[Congressional Record Volume 150, Number 101 (Tuesday, July 20, 2004)]
[House]
[Pages H6078-H6080]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




      VETERANS' COMPENSATION COST-OF-LIVING ADJUSTMENT ACT OF 2004

  Mr. SMITH of New Jersey. Madam Speaker, I move to suspend the rules 
and pass the bill (H.R. 4175) to increase, effective as of December 1, 
2004, the rates of disability compensation for veterans with service-
connected disabilities and the rates of dependency and indemnity 
compensation for survivors of certain service-connected disabled 
veterans, and for other purposes, as amended.
  The Clerk read as follows:

                               H.R. 4175

       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 ``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 section 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 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.

     SEC. 4. IMPROVED BENEFITS FOR FORMER PRISONERS OF WAR.

       Section 1112(b)(3) of title 38, United States Code, is 
     amended by adding at the end the following new subparagraph:
       ``(L) Osteoporosis.''.

     SEC. 5. CODIFICATION OF COST-OF-LIVING ADJUSTMENT PROVIDED IN 
                   PUBLIC LAW 108-47.

       (a) Veterans' Disability Compensation.--Section 1114 of 
     title 38, United States Code, is amended--
       (1) by striking ``$104'' in subsection (a) and inserting 
     ``$106'';
       (2) by striking ``$201'' in subsection (b) and inserting 
     ``$205'';
       (3) by striking ``$310'' in subsection (c) and inserting 
     ``$316'';
       (4) by striking ``$445'' in subsection (d) and inserting 
     ``$454'';
       (5) by striking ``$633'' in subsection (e) and inserting 
     ``$646'';
       (6) by striking ``$801'' in subsection (f) and inserting 
     ``$817'';
       (7) by striking ``$1,008'' in subsection (g) and inserting 
     ``$1,029'';
       (8) by striking ``$1,171'' in subsection (h) and inserting 
     ``$1,195'';
       (9) by striking ``$1,317'' in subsection (i) and inserting 
     ``$1,344'';
       (10) by striking ``$2,193'' in subsection (j) and inserting 
     ``$2,239'';
       (11) in subsection (k)--
       (A) by striking ``$81'' both places it appears and 
     inserting ``$82''; and
       (B) by striking ``$2,728'' and ``$3,827'' and inserting 
     ``$2,785'' and ``$3,907'', respectively;
       (12) by striking ``$2,728'' in subsection (l) and inserting 
     ``$2,785'';
       (13) by striking ``$3,010'' in subsection (m) and inserting 
     ``$3,073'';
       (14) by striking ``$3,425'' in subsection (n) and inserting 
     ``$3,496'';
       (15) by striking ``$3,827'' each place it appears in 
     subsections (o) and (p) and inserting ``$3,907'';
       (16) by striking ``$1,643'' and ``$2,446'' in subsection 
     (r) and inserting ``$1,677'' and ``$2,497'', respectively; 
     and
       (17) by striking ``$2,455'' in subsection (s) and inserting 
     ``$2,506''.
       (b) Additional Compensation for Dependents.--Section 
     1115(1) of such title is amended--
       (1) by striking ``$125'' in subparagraph (A) and inserting 
     ``$127'';
       (2) by striking ``$215'' and ``$64'' in subparagraph (B) 
     and inserting ``$219'' and ``$65'', respectively;
       (3) by striking ``$85'' and ``$64'' in subparagraph (C) and 
     inserting ``$86'' and ``$65'', respectively;
       (4) by striking ``$101'' in subparagraph (D) and inserting 
     ``$103'';
       (5) by striking ``$237'' in subparagraph (E) and inserting 
     ``$241''; and
       (6) by striking ``$198'' in subparagraph (F) and inserting 
     ``$202''.
       (c) Clothing Allowance for Certain Disabled Veterans.--
     Section 1162 of such title is amended by striking ``$588'' 
     and inserting ``$600''.
       (d) Dependency and Indemnity Compensation for Surviving 
     Spouses.--(1) Section 1311(a) of such title is amended--
       (A) by striking ``$948'' in paragraph (1) and inserting 
     ``$967''; and
       (B) by striking ``$204'' in paragraph (2) and inserting 
     ``$208''.
       (2) The table in section 1311(a)(3) of such title is 
     amended to read as follows:

