One Hundred Tenth Congress of the United States of America 2d SessionBegun and held at the City of Washington on Thursday, the third day of January, two thousand and eight S. 2617 IN THE SENATE OF THE UNITED STATES AN ACT To amend title 38, United States Code, to codify increases in the rates of compensation for veterans with service-connected disabilities and the rates of dependency and indemnity compensation for the survivors of certain disabled veterans that were effective as of December 1, 2007, to provide for an increase in the rates of such compensation effective December 1, 2008, and for other purposes.

1.

Short title

This Act may be cited as the Veterans' Compensation Cost-of-Living Adjustment Act of 2008.

2.

Increase in rates of disability compensation and dependency and indemnity compensation

(a)

Rate adjustment

Effective on December 1, 2008, the Secretary of Veterans Affairs shall increase, in accordance with subsection (c), the dollar amounts in effect on November 30, 2008, for the payment of disability compensation and dependency and indemnity compensation under the provisions specified in subsection (b). (b)

Amounts To be increased

The dollar amounts to be increased pursuant to subsection (a) are the following: (1)

Wartime disability compensation

Each of the dollar amounts under section 1114 of title 38, United States Code. (2)

Additional compensation for dependents

Each of the dollar amounts under section 1115(1) of such title. (3)

Clothing allowance

The dollar amount under section 1162 of such title. (4)

Dependency and indemnity compensation to surviving spouse

Each of the dollar amounts under subsections (a) through (d) of section 1311 of such title. (5)

Dependency and indemnity compensation to children

Each of the dollar amounts under sections 1313(a) and 1314 of such title. (c)

Determination of increase

(1)

Percentage

Except as provided in paragraph (2), each dollar amount described in subsection (b) shall be increased by the same percentage as the percentage by which benefit amounts payable under title II of the Social Security Act (42 U.S.C. 401 et seq.) are increased effective December 1, 2008, as a result of a determination under section 215(i) of such Act (42 U.S.C. 415(i)). (2)

Rounding

Each dollar amount increased under paragraph (1), if not a whole dollar amount, shall be rounded to the next lower whole dollar amount. (d)

Special rule

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 title 38, United States Code. (e)

Publication of adjusted rates

The Secretary of Veterans Affairs shall publish in the Federal Register the amounts specified in subsection (b), as increased under that subsection, not later than the date on which the matters specified in section 215(i)(2)(D) of the Social Security Act (42 U.S.C. 415(i)(2)(D)) are required to be published by reason of a determination made under section 215(i) of such Act during fiscal year 2009.

3.

Codification of 2007 cost-of-living adjustment in rates of disability compensation and dependency and indemnity compensation

(a)

Veterans’ disability compensation

Section 1114 of title 38, United States Code, is amended— (1)in subsection (a), by striking $115 and inserting $117; (2)in subsection (b), by striking $225 and inserting $230; (3)in subsection (c), by striking $348 and inserting $356; (4)in subsection (d), by striking $501 and inserting $512; (5)in subsection (e), by striking $712 and inserting $728; (6)in subsection (f), by striking $901 and inserting $921; (7)in subsection (g), by striking $1,135 and inserting $1,161; (8)in subsection (h), by striking $1,319 and inserting $1,349; (9)in subsection (i), by striking $1,483 and inserting $1,517; (10)in subsection (j), by striking $2,471 and inserting $2,527; (11)in subsection (k)— (A)by striking $89 both places it appears and inserting $91; and (B)by striking $3,075 and $4,313 and inserting $3,145 and $4,412, respectively; (12)in subsection (l), by striking $3,075 and inserting $3,145; (13)in subsection (m), by striking $3,392 and inserting $3,470; (14)in subsection (n), by striking $3,860 and inserting $3,948; (15)in subsections (o) and (p), by striking $4,313 each place it appears and inserting $4,412; (16)in subsection (r), by striking $1,851 and $2,757 and inserting $1,893 and $2,820, respectively; and (17)in subsection (s), by striking $2,766 and inserting $2,829. (b)

Additional compensation for dependents

Section 1115(1) of such title is amended— (1)in subparagraph (A), by striking $139 and inserting $142; (2)in subparagraph (B), by striking $240 and $70 and inserting $245 and $71, respectively; (3)in subparagraph (C), by striking $94 and $70 and inserting $96 and $71, respectively; (4)in subparagraph (D), by striking $112 and inserting $114; (5)in subparagraph (E), by striking $265 and inserting $271; and (6)in subparagraph (F), by striking $222 and inserting $227. (c)

Clothing allowance for certain disabled veterans

Section 1162 of such title is amended by striking $662 and inserting $677. (d)

Dependency and indemnity compensation for surviving spouses

(1)

New law dic

Section 1311(a) of such title is amended— (A)in paragraph (1), by striking $1,067 and inserting $1,091; and (B)in paragraph (2), by striking $228 and inserting $233. (2)

Old law dic

The table in paragraph (3) of such section is amended to read as follows: Pay gradeMonthly ratePay gradeMonthly rate 1 If the veteran served as sergeant major of the Army, senior enlisted advisor of the Navy, chief master sergeant of the Air Force, sergeant major of the Marine Corps, or master chief petty officer of the Coast Guard, at the applicable time designated by section 1302 of this title, the surviving spouse's rate shall be $1,342. 2 If the veteran served as Chairman or Vice-Chairman of the Joint Chiefs of Staff, Chief of Staff of the Army, Chief of Naval Operations, Chief of Staff of the Air Force, Commandant of the Marine Corps, or Commandant of the Coast Guard, at the applicable time designated by section 1302 of this title, the surviving spouse's rate shall be $2,499. E–1$1,091W–4$1,305 E–2$1,091O–1$1,153 E–3$1,091O–2$1,191 E–4$1,091O–3$1,274 E–5$1,091O–4$1,349 E–6$1,091O–5$1,485 E–7$1,129O–6$1,674 E–8$1,191O–7$1,808 E–9$1,2421O–8$1,985 W–1$1,153O–9$2,123 W–2$1,198O–10$2,3282 W–3$1,234 (3)

Additional dic for children or disability

Section 1311 of such title is amended— (A)in subsection (b), by striking $265 and inserting $271; (B)in subsection (c), by striking $265 and inserting $271; and (C)in subsection (d), by striking $126 and inserting $128. (e)

Dependency and indemnity compensation for children

(1)

Dic when no surviving spouse

Section 1313(a) of such title is amended— (A)in paragraph (1), by striking $452 and inserting $462; (B)in paragraph (2), by striking $649 and inserting $663; (C)in paragraph (3), by striking $846 and inserting $865; and (D)in paragraph (4), by striking $846 and $162 and inserting $865 and $165, respectively. (2)

Supplemental dic for certain children

Section 1314 of such title is amended— (A)in subsection (a), by striking $265 and inserting $271; (B)in subsection (b), by striking $452 and inserting $462; and (C)in subsection (c), by striking $225 and inserting $230. (f)

Effective date

The amendments made by this section shall take effect on December 1, 2007.

Speaker of the House of Representatives Vice President of the United States and President of the Senate