[Senate Report 106-108]
[From the U.S. Government Publishing Office]





                                                       Calendar No. 216

106th Congress                                                   Report
  1st Session                    SENATE                         106-108

======================================================================




 
      VETERANS' COMPENSATION COST-OF-LIVING ADJUSTMENT ACT OF 1999

                                _______
                                

                 July 19, 1999.--Ordered to be printed

                                _______


  Mr. Specter, from the Committee on Veterans' Affairs, submitted the 
                               following

                              R E P O R T

                         [To accompany S. 1393]

    The Committee on Veterans' Affairs, reported an original 
bill S. 1393 to provide a cost-of-living adjustment in rates of 
compensation for veterans with service-connected disabilities 
and dependency and indemnity compensation for survivors of such 
veterans, to amend title 38, United States Code, to codify the 
previous cost-of-living adjustment in such rates, and for other 
purposes, having considered the same, reports favorably an 
original bill and recommends that the original bill do pass.

                              Introduction

    On May 19, 1999, Committee Chairman Arlen Specter 
introduced S. 1076, the proposed ``Veterans Benefits Act of 
1999.'' S. 1076 would have provided for a December 1, 1999, 
cost-of-living adjustment (COLA), equal to the December 1, 
1999, COLA in Social Security benefits, in the rates of 
compensation for veterans who have service-connected 
disabilities and in the rates of dependency and indemnity 
compensation (DIC) for the survivors of those who died from 
service-connected causes. In addition, S. 1076 would have, 
among other things: reauthorized, modified, and enhanced 
certain programs providing health care, education, and other 
benefits for veterans; authorized major medical facility 
projects; reformed eligibility for burial in Arlington National 
Cemetery; granted fund raising and borrowing authorities to 
facilitate the construction of a World War II Memorial; and 
modified provisions of law relating to the retirement of judges 
on the United States Court of Appeals for Veterans' Claims.

                           Committee Hearing

    On May 20, 1999, the Committee held a hearing on a number 
of bills pending before the Committee, including S. 1076. The 
Committee received testimony from Senator Kent Conrad; from 
representatives of the Department of Veterans Affairs (VA) and 
the Department of Army; and from representatives of The 
American Legion, the Veterans of Foreign Wars, the Disabled 
American Veterans, the Paralyzed Veterans of America, AMVETS, 
and the Vietnam Veterans of America. In addition, the Committee 
received written statements for the record from the Chief Judge 
of the United States Court of Appeals for Veterans Claims; and 
from representatives of the American Federation of Government 
Employees, AFL-CIO, the National Association of Government 
Employees, the National Association of VA Physicians and 
Dentists, the Nurses Organization of Veterans Affairs, and 
National Coalition for Homeless Veterans.

                           Committee Meeting

    On June 23, 1999, the Committee met in open session to 
consider S. 1076, as amended, and other legislation pending 
before the Committee. Among the measures so considered was S. 
1393 (hereinafter, the ``Committee bill''), an original bill 
which was derived from and, except for technical changes, 
restated the text of Title I of S. 1076, as introduced. The 
Committee voted by unanimous voice vote to report the Committee 
bill favorably to the Senate.

               Summary of the Committee Bill as Reported

    The Committee bill contains freestanding provisions that 
would require the Secretary of Veterans Affairs to increase, 
effective December 1, 1999, the rates of and limitations on 
certain benefits paid by VA by the same percentage as the COLA 
provided to Social Security recipients and VA pension 
beneficiaries that become effective on the same date. The COLA 
would apply to:
          1. basic compensation rates for veterans with 
        service-connected disabilities and the rates payable 
        for certain severe disabilities;
          2. the allowances for spouses, children, and 
        dependent parents paid to service-connected-disabled 
        veterans rated 30 percent or more disabled;
          3. the annual clothing allowance paid to veterans 
        whose compensable disability requires the use of a 
        prosthetic or orthopedic appliance (including a 
        wheelchair) that tends to tear or wear out clothing, or 
        requires the use of a medicationprescribed by a 
physician for a service-connected skin condition if the medication 
causes irreparable damage to the veteran's outer garments; and
         4. the DIC rates paid to:
                  (a) surviving spouses of veterans whose 
                deaths were service connected;
                  (b) surviving spouses for dependent children;
                  (c) surviving spouses who are so disabled 
                that they need aid and attendance or are 
                permanently housebound; and
                (d) the children of veterans whose deaths were 
                service connected if no surviving spouse is 
                entitled to DIC, the child is age 18 through 22 
                and attending an approved educational 
                institution, or the child is age 18 or over and 
                became permanently incapable of self-support 
                prior to reaching age 18.
    The Congressional Budget Office (CBO) currently estimates 
that the COLA to be provided to Social Security recipients will 
be 2.7 percent.
    The Committee bill also contains revisions to Title 38, 
United States Code, that would codify in title 38, United 
States Code, increases in the above-summarized benefits 
provided by VA effective December 1, 1998, under authority 
specified in Title XI of Public Law 105-368.