       

 
                                  Monthly                       Monthly
          ``Pay grade               rate        Pay grade         rate
 
E-1............................       $967  W-4..............     $1,157
E-2............................       $967  O-1..............     $1,022
E-3............................       $967  O-2..............     $1,056
E-4............................       $967  O-3..............     $1,130
E-5............................       $967  O-4..............     $1,195
E-6............................       $967  O-5..............     $1,316
E-7............................     $1,000  O-6..............     $1,483
E-8............................     $1,056  O-7..............     $1,602
E-9............................  $1,102\1\  O-8..............     $1,758
W-1............................     $1,022  O-9..............     $1,881
W-2............................     $1,063  O-10.............  $2,063\2\
W-3............................     $1,094
 
``\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 $1,189.
``\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 $2,213.''.

       (3) Section 1311(b) of such title is amended by striking 
     ``$237'' and inserting ``$241''.

[[Page H6079]]

       (4) Section 1311(c) of such title is amended by striking 
     ``$237'' and inserting ``$241''.
       (5) Section 1311(d) of such title is amended by striking 
     ``$113'' and inserting ``$115''.
       (e) Dependency and Indemnity Compensation for Children.--
     (1) Section 1313(a) of such title is amended--
       (A) by striking ``$402'' in paragraph (1) and inserting 
     ``$410'';
       (B) by striking ``$578'' in paragraph (2) and inserting 
     ``$590'';
       (C) by striking ``$752'' in paragraph (3) and inserting 
     ``$767''; and
       (D) by striking ``$752'' and ``$145'' in paragraph (4) and 
     inserting ``$767'' and ``$148'', respectively.
       (2) Section 1314 of such title is amended--
       (A) by striking ``$237'' in subsection (a) and inserting 
     ``$241'';
       (B) by striking ``$402'' in subsection (b) and inserting 
     ``$410''; and
       (C) by striking ``$201'' in subsection (c) and inserting 
     ``$205''.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from New 
Jersey (Mr. Smith) and the gentleman from Maine (Mr. Michaud) each will 
control 20 minutes.
  The Chair recognizes the gentleman from New Jersey (Mr. Smith).
  Mr. SMITH of New Jersey. Madam Speaker, I yield myself such time as I 
may consume.
  Madam Speaker, H.R. 4175, as amended, would provide a cost-of-living 
adjustment in the same amount as given to Social Security recipients, 
to disabled veterans and surviving spouses. The committee ordered this 
bill reported when it met on May 19, 2004. Five other measures were 
also ordered reported at that meeting of our committee.
  All veterans and qualified survivors of veterans who receive 
disability compensation would receive a full COLA on December 1 of this 
year. The COLA is actually calculated on September 30; but if 
calculated today, it would be 2.2 percent.
  More than 2.5 million veterans, Madam Speaker, were receiving 
service-connected disability compensation as of April of 2004. The 
basic purpose of the disability compensation program is to provide a 
measure of relief from the impaired earning capacity of veterans 
disabled as a result of their military service. These benefits are paid 
monthly, and range from $106 for a 10 percent disability to $2,239 per 
month for a 100 percent disability. Additional monetary benefits are 
available for our most severely disabled veterans, as well as for their 
dependents.
  Spouses of veterans who died on active duty or as the result of a 
service-connected disability likewise are entitled to monetary 
compensation, as the Nation assumes, in part, the legal and moral 
obligation of the veteran to support the spouse and the children. 
Depending on their spouse's rank or grade in service, a spouse receives 
between $967 and $2,063 monthly. Currently, there are more than 300,000 
surviving spouses and more than 29,900 children receiving dependency 
and indemnity compensation, also known as DIC.
  The bill would also expand the list of diseases presumed to be 
related to a former prisoner of war for which benefits may be paid by 
adding osteoporosis, an often crippling bone condition. Former 
prisoners of war are eligible for disability compensation if they are 
disabled from one of the 16 conditions presumed to be the result of 
their POW experience.
  I want to thank the gentleman from Florida (Mr. Bilirakis), the 
committee's vice chairman, for working with us to include this portion 
of his bill, which was H.R. 348.
  Finally, the bill would codify the current rates of compensation for 
service-connected disabilities and the rates of DIC for surviving 
spouses and children of veterans who die of service-connected causes, 
which went into effect last December, pursuant to Public Law 108-147.
  I urge my colleagues to support this bill. It is a bipartisan bill.
  Madam Speaker, I reserve the balance of my time.
  Mr. MICHAUD. Madam Speaker, I yield myself such time as I may 
consume.
  Madam Speaker, I would like to thank once again the gentleman from 
New Jersey (Mr. Smith); the ranking member, the gentleman from Illinois 
(Mr. Evans); and our chairman of the Subcommittee on Benefits, the 
gentleman from South Carolina (Mr. Brown), for their continued efforts 
to assure that our veterans' purchasing power is not decreased with the 
passage of time.
  H.R. 4175, the Veterans Compensation Cost-of-Living Act of 2004, will 
help our service-disabled veterans and their survivors maintain the 
value of their compensation benefits despite any increase in the cost 
of living.
  Although we will not know the amount of the increase until the 
consumer price index is computed this fall, I expect this bill will 
provide an increase in benefits for calendar year 2005.
  No amount of money can adequately compensate for the loss of life or 
limb, but it is important that the compensation that is paid does not 
lose its value as the cost of living rises. This is particularly 
important in a rural State like Maine. Some labor market areas in my 
State have experienced double-digit unemployment. In one labor market 
alone last year, unemployment was as high as 32 percent.
  Veterans benefits help veterans and their families in these areas 
make ends meet. I am also happy to note that the bill contains a 
provision adding osteoarthritis to the list of conditions that are 
presumptively service-connected for veterans who are former POWs.
  I am a co-sponsor of H.R. 348, introduced by the gentleman from 
Florida (Mr. Bilirakis), which contains this provision and more. I 
regret that the full bill cannot be considered because of the fiscal 
constraints.
  I believe that when men and women suffer disabilities as a result of 
confinement as prisoners of war, this Nation should compensate them for 
all the disabilities that result. These disabilities are another cost 
of war, and they should be recognized and compensated as such. This 
provision is another small step in the right direction.
  H.R. 4175 will receive my full support, and it deserves the support 
of Members of this House.
  Madam Speaker, I reserve the balance of my time.

