(notapplicabletosection306pensions)andĻ3.262(e)(2)(applicabletosection306pensions),90%ofretirementpaymentsreceivedbyaveteran'sĻspousewillbeincludedintheveteranpensioner'scountableincome(andthus10%ofsuchpaymentsĻwillbeexcluded).However,sections3.262(e)(1)and3.262(e)(2)Ō# )  X^= X X@ X^=Jq  # ŌŌ @  X^= X X) X^= ŌbothcontainrecoupmentŠ   	 ø	   Šprovisions,pursuanttowhichretirementbenefitsattributabletopersonalcontributionsareexcludedĻfromcountableincome.Forpurposesofšš3.262(e)(1),therecoupmentprovisionapplies"[w]hereĻtheretirementbenefitisbasedontheclaimant'sownemployment."TherecoupmentprovisionĻcontainedinšš3.262(e)(2),ontheotherhand,isapplicableonly"[w]hereapersonwasreceivingorĻentitledtoreceivepensionandretirementbenefitsbasedonhisorherownemploymentonĻDecember31,1964."Ģą     ąInthedecisiononappeal,theBoardimplicitlydeterminedthatthe$10,642.48receivedbyĻtheappellant'sspousein1992wasnotearnedincomewithinthemeaningof38C.F.R.šš3.262(b)(2)Ļandexplicitlydeterminedthatthepaymentsconstitutedretirementbenefits,which,pursuanttoĻ38C.F.R.šš3.262(e)(1),areincludableintheappellant'scountableincome,subjectonlytoa10%Ļexclusion.R.at8.Forpurposesofthisparagraph,IwillassumethattheBoard'simplicitĻdeterminationwithrespectto38C.F.R.šš3.262(b)(2)iscorrect(ņņbutseeóódiscussionņņinfraóóatņņ__,óóslipŠ   	 č!   Šop.at__)andthattheonlymattertobeaddressedisthepropertreatmentofretirementbenefitsĻreceivedbytheappellant'sspouse.Inthatcontext,althoughIagreewiththemajoritythat38C.F.R.Ļšš3.262(e)(2),ratherthan38C.F.R.šš3.262(e)(1),istheappropriateprovisionwhendealingwithĻasection306pensionthetypeofpensionatissueinthepresentcaseIbelievethat,onthefactsofĻthiscase,anyerrorcommittedbytheBoardinapplyingtheincorrectsectionwasnonprejudicial.ĻThatisbecausetheonlypertinentdifferencebetweenšš3.262(e)(1)andšš3.262(e)(2)isthecriteriaĻforapplicationoftherecoupmentprovisions,andtheappellanthasnotsatisfiedanysuchcriteria.ĻAlthoughtherecoupmentprovision,whichwasnotaddressedbytheBoard,Ō# )  X^= X X@ X^=uu  # ŌŌ @  X^= X X) X^= Ōcontainedin38C.F.R.Š   	 Ų'(#1   Ššš3.262(e)(1),applies,withoutotherlimitation,"wheretheretirementbenefitisbasedontheĻclaimant'sownemployment,"thatprovision,asindicatedabove,isnotapplicabletoasection306Ļpension.Ō# )  X^= X X@ X^=}}  # ŌŌ @  X^= X X) X^= ŌMoreover,therecoupmentprovisionof38C.F.R.šš3.262(e)(2)isapplicableonly"[w]hereŠ   	 ,`'7   Šapersonwasreceivingorentitledtoreceive[VA]pensionņņandóóretirementbenefitsbasedonhisorŠ   	 °      ŠherownemploymentonDecember31,1964"(emphasisadded).ņņSeeóóPub.L.No.88664,šš11(b),Š   	 h   Š78Stat.1094,1096(1964)(amendmenteliminatingrecoupmentprovision"shallnotapplytoanyĻindividualreceivingpensiononDecember31,1964,underchapter15ofsaidtitle,orsubsequentlyĻdeterminedentitledtosuchpensionforsaidday,untilhiscontributionshavebeenrecoupedunderĻtheprovisionofthatparagraphineffectonDecember31,1964").Consequently,becausetheĻpensioner,interalia,musthavebeenreceivingorsubsequentlydeterminedentitledtoreceiveaņņVAŠ   	  p   ŠpensionóóonDecember31,1964,inorderfortherecoupmentprovisionof38C.F.R.