                               Background


Disability compensation

    The service-connected disability compensation program under 
chapter 11 of title 38, United States Code, provides monthly 
cash benefits to veterans who have disabilities incurred or 
aggravated during active duty in the Armed Forces.
    The amount of compensation paid depends on the nature of 
the veteran's disability or combination of disabilities and the 
extent to which the disability impairs earning capacity. VA 
rates compensable disabilities according to its Schedule for 
Rating Disabilities on a graduated scale ranging from 0 to 100 
percent, in 10-percent increments. VA pays higher monthly rates 
(known as ``special monthly compensation'') to totally disabled 
veterans with certain specific, very severe disabilities or 
combinations of disabilities.
    As of March 31, 1999, VA was providing disability 
compensation to 2,283,425 veterans with service-connected 
disabilities. Among the veterans receiving such compensation 
were 110 World War I veterans; 559,345 World War II veterans; 
176,716 Korean-conflict veterans; 732,241 Vietnam-era veterans; 
and 259,961 veterans of the Persian Gulf War era.
    A veteran with a disability rated at 30 percent or more may 
receive additional compensation on behalf of the veteran's 
spouse, children, and dependent parents. These dependents' 
allowances are prorated according to the percentage of 
disability. As of March 31, 1999, 710,866 veterans received 
additional compensation on behalf of 1,077,523 dependents.

Dependency and indemnity compensation

    Under chapter 13 of title 38, VA pays dependency and 
indemnity compensation to the survivors of service members or 
veterans who died on or after January 1, 1957, from a disease 
or injury incurred or aggravated during military service. 
Survivors eligible for DIC include surviving spouses, unmarried 
children under the age of 18, certain helpless children age 18 
or older, children between the ages of 18 and 22 who are 
enrolled in school, and certain needy parents. Under section 
5312 of title 38, parents' DIC rates are adjusted automatically 
at the same time and by the same percentage as Social Security 
and VA pension benefits. Surviving spouses, children, and 
parents who are receiving death compensation based on deaths 
before January 1, 1957, may elect to receive DIC instead of 
death compensation.
    For deaths prior to January 1, 1993, surviving spouses 
received DIC at rates determined by the pay grade (service 
rank) of the deceased veteran. For deaths on or after January 
1, 1993, surviving spouses currently receive $861 per month 
and, if the deceased veteran was totally disabled for 8 years 
prior to death, an additional $187 per month. Surviving spouses 
who had been receiving benefits under the prior DIC program are 
paid under whichever program will pay the higher benefit.
    A surviving spouse who is so disabled as to be housebound 
or in need of regular aid and attendance is eligible to receive 
an additional amount. A surviving spouse also may receive 
additional allowances on behalf of the veteran's surviving 
children.
    Children are entitled to DIC if there is no surviving 
spouse, if they are 18 years or older and became permanently 
incapable of self-support before reaching age 18, or if they 
are 18 to 22 years old and pursuing an approved course of 
education.
    As of March 31, 1999, VA was paying DIC benefits to, or on 
behalf of, 282,706 surviving spouses, 33,293 children, and 
12,210 needy surviving parents.
    Under section 1318(b) of title 38, VA pays benefits at DIC 
rates to the surviving spouses and children of veterans whose 
deaths are not service connected if the veteran, immediately 
prior to his or her death, had been receiving (or had been 
entitled to receive) compensation atthe 100-percent rate 
continuously for 10 or more years or for at least 5 years from the date 
of discharge or release from active duty.

History of cost-of-living increases

    The Committee periodically reviews the service-connected 
disability compensation and DIC programs to ensure that the 
benefits provide reasonable and adequate compensation for 
disabled veterans and their families. Based on this review, the 
Congress acts periodically to provide a cost-of-living 
adjustment in compensation and DIC benefits. In fact, the 
Congress has provided annual increases in these rates for every 
fiscal year since 1976. The following table shows the 
percentage increases since 1975.