                              {time}  1745

  Mr. SMITH of New Jersey. Madam Speaker, I yield such time as he may 
consume to the gentleman from South Carolina (Mr. Brown), the 
distinguished chairman of our Subcommittee on Benefits.
  Mr. BROWN of South Carolina. Madam Speaker, I rise in support of H.R. 
4175, the Veterans' Compensation Cost-of-Living Adjustment Act of 2004.
  Congress acts annually to provide a cost-of-living adjustment in VA 
disability compensation and survivors benefits. Congress has provided 
increases in these rates for every fiscal year since 1976, and the 
administration's fiscal year 2005 budget includes the cost for this 
increase.
  As well as providing the cost-of-living adjustment effective December 
1, 2004, and codifying the current dollar amount for veterans and 
survivors benefits, H.R. 4175, as amended, would add osteoporosis to 
the list of diseases presumed to be service-connected for former 
prisoners of war. This particular provision is derived from H.R. 438, 
which the gentleman from Florida (Mr. Bilirakis) introduced in January 
of 2003. The vice chairman has long been a champion for former POWs, 
and I regret that due to budgetary obstacles we were not able to 
consider his bill in its entirety. I appreciate his understanding in 
that regard.
  Madam Speaker, I note that last year the Secretary of Veterans 
Affairs convened a work group comprised of officials from the Veterans 
Health Administration, Veterans Benefits Administration and the Office 
of General Counsel, to develop a methodology for a fair and balanced 
assessment of medical conditions identified and associated with POW 
detention. This summer, the workgroup will recommend to the Secretary 
any conditions it believes warrant either presumptive status or further 
study. I look forward to meeting with the Secretary upon the work-
group's findings.
  I want to thank the gentleman from Maine (Mr. Michaud), the ranking 
member of the Subcommittee on Benefits, for his efforts on this bill 
and urge all my colleagues to support it.
  Mr. MICHAUD. Madam Speaker, I yield 2 minutes to the gentleman from 
Illinois (Mr. Evans), the ranking member of the committee.
  Mr. EVANS. Madam Speaker, I would like to thank the gentleman from 
New Jersey (Mr. Smith), chairman of the full committee; the gentleman 
from South Carolina (Mr. Brown), the Subcommittee on Benefits chairman; 
and

