BVA9501398 
DOCKET NO.  93-01 307     )       DATE
          )
          )

On appeal from the decision of the
Department of Veterans Affairs Regional Office in Fort Harrison,
Montana

THE ISSUE

Whether the reduction of improved pension benefits, effective
September 1, 1988, due to the receipt of AARP wages was proper.

REPRESENTATION

Appellant represented by: Montana Veterans Affairs
Division

ATTORNEY FOR THE BOARD

Susan S. Toth, Associate Counsel

INTRODUCTION

The veteran had active service from March 1944 to February 1946.

She has appealed an October 1992 determination of the Regional
Office (RO), whereby her pension benefits were reduced
retroactive to September 1, 1988.

The veteran has requested that her dependent daughter be
established as a dependent for improved pension purposes (see VA
Form 9 received in December 1992).  It also appears that the
veteran has requested that recovery of the overpayment be waived
(see notice of disagreement received in November 1992).  As these
issues are not inextricably intertwined with the issue presently
on appeal, they are referred to the RO for the appropriate
consideration.

REMAND

The appellant contends that the RO improperly reduced her
improved pension benefits.  She asserts that AARP earnings were
not included as countable income for Department of Veterans
Affairs' (VA) pension purposes prior to May 1990; therefore it is
unfair for the VA to reduce her benefits dating back to 1988.
She further asserts that AARP income should be excluded pursuant
to the provisions of 38 C.F.R. §§ 3.271 and 3.272 (1993).  It
appears that she is arguing that her earnings from AARP were paid
under the Older Americans Community Service Employment Act which
were excluded from income under § 3.272(k) until that regulation
was amended, effective January 21, 1992, to remove that program
from the cited regulations on the basis that it was not an ACTION
agency program, but rather was a Department of Labor Program.

At this point, it is not clear whether the AARP wages were paid
under any Federal Program.  Clarification of this point must be
done before appellate consideration can proceed.  Accordingly,
the Case is REMANDED back to the RO for the following action:

The RO should contact the AARP in order to
ascertain whether the claimant's wages were
paid under any State or Federal program to
specifically include The Older Americans
Community Service Program.

Once this information has been obtained the RO should review the
claim and make a determination as to whether the income was
excludable under the appropriate regulations.  If the
determination is adverse to the claimant, she and her
representative should be provided with a supplemental statement
of the case and be given the opportunity to respond.  Thereafter,
the case should be returned to the Board for further appellate
consideration.

          C.W. SYMANSKI
          Member, Board of Veterans' Appeals

The Board of Veterans' Appeals Administrative Procedures
Improvement Act, Pub. L. No. 103-271, § 6, 108 Stat. 740, ___
(1994), permits a proceeding instituted before the Board to be
assigned to an individual member of the Board for a
determination.  This proceeding has been assigned to an
individual member of the Board.

Under 38 U.S.C.A. § 7252 (West 1991), only a decision of the
Board of Veterans' Appeals is appealable to the United States
Court of Veterans Appeals.  This remand is in the nature of a
preliminary order and does not constitute a decision of the Board
on the merits of your appeal.  38 C.F.R. § 20.1100(b) (1993).