 HISTORY OF SERVICE-CONNECTED DISABILITY COMPENSATION INCREASES, 1975 TO
                                 PRESENT
------------------------------------------------------------------------
                                                  Increase    Cumulative
         Fiscal year            Effective date   (percent)   (1969=$100)
------------------------------------------------------------------------
1976.........................  August 1975....         11.8       158.55
1977.........................  October 1976...          8.0       171.23
1978.........................  October 1977...          6.6       182.53
1979.........................  October 1978...          7.3       195.86
1980.........................  October 1979...          9.9       215.25
1981.........................  October 1980...         14.3       246.03
1982.........................  October 1981...         11.2       273.58
1983.........................  October 1982...          7.4       293.82
1984.........................  April 1983.....          3.5       304.11
1985.........................  December 1984..          3.2       313.84
1986.........................  December 1985..          3.1       323.57
1987.........................  December 1986..          1.5       328.42
1988.........................  December 1987..          4.2       342.22
1989.........................  December 1988..          4.1       356.25
1990.........................  December 1989..          4.7       372.99
1991.........................  December 1990            5.4       393.13
                                \1\.
1992.........................  December 1991..          3.7       407.68
1993.........................  December 1992..          3.0       419.91
1994.........................  December 1993..          2.6       430.83
1995.........................  December 1994            2.8       442.89
                                \2\.
1996.........................  December 1995            2.6       454.41
                                \2\.
1997.........................  December 1996..          2.9       467.59
1998.........................  December 1997            2.1       477.41
                                \2\.
1999.........................  December 1998            1.3       483.62
                                \2\.
2000.........................  December 1999        2.7 \3\  496.68 \3\
                                \2\.
------------------------------------------------------------------------
\1\ Payment of the December 1990 increase was delayed until January 1992
  by section 8005(b) of Public Law 101-508.
\2\ December 1994, 1995, 1997, 1998, and 1999 increases are rounded to
  the next lower dollar amount pursuant to sections 2(c)(2) of Public
  Law 103-418 and Public Law 104-57, and section 8031 of Public Law 105-
  33.
\3\ Estimate.

                             Committee Bill

    The Committee bill would direct VA to compute and provide 
increases in the monthly rates of compensation and DIC, 
effective December 1, 1999. The rates would be increased by the 
same percentage as the Social Security and VA pension COLA that 
will take effect on that date. In accordance with section 8031 
of the Balanced Budget Act of 1997 (Public Law 105-33), amounts 
of compensation so computed that are not even multiples of $1 
will be rounded down to the next lower whole dollar amount.
    The increases in DIC automatically would result in 
identical percentage increases in benefits paid at DIC rates 
under section 1318 of title 38 to the surviving spouses and 
children of veterans who had a service-connected disability at 
the time of death for which they continuously were rated 
totally disabled for at least either (1) 10 years, or (2) 5 
years from the date of discharge from active duty.
    Under section 156(e)(1)(A) of Public Law 97-377, the DIC 
increases also automatically would result in the same 
percentage increases in Social Security benefits that were 
terminated by section 2205 of the Omnibus Budget Reconciliation 
Act of 1981 (OBRA 1981) (Public Law 97-35). Prior to OBRA 1981, 
those benefits had been paid to certain surviving spouses of 
those who died on active duty or from a service-connected 
disability on behalf of their children under 18 and children 
over age 19 who were secondary-school students; OBRA 1981 
reduced the eligibility cutoff age from 18 to 16 years old.
    Section 314 of Public Law 100-322 amended section 156(a)(1) 
of Public Law 97-377 to restore the benefits eliminated by the 
OBRA 1981. The DIC increase also would apply to these restored 
benefits, effective December 1, 1999.
    CBO, in its most recent baseline, estimated that the fiscal 
year 2000 Social Security COLA, and thus the COLA provided for 
by the Committee bill, will be 2.7 percent. The actual Social 
Security COLA could differ from this estimate. Rather than 
selecting any particular percentage adjustment at the time the 
Committee ordered the bill reported, the Committee followed its 
prior practice of setting the COLA by reference to the Social 
Security increase. The Committee believes this is the most 
equitable means of providing increases in these important 
service-connected benefits.