[[Page H6080]]

the gentleman from Maine (Mr. Michaud), the ranking Democratic member, 
for their spirt of bipartisanship. Their work has resulted in a bill 
strongly supported by Members on both sides of the aisle.
  H.R. 4175, the Veterans' Compensation Cost-of-Living Adjustment Act 
of 2004, will help our service-disabled veterans and their survivors 
maintain the value of their benefits despite any increases in cost-of-
living adjustments. Our Nation's veterans and survivors have earned 
these benefits, and we must maintain their purchasing power.
  I strongly support the provision adding osteoarthritis to the list of 
conditions which are presumptively service-connected for veterans who 
are former prisoners of war. Last year, the Congress passed legislation 
which I introduced to add additional disabilities to the presumptive 
list and to eliminate the time period of internment for certain 
conditions. I am a cosponsor and strongly support efforts to improve 
benefits for prisoners of war.
  Additional presumptive conditions and the establishment of criteria 
for the Department of Veterans Affairs to establish new presumptive 
conditions are contained in H.R. 348, introduced by the gentleman from 
Florida (Mr. Bilirakis), my good friend. I hope that all of these 
provisions will one day become law.
  This is a bill which deserves the support of all of the Members of 
this House. I urge all Members to support it.
  Mr. SMITH of New Jersey. Madam Speaker, I yield such time as he may 
consume to the gentleman from Colorado (Mr. Beauprez), a distinguished 
member of the committee.
  Mr. BEAUPREZ. Madam Speaker, I thank the gentleman and the chairman 
of our committee for his diligence on this bill, as well as on behalf 
of all veterans. He is to be commended. And my thanks as well to the 
gentleman from Maine (Mr. Michaud), my good friend, and the gentleman 
from Illinois (Mr. Evans), the ranking member of our full committee, 
for his work as well. It has been a real pleasure to serve on the 
Committee on Veterans' Affairs in a true bipartisan effort.
  Mr. Speaker, I rise in full support of H.R. 4175. There is absolutely 
no question that our Nation's veterans are truly deserving of every bit 
of assistance we can afford to provide them in return for their service 
to our country.
  Disabled veterans must receive even greater care and compensation. It 
is imperative that we ensure that these brave men and women receive 
every benefit they have so painstakingly earned.
  It is equally important that these benefits be periodically adjusted 
to meet the increasing demands of inflation.
  This bill, the Veterans' Compensation Cost-of-Living Adjustment Act, 
will increase disability compensation and survivor pensions based upon 
the Consumer Price Index. In addition, the bill will also provide 
additional compensation for surviving spouses and their children.
  Madam Speaker, I feel the merits of this bill speak for themselves 
and have already eloquently been addressed in this Chamber. I hope my 
colleagues here today will join me in supporting this legislation for 
those who helped defend our Nation's unparalleled ideals.
  Mr. MICHAUD. Madam Speaker, I yield 2 minutes to the gentleman from 
Texas (Mr. Rodriguez).
  Mr. RODRIGUEZ. Madam Speaker, I rise today in support of H.R. 4175, 
the Veterans' Compensation Cost-of-Living Adjustment Act of 2004.
  I would also like to take this opportunity to thank the gentleman 
from New Jersey (Mr. Smith), the chairman of the Committee on Veterans 
Affairs, and of course, the gentleman from Illinois (Mr. Evans), our 
ranking member, for their leadership and advocacy for our Nation's 
veterans. I also would like to thank the gentleman from Maine (Mr. 
Michaud) for his efforts and his leadership as the ranking member of 
the Subcommittee on Benefits, as well as the gentleman from South 
Carolina (Mr. Brown).
  Every year Congress does a small yet much welcomed cost-of-living 
adjustment to increase the rates of disability compensation for 
