Automatic annual increase in rates of disability compensation and dependency and indemnity compensation

(a)

Indexing to social security increases

Section 5312 of title 38, United States Code, is amended by adding at the end the following new subsection:

(d)(1)Whenever there is an increase in benefit amounts payable under title II of the Social Security Act (42 U.S.C. 401 et seq.) as a result of a determination made under section 215(i) of such Act (42 U.S.C. 415(i)), the Secretary shall, effective on the date of such increase in benefit amounts, increase the dollar amounts in effect for the payment of disability compensation and dependency and indemnity compensation by the Secretary, as specified in paragraph (2), as such amounts were in effect immediately before the date of such increase in benefit amounts payable under title II of the Social Security Act, by the same percentage as the percentage by which such benefit amounts are increased, but only if such percentage increase is calculated using the Bureau of Labor Statistics Consumer Price Index for Urban Wage Earners and Clerical Workers. (2)The dollar amounts to be increased pursuant to paragraph (1) are the following: (A)

Wartime disability compensation

Each of the dollar amounts in effect under section 1114 of this title. (B)

Additional compensation for dependents

Each of the dollar amounts in effect under section 1115(1) of this title. (C)

Clothing allowance

The dollar amount in effect under section 1162 of this title. (D)

Dependency and indemnity compensation to surviving spouse

Each of the dollar amounts in effect under subsections (a) through (d) of section 1311 of such title. (E)

Dependency and indemnity compensation to children

Each of the dollar amounts in effect under sections 1313(a) and 1314 of such title. (3)Whenever there is an increase under paragraph (1) in amounts in effect for the payment of disability compensation and dependency and indemnity compensation, the Secretary shall publish such amounts, as increased pursuant to such paragraph, in the Federal Register at the same time as the material required by section 215(i)(2)(D) of the Social Security Act (42 U.S.C. 415(i)(2)(D)) is published by reason of a determination under section 215(i) of such Act (42 U.S.C. 415(i)). (4)During the period beginning on the date of the enactment of this subsection and ending on September 30, 2018, each dollar amount increased under paragraph (1), if not a whole dollar amount, shall be rounded to the next lower whole dollar amount. (5)The Secretary of Veterans Affairs may adjust administratively, consistent with the increases made under subsection (a), the rates of disability compensation payable to persons under section 10 of Public Law 85–857 (72 Stat. 1263) who have not received compensation under chapter 11 of this title.

(b)

Effective date

Subsection (d) of section 5312 of title 38, United States Code, as added by subsection (a) of this section, shall take effect on December 1, 2014.

Increase in rate of special monthly compensation for severely injured veterans

(a)

Increase

(1)

In general

Section 1114(r) of title 38, United States Code, is amended— (A)in paragraph (1), by striking $2,002 and inserting $3,163; and (B)in paragraph (2), by striking $2,983 and inserting $4,713. (2)

Effective date

The amendments made by paragraph (1) shall take effect on December 1, 2014. (b)

Temporary rates

During the period beginning on December 1, 2014, and ending on September 30, 2018, section 1114(r) of title 38, United States Code, as amended by subsection (a), shall be applied— (1)in paragraph (1), by substituting $2,742 for $3,163; and (2)in paragraph (2), by substituting $4085 for $4,713.