[Congressional Record Volume 150, Number 74 (Tuesday, June 1, 2004)]
[Senate]
[Pages S6279-S6280]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. SPECTER:
  S. 2483. A bill to increase, effective as of December 1, 2004, 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; to the Committee on Veterans' 
Affairs.
  Mr. SPECTER. Mr. President, I have sought recognition to comment on 
legislation I am introducing today to provide a cost-of-living, COLA, 
adjustment for certain veterans' benefits programs. This COLA 
adjustment would affect payments made to nearly 3 million Department of 
Veterans Affairs, VA, beneficiaries, and would be reflected in 
beneficiary checks that are received in January 2005, and thereafter.
  An annual cost-of-living adjustment in veterans benefits is an 
important tool which protects veterans' cash-transfer benefits against 
the corrosive effects of inflation. The principal programs affected by 
the adjustment would be compensation paid to disabled veterans, and 
dependency and indemnity compensation, DIC, payments made to the 
surviving spouses, minor children and other dependants of persons who 
died in service, or who died after service as a result of service-
connected injuries or diseases.
  The President's budget anticipates inflation to be at a 1.3-percent 
level at the close of this year as measured by the consumer price 
index, CPI, published by the Department of Labor's Bureau of Labor 
Statistics. If inflation is held to the 1.3-percent level, that will be 
the level of COLA adjustment under this legislation since it ties the 
increase directly to the CPI increase as measured by the Department of 
Labor. Whatever the CPI increase eventually turns out to be, however, 
veterans' and survivors' benefits payments must be protected by being 
increased by a like amount. The Senate has already concurred with that 
judgment with passage of a budget resolution which assumes an increase 
equal to the CPI, and which sets aside the funds necessary to finance 
the COLA increase envisioned by this legislation.
  I ask my colleagues to support this vital legislation.
  I ask unanimous consent that this bill be printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 2483

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Veterans' Compensation Cost-
     of-Living Adjustment Act of 2004''.

     SEC. 2. INCREASE IN RATES OF DISABILITY COMPENSATION AND 
                   DEPENDENCY AND INDEMNITY COMPENSATION.

       (a) Rate Adjustment.--The Secretary of Veterans Affairs 
     shall, effective on December 1, 2004, increase the dollar 
     amounts in effect for the payment of disability compensation 
     and dependency and indemnity compensation by the Secretary, 
     as specified in subsection (b).
       (b) Amounts To Be Increased.--The dollar amounts to be 
     increased pursuant to subsection (a) are the following:
       (1) Compensation.--Each of the dollar amounts in effect 
     under section 1114 of title 38, United States Code.
       (2) Additional compensation for dependents.--Each of the 
     dollar amounts in effect under sections 1115(1) of such 
     title.
       (3) Clothing allowance.--The dollar amount in effect under 
     section 1162 of such title.
       (4) New dic rates.--The dollar amounts in effect under 
     paragraphs (1) and (2) of section 1311(a) of such title.
       (5) Old dic rates.--Each of the dollar amounts in effect 
     under section 1311(a)(3) of such title.
       (6) Additional dic for surviving spouses with minor 
     children.--The dollar amount in effect under section 1311(b) 
     of such title.
       (7) Additional dic for disability.--The dollar amounts in 
     effect under sections 1311(c) and 1311(d) of such title.
       (8) DIC for dependent children.--The dollar amounts in 
     effect under sections 1313(a) and 1314 of such title.
       (c) Determination of Increase.--(1) The increase under 
     subsection (a) shall be made in the dollar amounts specified 
     in subsection (b) as in effect on November 30, 2004.
       (2) Except as provided in paragraph (3), each such amount 
     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, 2004, as a result of a determination under 
     section 215(i) of such Act (42 U.S.C. 415(i)).
       (3) Each dollar amount increased pursuant to paragraph (2) 
     shall, if not a whole dollar amount, be rounded down to the 
     next lower whole dollar amount.
       (d) Special Rule.--The Secretary may adjust 
     administratively, consistent with the increases made under 
     subsection (a), the rates of disability compensation payable 
     to persons within the purview of section 10 of Public Law 85-
     857 (72 Stat. 1263) who are not in receipt of compensation 
     payable pursuant to chapter 11 of title 38, United States 
     Code.

     SEC. 3. PUBLICATION OF ADJUSTED RATES.

       At the same time as 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

[[Page S6280]]

     under section 215(i) of such Act during fiscal year 2005, the 
     Secretary of Veterans Affairs shall publish in the Federal 
     Register the amounts specified in subsection (b) of section 
     2, as increased pursuant to that section.
                                 ______