                             Cost Estimate

    In compliance with paragraph 11(a) of rule XXVI of the 
Standing Rules of the Senate, the Committee, based on 
information supplied by CBO, estimates that, compared to the 
CBO baseline, there would be no costs or savings resulting from 
enactment of the Committee bill.
    The cost estimate provided by CBO follows:

                                     U.S. Congress,
                               Congressional Budget Office,
                                     Washington, DC, June 30, 1999.
Hon. Arlen Specter,
Chairman, Committee on Veterans' Affairs,
U.S. Senate, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office (CBO) 
has prepared the enclosed cost estimate for the Veterans 
Benefits Act of 1999.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Charles 
Riemann.
    Sincerely.
                                          Dan L. Crippen, Director.
            Enclosure.

               CONGRESSIONAL BUDGET OFFICE COST ESTIMATE

Veterans Compensation Cost-of-Living Adjustment Act of 1999

    The bill would increase the amounts paid to veterans for 
disability compensation and to their survivors for dependency 
and indemnity compensation by the same cost-of-living 
adjustment (COLA) payable to Social Security recipients. The 
increase would take effect on December 1, 1999, and the results 
of the adjustment would be rounded to the next lower dollar. 
However, the COLA is assumed in the budget resolution baseline, 
pursuant to section 257 of the Balanced Budget and Emergency 
Deficit Control Act, and savings from rounding it down were 
achieved by the Balanced Budget Act of 1997 (Public Law 105-
33). As a result, the bill would have no budgetary effect 
relative to the baseline. Relative to current law, enacting 
this bill would increase spending for these programs by about 
$360 million in 2000 and about $360 million in 2000 and about 
$480 million a year thereafter.
    The bill contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act and 
would not affect the budgets of state, local or tribal 
governments.
    The estimate was prepared by Charles Riemann. This estimate 
was approved by Robert A. Sunshine, Deputy Assistant Director 
for Budget Analysis.

                      Regulatory Impact Statement

    In compliance with paragraph 11(b) of rule XXVI of the 
Standing Rules of the Senate, the Committee on Veterans' 
Affairs has made an evaluation of the regulatory impact that 
would be incurred in carrying out the Committee bill. The 
Committee finds that the Committee bill would not entail any 
regulation of individuals or businesses or result in any impact 
on the personal privacy of any individuals and that the 
paperwork resulting from enactment would be minimal.

                 Tabulation of Votes Cast in Committee

    In compliance with paragraph 7 of rule XXVI of the Standing 
Rules of the Senate, the following is a tabulation of votes 
cast in person or by proxy by members of the Committee on 
Veterans' Affairs at its June 23, 1999, meeting. On that date, 
the Committee, by unanimous voice vote, ordered S. 1393, an 
original bill to provide a cost-of-living adjustment in rates 
of compensation paid to veterans with service-connected 
disabilities, to amend title 38, United States Code, to codify 
the previous cost-of-living adjustment in such rates, and for 
other purposes, reported favorably to the Senate.

                             Agency Report

    On May 20, 1999, the Honorable Togo D. West, Jr., Secretary 
of Veterans Affairs, appeared before the Committee and 
submitted testimony on, among other things, certain provisions 
of S. 1076. Excerpts from these statements are reprinted below:

     Statement of Togo D. West, Jr., Secretary of Veterans Affairs

    Good afternoon, Mr. Chairman and Members of the Committee: 
It is a pleasure for me to appear before you to provide our 
Department's views on the various proposals that comprise 
today's agenda. These include S. 555 and S. 695, which deal 
with education and burial benefits, respectively, and S. 940, 
an Administration bill you introduced on our behalf which we 
view as critical to our having an organizational structure 
needed to accomplish VA's mission as we enter the next 
millennium. You also asked that we testify on the provisions of 
a draft omnibus Committee bill you plan to introduce.

           *       *       *       *       *       *       *



                           omnibus draft bill


    Turning now to the draft Committee bill, I want to provide 
the following comments on selected provisions that I will 
identify by their associated section numbers and headings as 
they appear in the draft summary we were furnished.

