[Congressional Record Volume 151, Number 78 (Tuesday, June 14, 2005)]
[Senate]
[Page S6484]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. CRAIG:
  S. 1234. A bill to increase, effective as of December 1, 2005, 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. CRAIG. 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 2006, 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 2.3 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 2.3-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 request unanimous consent that this bill be printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 1234

       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 2005''.

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

       (a) Rate Adjustment.--Effective on December 1, 2005, the 
     Secretary of Veterans Affairs shall increase, in accordance 
     with subsection (c), the dollar amounts in effect on November 
     30, 2005, 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 sections 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, 2005, 
     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.

     SEC. 3. PUBLICATION OF ADJUSTED RATES.

       The Secretary of Veterans Affairs shall publish in the 
     Federal Register the amounts specified in section 2(b), as 
     increased under that section, 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 2006.
                                 ______