šš3.262(e)(2)toŠ   	 Ų	   Šbeapplicable;because,inthepresentcase,theappellant'sVApensiondidnotcommenceuntil1971;ĻandbecausenoavermenthasbeenmadethathewasentitledtoreceivehisVApensionasofĻDecember31,1964,therecoupmentprovisionofšš3.262(e)(2)simplyisnotapplicable.Thus,withĻrespecttoanyretirementbenefitsreceivedbythepensioner'sspouse,thepensionerwouldbeĻpermittedtoexcludeonly10%ofthepayments.Consequently,theBoard'sapplicationofĻšš3.262(e)(1)anditsfailuretoconsidertherecoupmentprovision,atmost,constitutedharmlessĻerror.Nevertheless,InotethatiftheappellantweretoaveronremandthathewasentitledtoreceiveĻhisVApensiononDecember31,1964,theBoardwouldberequiredtoaddressthemeaningoftheĻ"entitledtoreceive"languageof38C.F.R.šš3.262(e)(2).ņņCf.Carpenterv.Goberóó,11Vet.App.140,Š   	 0    Š14547(1998)(interpretingthe"entitledtoreceive"languagecontainedin38U.S.C.šš1318(b)).ĻFurther,iftheappellantwerefoundentitledtoreceiveaVApensionasofDecember31,1964,itĻwouldbenecessaryfortheBoardtoaddresswhethertherequirementinšš3.262(e)(2)that"ņņapersonóóŠ   	 hø&   ŠwasreceivingorentitledtoreceivepensionandretirementbenefitsbasedonņņhisorherownŠ   	 Š  (   ŠemploymentóóonDecember31,1964,"precludeseligibilityforrecoupmentwheretheņņveteranóówasinŠ   	 8"*   ŠreceiptoforentitledtoreceiveaVApensionandtheņņveteran'sspouseóówasreceivingretirementŠ   	  #š,   Šbenefits.38C.F.R.šš3.262(e)(2)(emphasisadded).Ō# )  X^= X X@ X^=¹~  # ŌŌ @  X^= X X) X^= ŌŠ   	 %X .   Šą     ąAlthough,basedontheabove,IbelievethattherecoupmentprovisionisinapplicableintheĻpresentcase,andthatremandisthusnotnecessarytoaddressthatprovision,thatisnottheendofĻtheinquiry.ThatisbecausetheBoarderredinfailingtoadequatelyaddresswhetherthepaymentsĻreceivedbythepensioner'sspousewhichwereincludedinthepensioner'scountableincome,Ļresultingintheterminationofhissection306pensionbenefitsshouldhavebeencharacterizedasŠ   	 ,`'8   Šearnedincomeofthespouse,whichwouldbegovernedby38C.F.R.šš3.262(b)(2),ratherthanasĻaretirementbenefit,governedby38C.F.R.šš3.262(e)(2).TheonlyevidenceofrecordfromwhichĻadeterminationcouldbemadeastotheń{ńń uńńqńcońqńńsńrrectńsńńuńń {ńńsńpaymentńsńńvń'scorrectńvńń{ńń wńńvńyńvńńwńń {ńcategoryń{ńń xńńxńń tńthepaymentńtńń xńbelongsńxńń {ńconsistssolelyofconflictingĻstatementsmadebytheappellant.InmakingitsdeterminationthatthepaymentsreceivedbytheĻpensioner'sspousewereretirementbenefits,theBoardapparentlyreliedontheappellant'sĻcharacterizationofthepaymentsinhisDecember1992EVRas"cashpayoutontworetirementĻplans"thatwerereceivedbecausehis"wiferetired."R.at88.TheBoard,however,didnotaddressĻtheappellant'scharacterizationofthepayments,inthesameEVR,as"wages"(R.at88),nordidtheĻBoardaddresshissubsequentstatementthatthepaymentswere"simplyapayoutofwageswithheldĻfrompreviousearnings"(R.at101).ThepropercharacterizationofthepaymentsreceivedmayhaveĻasignificantbearingonwhetherthepensioner'scountableincomein1992exceededtheincomeĻlimitationsbecauseitappearsthat,under38C.F.R.šš3.262(b)(2),apaymentcharacterizedasearnedĻincomeofthespousemaybeexcludedfromtheappellant'scountableincome.Consequently,theĻBoardshouldhaveobtainedtheunderlyingdocumentationnecessarytomakeaproperdeterminationĻastothecharacterofthepaymentsandthenshouldhavemadeadetermination,supportedbyanĻadequatestatementofreasonsorbases,astotheappropriatecharacterizationofthepayments.