            TITLE I--COMPENSATION COST-OF-LIVING ADJUSTMENT

Subtitle A--Compensation Cost-of-Living Adjustment (Secs. 102 and 103)
    Sections 102 and 103 of the draft bill would direct the 
Secretary of Veterans Affairs to increase administratively the 
rates of compensation for service-disabled veterans and of 
dependency and indemnity compensation (DIC) for the survivors 
of veterans whose deaths are service related, effective 
December 1, 1999. The President's fiscal year 2000 budget 
submission proposes a cost of living adjustment (COLA) for 
compensation and DIC recipients at the same rate of increase as 
the COLA that will be provided under current law to veterans' 
pension and Social Security recipients, which is currently 
estimated to be 2.4 percent. Pursuant to sections 1104(a) and 
1303(a) of title 38, United States Code, in determining the new 
rates, we would be required to round any fractional dollar 
amounts to the next lower whole dollar. We believe this 
proposed COLA is necessary and appropriate in order to protect 
the affected benefits from the eroding effects of inflation. 
Therefore, we strongly support its enactment.
    We estimate enactment would cost $293.3 million during FY 
2000 and $4.97 billion over the period FY's 2000-2004.
Subtitle B--Compensation Rate Amendments (Secs. 111 through 116)
    Sections 111 through 116 of the draft bill would amend 
appropriate sections of title 38, United States Code, to codify 
the rates of disability compensation and DIC that were 
increased, effective December 1, 1998, pursuant to section 1101 
of Public Law 105-368. We support the enactment of this 
provision.

           *       *       *       *       *       *       *


    Changes in Existing Law Made by the Committee Bill, as Reported

    In compliance with paragraph 12 of Rule XXVI of the 
Standing Rules of the Senate, changes in existing law made by 
the Committee bill, as reported, are shown as follows (existing 
law proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, existing law in which no change is 
proposed is shown in roman):