veterans with service-connected disabilities. This legislation, similar 
to those we have passed before, would authorize the cost-of-living 
adjustment on December 1, 2004, based on the same formula for our 
Social Security users. Additionally, it would increase the rates of 
dependency and indemnity compensation for survivors of certain service-
connected disabled veterans.
  Our disabled veterans are some of our country's greatest assets.
  The Disabled American Veterans say it best: ``Treaties are signed and 
the battles of nations end, but the personal battles of those disabled 
in war only begin when the guns fall silent.'' These men and women must 
struggle to regain health, to reshape lives shattered by disability, 
learn new trades or professions, and rejoin the civilian world. At each 
step, they need help to help themselves.
  Madam Speaker, I know that this is just a small increase for our 
veterans and their survivors, but I know that they appreciate it. I 
encourage all my colleagues to vote in favor of this particular piece 
of legislation.
  Mr. SMITH of New Jersey. Madam Speaker, I yield myself such time as I 
may consume. We do not have any further requests for time.
  I, too, want to thank the gentleman from Maine (Mr. Michaud) and 
again the gentleman from Illinois (Mr. Evans) and the gentleman from 
South Carolina (Mr. Brown). This is again a good, bipartisan piece of 
legislation. It is very significant and will significantly help our 
veterans and especially those who are service-connected disabled.
  Madam Speaker, I yield back the balance of our time.
  Mr. MICHAUD. Madam Speaker, I yield 3 minutes to the gentlewoman from 
South Dakota (Ms. Herseth), who has shown her interest in veterans' 
issues and is very dedicated and will be a hard fighter for veterans' 
issues.
  Ms. HERSETH. Madam Speaker, I thank the gentleman for yielding me 
time.
  I would like to thank the gentleman from New Jersey (Mr. Smith), 
chairman of the House Committee on Veterans' Affairs, and the gentleman 
from Illinois (Mr. Evans), the ranking Democrat member, as well as the 
gentleman from South Carolina (Mr. Brown) and the gentleman from Maine 
(Mr. Michaud) for again working together to maintain the level of 
benefits provided to veterans who are disabled as a result of their 
military service and the survivors of those who have died.
  In this Chamber, we hear debates often on the merits and costs of 
various programs proposed by the Department of Defense. Today, as men 
and women of the Armed Forces place themselves in harm's way, this bill 
reminds us that the costs of war do not end when the treaties are 
signed and the battle is over.
  Those who are disabled while serving this Nation deserve to be 
appropriately compensated for the harm that they have suffered. As the 
cost-of-living rises, so must the compensation paid to those who have 
service-connected disabilities.
  Those who have been held as prisoners of war deserve our special 
consideration. This bill would recognize that former prisoners of war 
are at greatest risk of osteoarthritis. I commend the gentleman from 
Florida (Mr. Bilirakis), the subcommittee chairman, for his efforts in 
this regard.
  H.R. 4175 is a bill which deserves the support of all Members of this 
House, and I urge all Members to support it.
  Mr. MICHAUD. Madam Speaker, I have no further requests for time, and 
I yield back the balance of my time.
  The SPEAKER pro tempore (Mrs. Biggert). The question is on the motion 
offered by the gentleman from New Jersey (Mr. Smith) that the House 
suspend the rules and pass the bill, H.R. 4175, as amended.
  The question was taken.
  The SPEAKER pro tempore. In the opinion of the Chair, two-thirds of 
those present have voted in the affirmative.
  Mr. SMITH of New Jersey. Mr. Speaker, on that I demand the yeas and 
nays.
  The yeas and nays were ordered.
  The SPEAKER pro tempore. Pursuant to clause 8 of rule XX and the 
Chair's prior announcement, further proceedings on this motion will be 
postponed.




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