ĻMoreover,inmyview,ifonremandtheBoardweretodeterminethatthepaymentsreceivedbytheĻappellant'sspouseconstitute"earnedincome"withinthemeaningofšš3.262(b)(2),theBoardshouldĻfurtheraddressthemeaningofthelanguagefromthissectionquotedabove,addressinginparticularĻwhetherthephrase"whichisreasonablyavailabletoorfortheveteran"modifiesthephrase"allĻincomeofthespouse"orrathermodifiesonly"thetotalearnedincomeofthespouse."TheBoardĻshouldfurtheraddress,withappropriatereferencestostatutoryorotherauthority,thebasisforanyĻexclusioncreatedbysuchlanguage.Ō# )  X^= X X@ X^=W  # Ōń{ńń|ńą     ąKRAMER,ņņJudgeóó,concurring:AlthoughIagreewiththemajoritythattheBoard'slegalandŠ   	 Š  (   Šfactualdeterminationsareinadequate,myviewofthenecessarydeterminationstobemadeuponĻremandissomewhatdifferent.ĢĢÓ   ÓņņI.óóŠ   	 p&Ą!0   ŠÓ  ģ   Óą     ąInApril1971,theappellantwasawardedVApension.R.at4445.InDecember1992,heĻsubmitteda"Section306EligibilityVerificationReport"(EVR),whereinhereported,interalia,thatĻin1992hisspousehadreceived$10,642.48froma"cashpayoutontworetirementplans."R.atĻ88.Inresponsetothequestion,"Didanyincomechange...duringthepast12months,"theŠ   	 ,`'8   Šappellantanswered"yes"andnotedthat"wages"hadincreasedinJune1992becausehis"wifeĻretired."R.at88.AVAregionaloffice(RO),inJanuary1993,thenterminatedtheappellant'sĻsection306pensionbenefits,effectiveJanuary1,1993,statingthathiscountableincomeexceededĻtheincomelimitforpensioneligibility.R.at92.InFebruary1993,theappellantsubmittedaNoticeĻofDisagreement,stating,inessence,thathisspouse'sincomeshouldnothavebeenincludedinhisĻcountableincome.R.at94.AStatementoftheCasewasissued,andtheappellantsubmittedaĻsubstantiveappeal,stating,interalia,that"the'payout'income"was"simplyapayoutofwagesĻwithheldfrompreviousearnings."R.at101.Ģą     ąIntheFebruary15,1996,BVAdecisionhereonappeal,theBoardnotedthatin1992theĻappellant'sspousehadreceived"retirementincome"intheamountof$10,642.48.R.at8.TheĻBoardstatedthat"[a]lthoughthe[appellant]contendsthatthissumwasnotretirementincome,itĻwasclearly,evenbythe[appellant's]account,money[hisspouse]receivedasaconsequenceofĻretiring."R.at8.TheBoardthendeterminedthat,pursuantto38C.F.R.šš3.262(e)(1),10%ofthatĻsumshouldbeexcludedfromtheappellant'scountableincomefor1992.R.at8.AfterperformingĻvariouscalculations,theBoardconcludedthattheappellant'scountableincomein1992wasĻexcessiveforpurposesofsection306pensioneligibilityandthathispensionbenefitshadbeenĻproperlyterminated,effectiveJanuary1,1993.R.at6,9.Thisappealfollowed.Ģą     ąOnappeal,theappellant,throughcounsel,contendsthatthe$10,642.48receivedbytheĻappellant'sspousein1992constitutedareturnofamountspreviouslywithheldfromhisspouse'sĻsalaryandthereforeshouldbecategorizedas"earnedincome,"ratherthanasaretirementbenefit,Ļbecause38C.F.R.šš3.262(e),whichgovernsretirementbenefits,isonlyapplicableto"employer¼paid,nonsalarypayments."Appellant'sBrief(Br.)at7,9.TheappellantthuscontendsthattheĻpaymentsshouldhavebeenexcludedfromhis1992countableincomepursuantto38C.F.R.