TITLE 38, UNITED STATES CODE

           *       *       *       *       *       *       *


                       PART II--GENERAL BENEFITS

CHAPTER 11--COMPENSATION FOR SERVICE- CONNECTED DISABILITY OR DEATH

           *       *       *       *       *       *       *



Subchapter II--Wartime Disability Compensation

           *       *       *       *       *       *       *



Sec. 1114. Rates of wartime disability compensation

    For the purposes of section 1110 of this title--
          (a) if and while the disability is rated 10 percent 
        the monthly compensation shall be [$95] $96;
          (b) if and while the disability is rated 20 percent 
        the monthly compensation shall be [$182] $184;
          (c) if and while the disability is rated 30 percent 
        the monthly compensation shall be [$279] $282;
          (d) if and while the disability is rated 40 percent 
        the monthly compensation shall be [$399] $404;
          (e) if and while the disability is rated 50 percent 
        the monthly compensation shall be [$569] $576;
          (f) if and while the disability is rated 60 percent 
        the monthly compensation shall be [$717] $726;
          (g) if and while the disability is rated 70 percent 
        the monthly compensation shall be [$905] $916;
          (h) if and while the disability is rated 80 percent 
        the monthly compensation shall be [$1,049] $1,062;
          (i) if and while the disability is rated 90 percent 
        the monthly compensation shall be [$1,181] $1,196;
          (j) if and while the disability is rated as total the 
        monthly compensation shall be [$1,964] $1,989;
          (k) if the veteran, as the result of service-
        connected disability, has suffered the anatomical loss 
        or loss of use of one or more creative organs, or one 
        foot, or one hand, or both buttocks, or blindness of 
        one eye, having only light perception, or has suffered 
        complete organic aphonia with constant inability to 
        communicate by speech, or deafness of both ears, having 
        absence of air and bone conduction, the rate of 
        compensation therefor shall be $75 per month for each 
        such loss or loss of use independent of any other 
        compensation provided in subsections (a) through (j) or 
        subsection (s) of this section but in no event to 
        exceed [$2,443] $2,474 per month; and in the event the 
        veteran has suffered one or more of the disabilities 
        heretofore specified in this subsection, in addition to 
        the requirement for any of the rates specified in 
        subsections (l) through (n) of this section, the rate 
        of compensation shall be increased by $75 per month for 
        each such loss or loss of use, but in no event to 
        exceed [$3,426] $3,470 per month;
          (l) if the veteran, as the result of service-
        connected disability, has suffered the anatomical loss 
        or loss of use of both feet, or of one hand and one 
        foot, or is blind in both eyes, with 5/200 visual 
        acuity or less, or is permanently bedridden or so 
        helpless as to be in need of regular aid and 
        attendance, the monthly compensation shall be [$2,443] 
        $2,474;
          (m) if the veteran, as the result of service-
        connected disability, has suffered the anatomical loss 
        or loss of use of both hands, or of both legs at a 
        level, or with complications, preventing natural knee 
        action with prostheses in place, or of one arm and one 
        leg at levels, or with complications, preventing 
        natural elbow and knee action with prostheses in place, 
        or has suffered blindness in both eyes having only 
        light perception, or has suffered blindness in both 
        eyes, rendering such veteran so helpless as to be in 
        need of regular aid and attendance, the monthly 
        compensation shall be [$2,694] $2,729;
          (n) if the veteran, as the result of service-
        connected disability, has suffered the anatomical loss 
        or loss of use of both arms at levels, or with 
        complications, preventing natural elbow action with 
        prostheses in place, has suffered the anatomical loss 
        of both legs so near the hip as to prevent the use of 
        prosthetic appliances, or has suffered the anatomical 
        loss of one arm and one leg so near the shoulder and 
        hip as to prevent the use of prosthetic appliances, or 
        has suffered the anatomical loss of both eyes, or has 
        suffered blindness without light perception in both 
        eyes, the monthly compensation shall be [$3,066] 
        $3,105;
          (o) if the veteran, as the result of service-
        connected disability, has suffered disability under 
        conditions which would entitle such veteran to two or 
        more of the rates provided in one or more subsections 
        (l) through (n) of this section, no condition being 
        considered twice in the determination, or if the 
        veteran has suffered bilateral deafness (and the 
        hearing impairment in either one or both ears is 
        service connected) rated at 60 percent or more 
        disabling and the veteran has also suffered service-
        connected total blindness with 5/200 visual acuity or 
        less, or if the veteran has suffered service-connected 
        total deafness in one ear or bilateral deafness (and 
        the hearing impairment in either one or both ears is 
        service connected) rated at 40 percent or more 
        disabling and the veteran has also suffered service-
        connected blindness having only light perception or 
        less, or if the veteran has suffered the anatomical 
        loss of both arms so near the shoulder as to prevent 
        the use of prosthetic appliances, the monthly 
        compensation shall be [$3,426] $3,470;
          (p) in the event the veteran's service-connected 
        disabilities exceed the requirements for any of the 
        rates prescribed in this section, the Secretary may 
        allow the next higher rate or an intermediate rate, but 
        in no event in excess of [$3,426] $3,470. In the event 
        the veteran has suffered service-connected blindness 
        with 5/200 visual acuity or less and (1) has also 
        suffered bilateral deafness (and the hearing impairment 
        in either one or both earsis service connected) rated 
at no less than 30 percent disabling, the Secretary shall allow the 
next higher rate, or (2) has also suffered service-connected total 
deafness in one ear or service-connected anatomical loss or loss of use 
of one hand or one foot, the Secretary shall allow the next 
intermediate rate, but in no event in excess of [$3,426] $3,470. In the 
event the veteran has suffered service-connected blindness, having only 
light perception or less, and has also suffered bilateral deafness (and 
the hearing impairment in either one or both ears is service connected) 
rated at 10 or 20 percent disabling, the Secretary shall allow the next 
intermediate rate, but in no event in excess of [$3,426] $3,470. In the 
event the veteran has suffered the anatomical loss or loss of use, or a 
combination of anatomical loss and loss of use, of three extremities, 
the Secretary shall allow the next higher rate or intermediate rate, 
but in no event in excess of [$3,426] $3,470. Any intermediate rate 
under this subsection shall be established at the arithmetic mean, 
rounded down to the nearest dollar, between the two rates concerned;
          (q)  * * *
          (r) subject to section 5503(e) of this title, if any 
        veteran, otherwise entitled to compensation authorized 
        under subsection (o) of this section, at the maximum 
        rate authorized under subsection (p) of this section, 
        or at the intermediate rate authorized between the 
        rates authorized under subsections (n) and (o) of this 
        section and at the rate authorized under subsection (k) 
        of this section, is in need of regular aid and 
        attendance, then, in addition to such compensation--
                  (1) the veteran shall be paid a monthly aid 
                and attendance allowance at the rate of 
                [$1,471] $1,490; or
                  (2) if the veteran, in addition to such need 
                for regular aid and attendance, is in need of a 
                higher level of care, such veteran shall be 
                paid a monthly aid and attendance allowance at 
                the rate of [$2,190] $2,218, in lieu of the 
                allowance authorized in clause (1) of this 
                subsection, if the Secretary finds that the 
                veteran, in the absence of the provision of 
                such care, would require hospitalization, 
                nursing home care, or other residential 
                institutional care. For the purposes of clause 
                (2) of this subsection, need for a higher level 
                of care shall be considered to be need for 
                personal health-care services provided on a 
                daily basis in the veteran's home by a person 
                who is licensed to provide such services or who 
                provides such services under the regular 
                supervision of a licensed health-care 
                professional. The existence of the need for 
                such care shall be determined by a physician 
                employed by the Department or, in areas where 
                no such physician is available, by a physician 
                carrying out such function under contract or 
                fee arrangement based on an examination by such 
                physician. For the purposes of section 1134 of 
                this title, such allowance shall be considered 
                as additional compensation payable for 
                disability.
          (s) if the veteran has a service-connected disability 
        rated as total, and (1) has additional service-
        connected disability or disabilities independently 
        ratable at 60 percent or more, or, (2) by reason of 
        such veteran's service-connected disability or 
        disabilities, is permanently housebound, then the 
        monthly compensation shall be [$2,199] $2,227. For the 
        purposes of this subsection, the requirement of 
        ``permanently housebound'' will be considered to have 
        been met when the veteran is substantially confined to 
        such veteran's house (ward or clinical areas, if 
        institutionalized) or immediate premises due to a 
        service-connected disability or disabilities which it 
        is reasonably certain will remain throughout such 
        veteran's lifetime.