Ļšš3.262(b)(2)andthatsuchexclusionwouldhavecausedhis1992countableincometobe"wellĻbelowthemaximumincomeallowedfor[section]306pensioneligibility."Appellant'sBr.at7,9,Ļ13.TheappellantfurtherpointstoseveralerrorsmadebytheBoardincalculatinghiscountableĻincome.Appellant'sBr.at1314.Ģą     ąTheSecretaryconcedesthattheBoardmadeseveralminorerrorsincalculatingtheĻappellant'scountableincomefor1992,butcontendsthatsucherrorswereharmless.Specifically,Š   	 ,`'8   ŠtheSecretarynotesthattheBoardappliedtheincorrectfigureforthemaximumallowableincomeĻin1992.Secretary'sBr.at56.TheSecretaryfurtherconcedesthattheBoardcommittedminorĻfactualerrorswithregardtotheamountofSocialSecuritybenefitstobeincludedintheappellant'sĻcountableincomefor1992.Secretary'sBr.at7.However,withregardtothe$10,642.48paymentĻreceivedbytheappellant'sspousein1992,theSecretaryaversthattheBoard"correctlyĻcharacterizedthissumasretirementbenefitssubjectonlytoa10[%]exclusionunder38C.F.R.Ļšš3.262(e)"because,underņņHermogenesv.Brownóó,9Vet.App.75(1996),andVAGeneralCounselŠ   	  p   ŠPrecedentOpinion197(Jan.8,1997),any"essentiallynonemployerfundedretirementplan[],"Ļincludingalumpsumdistribution,isaretirementbenefitgovernedby38C.F.R.šš3.262(e).ĻSecretary'sBr.at78.Insum,theSecretaryaversthat,aftercorrectingtheminorfactualerrorsmadeĻtheBoard,theappellant'scountableincomestillwouldbeexcessiveforpurposesofsection306Ļpensioneligibility.ĢĢÓ   ÓņņII.óóŠ   	 ųH   ŠÓ  ß¦   Óą     ąInthepresentcase,thepensioninquestionisa"section306"pension.ņņSeeóóPub.L.No.Š   	 `°   Š95-588,šš306(a)(2),92Stat.2497,2508(1978);ņņLewisv.Brownóó,8Vet.App.287,288(1995);Š   	 Č   Š38C.F.R.šš3.1(u)(1998).Eligibilityforasection306pensionturnsonwhetherthepensioner'sĻannualor"countable"incomeiswithinlimitssetbystatuteandregulation.ņņSeeóó38U.S.C.šššš1521,Š   	 č"   Š1522;38C.F.R.šššš3.3(a)(2)(vi),3.26(a),3.252(b)(1998).Indeterminingthepensioner'sannualĻincome,"[p]aymentsofanykindorfromanysourcewillbecountedasincomeunlessspecificallyĻexcluded.Incomewillbecountedforthecalendaryearinwhichitisreceived."38C.F.R.Ļšš3.252(c);ņņseealsoóó38C.F.R.šš3.260."Whereaveteranandspousearelivingtogether,theseparateŠ   	 8"*   Šincomeofthespousewillbeconsideredastheveteran'sincomeasprovidedinšš3.262(b)."Ļ38C.F.R.šš3.252(b);ņņseealsoóó38C.F.R.šš3.262(b)(incomeattributabletopensioner'sspouseisŠ   	 %X .   Šcalculated"undertherulesapplicabletoincomeoftheclaimant").AsrelevanttotheincomeoftheĻspouse,38C.F.R.šš3.262(b)(2)provides:ĢÓ        ÓŅ  ° ŅŅ   ° ŅWhere[asection306]pensionispayable...toaveteranwhoislivingwithaspouseĻtherewillbeincludedasincomeoftheveteranallincomeofthespouseinexcessofĻā
    
 āwhicheveristhegreater,theamountofthespouseincomeexclusion...orthetotalŠ   	  +p&6   Šearnedincomeofthespouse,whichisreasonablyavailabletoorfortheveteran,Ļunlesshardshiptotheveteranwouldresult.Ģā
    
 āĢŅ   °C¬   ŅŅ  °5¬   ŅÓ       #¬   ÓInaddition,pursuantto38C.F.R.šššš3.262(e)(1)(notapplicabletosection306pensions)andĻ3.262(e)(2)(applicabletosection306pensions),90%ofretirementpaymentsreceivedbyaveteran'sĻspousewillbeincludedintheveteranpensioner'scountableincome(andthus10%ofsuchpaymentsĻwillbeexcluded).However,sections3.262(e)(1)and3.262(e)(2)bothcontainrecoupmentĻprovisions,pursuanttowhichretirementbenefitsattributabletopersonalcontributionsareexcludedĻfromcountableincome.Forpurposesofšš3.262(e)(1),therecoupmentprovisionapplies"[w]hereĻtheretirementbenefitisbasedontheclaimant'sownemployment."TherecoupmentprovisionĻcontainedinšš3.262(e)(2),ontheotherhand,isapplicableonly"[w]hereapersonwasreceivingorĻentitledtoreceivepensionandretirementbenefitsbasedonhisorherownemploymentonĻDecember31,1964."Ģą     ąInthedecisiononappeal,theBoardimplicitlydeterminedthatthe$10,642.48receivedbyĻtheappellant'sspousein1992wasnotearnedincomewithinthemeaningof38C.F.R.šš3.262(b)(2)Ļandexplicitlydeterminedthatthepaymentsconstitutedretirementbenefits,which,pursuanttoĻ38C.F.R.šš3.262(e)(1),areincludableintheappellant'scountableincome,subjectonlytoa10%Ļexclusion.R.at8.Forpurposesofthisparagraph,IwillassumethattheBoard'simplicitĻdeterminationwithrespectto38C.F.R.šš3.262(b)(2)iscorrect(ņņbutseeóódiscussionņņinfraóóatņņ__,óóslipŠ   	 č!   Šop.at1213)andthattheonlymattertobeaddressedisthepropertreatmentofretirementbenefitsĻreceivedbytheappellant'sspouse.Inthatcontext,althoughIagreewiththemajoritythat38C.F.R.Ļšš3.262(e)(2),ratherthan38C.F.R.šš3.262(e)(1),istheappropriateprovisionwhendealingwithĻasection306pensionthetypeofpensionatissueinthepresentcaseIbelievethat,onthefactsofĻthiscase,anyerrorcommittedbytheBoardinapplyingtheincorrectsectionwasnonprejudicial.ĻThatisbecausetheonlypertinentdifferencebetweenšš3.262(e)(1)andšš3.262(e)(2)isthecriteriaĻforapplicationoftherecoupmentprovisions,andtheappellanthasnotsatisfiedanysuchcriteria.ĻAlthoughtherecoupmentprovision,whichwasnotaddressedbytheBoard,containedin38C.F.R.Ļšš3.262(e)(1),applies,withoutotherlimitation,"wheretheretirementbenefitisbasedontheĻclaimant'sownemployment,"thatprovision,asindicatedabove,isnotapplicabletoasection306Ļpension.Moreover,therecoupmentprovisionof38C.F.R.šš3.262(e)(2)isapplicableonly"[w]hereŠ   	 ,`'7   Šapersonwasreceivingorentitledtoreceive[VA]pensionņņandóóretirementbenefitsbasedonhisorŠ   	 °      ŠherownemploymentonDecember31,1964"(emphasisadded).ņņSeeóóPub.L.No.88664,šš11(b),Š   	 h   Š78Stat.1094,1096(1964)(amendmenteliminatingrecoupmentprovision"shallnotapplytoanyĻindividualreceivingpensiononDecember31,1964,underchapter15ofsaidtitle,orsubsequentlyĻdeterminedentitledtosuchpensionforsaidday,untilhiscontributionshavebeenrecoupedunderĻtheprovisionofthatparagraphineffectonDecember31,1964").Consequently,becausetheĻpensioner,interalia,musthavebeenreceiving,orsubsequentlybeendeterminedentitledtoreceive,Š   	  p   ŠņņVApensionóóonDecember31,1964,inorderfortherecoupmentprovisionof38C.F.R.šš3.262(e)(2)Š   	 Ų	   Štobeapplicable;because,inthepresentcase,theappellant'sVApensiondidnotcommenceuntilĻ1971;andbecausenoavermenthasbeenmadethathewasentitledtoreceiveVApensionasofĻDecember31,1964,therecoupmentprovisionofšš3.262(e)(2)simplyisnotapplicable.Thus,withĻrespecttoanyretirementbenefitsreceivedbythepensioner'sspouse,thepensionerwouldbeĻpermittedtoexcludeonly10%ofthepayments.Consequently,theBoard'sapplicationofĻšš3.262(e)(1)anditsfailuretoconsidertherecoupmentprovision,atmost,constitutedharmlessĻerror.Nevertheless,InotethatiftheappellantweretoaveronremandthathewasentitledtoreceiveĻVApensiononDecember31,1964,theBoardwouldberequiredtoaddressthemeaningoftheĻ"entitledtoreceive"languageof38C.F.R.