Sec. 1115. Additional compensation for dependents

    Any veteran entitled to compensation at the rates provided 
in section 1114 of this title, and whose disability is rated 
not less than 30 percent, shall be entitled to additional 
compensation for dependents in the following monthly amounts:
          (1) If and while rated totally disabled and--
                  (A) has a spouse but no child, [$114] $115;
                  (B) has a spouse and one or more children, 
                [$195] $197 plus $60 for each child in excess 
                of one;
                  (C) has no spouse but one or more children, 
                [$78] $79 plus $60 for each child in excess of 
                one;
                  (D) has a parent dependent upon such veteran 
                for support, then, in addition to the above 
                amounts, [$92] $93 for each parent so 
                dependent;
                  (E) notwithstanding the other provisions of 
                this paragraph, the monthly payable amount on 
                account of a spouse who is (i) a patient in a 
                nursing home or (ii) helpless or blind, or so 
                nearly helpless or blind as to need or require 
                the regular aid and attendance of another 
                person, shall be [$215] $217 for a totally 
                disabled veteran and proportionate amounts for 
                partially disabled veterans in accordance with 
                paragraph (2) of this section; and
                  (F) notwithstanding the other provisions of 
                this paragraph, the monthly amount payable on 
                account of each child who has attained the age 
                of eighteen years and who is pursuing a course 
                of instruction at an approved 
educationalinstitution shall be [$180] $182 for a totally disabled 
veteran and proportionate amounts for partially disabled veterans in 
accordance with paragraph (2) of this section.

           *       *       *       *       *       *       *


Sec. 1162. Clothing allowance

    The Secretary under regulations which the Secretary shall 
prescribe, shall pay a clothing allowance of [$528] $534 per 
year to each veteran who--
          (1) * * *

           *       *       *       *       *       *       *


CHAPTER 13--DEPENDENCY AND INDEMNITY COMPENSATION FOR SERVICE-CONNECTED 
DEATHS

           *       *       *       *       *       *       *



Subchapter II--Dependency and Indemnity Compensations

           *       *       *       *       *       *       *



Sec. 1311. Dependency and indemnity compensation to a surviving spouse

    (a)(1) Dependency and indemnity compensation shall be paid 
to a surviving spouse at the monthly rate of [$850] $861.
    (2) The rate under paragraph (1) shall be increased by 
[$185] $187 in the case of the death of a veteran who at the 
time of death was in receipt of or was entitled to receive (or 
but for the receipt of retired pay or retirement pay was 
entitled to receive) compensation for a service-connected 
disability that was rated totally disabling for a continuous 
period of at least eight years immediately preceding death. In 
determining the period of a veteran's disability for purposes 
of the preceding sentence, only periods in which the veteran 
was married to the surviving spouse shall be considered.
    (3) In the case of dependency and indemnity compensation 
paid to a surviving spouse that is predicated on the death of a 
veteran before January 1, 1993, the monthly rate of such 
compensation shall be the amount based on the pay grade of such 
veteran, as set forth in the following table, if the amount is 
greater than the total amount determined with respect to that 
veteran under paragraphs (1) and (2):