šš3.262(e)(2).ņņCf.Carpenterv.Goberóó,11Vet.App.140,Š   	 0    Š14547(1998)(interpretingthe"entitledtoreceive"languagecontainedin38U.S.C.šš1318(b)).ĻFurther,iftheappellantwerefoundentitledtoreceiveVApensionasofDecember31,1964,itĻwouldbenecessaryfortheBoardtoaddresswhethertherequirementinšš3.262(e)(2)that"ņņapersonóóŠ   	 hø&   ŠwasreceivingorentitledtoreceivepensionandretirementbenefitsbasedonņņhisorherownŠ   	 Š  (   ŠemploymentóóonDecember31,1964,"precludeseligibilityforrecoupmentwheretheņņveteranóówasinŠ   	 8"*   ŠreceiptoforentitledtoreceiveVApensionandtheņņveteran'sspouseóówasreceivingretirementŠ   	  #š,   Šbenefits.38C.F.R.šš3.262(e)(2)(emphasisadded).Ģą     ąAlthough,basedontheabove,IbelievethattherecoupmentprovisionisinapplicableintheĻpresentcase,andthatremandisthusnotnecessarytoaddressthatprovision,thatisnottheendofĻtheinquiry.ThatisbecausetheBoarderredinfailingtoaddressadequatelywhetherthepaymentsĻreceivedbythepensioner'sspousewhichwereincludedinthepensioner'scountableincome,Ļresultingintheterminationofsection306pensionbenefitsshouldhavebeencharacterizedasŠ   	 ,`'8   Šearnedincomeofthespouse,whichwouldbegovernedby38C.F.R.šš3.262(b)(2),ratherthanasĻaretirementbenefit,governedby38C.F.R.šš3.262(e)(2).TheonlyevidenceofrecordfromwhichĻadeterminationcouldbemadeastowhichcategorythepaymentbelongsconsistssolelyofĻconflictingstatementsmadebytheappellant.InmakingitsdeterminationthatthepaymentsĻreceivedbythepensioner'sspousewereretirementbenefits,theBoardapparentlyreliedontheĻappellant'scharacterizationofthepaymentsinhisDecember1992EVRas"cashpayoutontwoĻretirementplans"thatwerereceivedbecausehis"wiferetired."R.at88.TheBoard,however,didĻnotaddresstheappellant'scharacterizationofthepayments,inthesameEVR,as"wages"(R.at88),ĻnordidtheBoardaddresshissubsequentstatementthatthepaymentswere"simplyapayoutofĻwageswithheldfrompreviousearnings"(R.at101).ThepropercharacterizationofthepaymentsĻreceivedmayhaveasignificantbearingonwhetherthepensioner'scountableincomein1992Ļexceededtheincomelimitationsbecauseitappearsthat,under38C.F.R.šš3.262(b)(2),apaymentĻcharacterizedasearnedincomeofthespousemaybeexcludedfromtheappellant'scountableĻincome.Consequently,theBoardshouldhaveobtainedtheunderlyingdocumentationnecessarytoĻmakeaproperdeterminationastothecharacterofthepaymentsandthenshouldhavemadeaĻdetermination,supportedbyanadequatestatementofreasonsorbases,astotheappropriateĻcharacterizationofthepayments.ņņSeeóó38U.S.C.šš7104(d)(1).Moreover,inmyview,ifonremandŠ   	 0    ŠtheBoardweretodeterminethatthepaymentsreceivedbytheappellant'sspouseconstitute"earnedĻincome"withinthemeaningofšš3.262(b)(2),theBoardshouldfurtheraddressthemeaningoftheĻlanguagefromthissectionquotedabove,addressinginparticularwhetherthephrase"whichisĻreasonablyavailabletoorfortheveteran"modifiesthephrase"allincomeofthespouse"orratherĻmodifiesonly"thetotalearnedincomeofthespouse."TheBoardshouldfurtheraddress,withĻappropriatereferencestostatutoryorotherauthority,thebasisforanyexclusioncreatedbysuchĻlanguage.ń|ń