------------------------------------------------------------------------
                                   Monthly                       Monthly
           [Pay grade               rate         Pay grade        rate
------------------------------------------------------------------------
E-1.............................      $850   W-4..............    $1,017
E-2.............................       850   O-1..............       898
E-3.............................       850   O-2..............       928
E-4.............................       850   O-3..............       992
E-5.............................       850   O-4..............     1,049
E-6.............................       850   O-5..............     1,155
E-7.............................       879   O-6..............     1,302
E-8.............................       928   O-7..............     1,406
E-9.............................   \1\ 968   O-8..............     1,541
W-1.............................       898   O-9..............     1,651
W-2.............................       934   O-10.............  \2\ 1,81
                                                                       1
W-3.............................      962
------------------------------------------------------------------------
\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 402 of this title,
  the surviving spouse's rate shall be $1,044.
\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 402 of this title, the surviving spouse's rate
  shall be $1,941.]


------------------------------------------------------------------------
                                   Monthly                       Monthly
            Pay grade               rate         Pay grade        rate
------------------------------------------------------------------------
E-1.............................      $861   W-4..............    $1,030
E-2.............................       861   O-1..............       909
E-3.............................       861   O-2..............       940
E-4.............................       861   O-3..............     1,004
E-5.............................       861   O-4..............     1,062
E-6.............................       861   O-5..............     1,170
E-7.............................       890   O-6..............     1,318
E-8.............................       940   O-7..............     1,424
E-9.............................   \1\ 980   O-8..............     1,561
W-1.............................       909   O-9..............     1,672
W-2.............................       946   O-10.............  \2\ 1,83
                                                                       4
W-3.............................      974
------------------------------------------------------------------------
\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 $1,057.
\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 $1,966.

    (b) If there is a surviving spouse with one or more 
children below the age of eighteen of a deceased veteran, the 
dependency andindemnity compensation paid monthly to the 
surviving spouse shall be increased by [$215] $217 for each such child.
    (c) The monthly rate of dependency and indemnity 
compensation payable to a surviving spouse shall be increased 
by [$215] $217 if the spouse is (1) a patient in a nursing home 
or (2) helpless or blind, or so nearly helpless or blind as to 
need or require the regular aid and attendance of another 
person.
    (d) The monthly rate of dependency and indemnity 
compensation payable to a surviving spouse shall be increased 
by [$104] $105 if the surviving spouse is, by reason of 
disability, permanently housebound but does not qualify for the 
aid and attendance allowance under subsection (c) of this 
section. For the purposes of this subsection, the requirement 
of ``permanently housebound'' will be considered to have been 
met when the surviving spouse is substantially confined to such 
surviving spouse's home (ward or clinical areas, if 
institutionalized) or immediate premises by reason of a 
disability or disabilities which it is reasonably certain will 
remain throughout such surviving spouse's lifetime.

           *       *       *       *       *       *       *


Sec. 1313. Dependency and indemnity compensation to children

    (a) Whenever there is no surviving spouse of a deceased 
veteran entitled to dependency and indemnity compensation, 
dependency and indemnity compensation shall be paid in equal 
shares to the children of the deceased veteran at the following 
monthly rates:
          (1) one child, [$361] $365;
          (2) two children, [$520] $526;
          (3) three children, [$675] $683; and
          (4) more than three children, [$675] $683, plus 
        [$132] $133 for each child in excess of three.
    (b) * * *

Sec. 1314. Supplemental dependency and indemnity compensation to 
                    children

    (a) In the case of a child entitled to dependency and 
indemnity compensation who has attained the age of eighteen and 
who, while under such age, became permanently incapable of 
self-support, the dependency and indemnity compensation paid 
monthly to such child shall be increased by [$215] $217.
    (b) If dependency and indemnity compensation is payable 
monthly to a person as a surviving spouse and there is a child 
(of such person's deceased spouse) who has attained the age of 
eighteen and who, while under such age, became permanently 
incapable of self-support, dependency and indemnity 
compensation shall be paid monthly to each such child, 
concurrently with the payment of dependency and indemnity 
compensation to the surviving spouse, in the amount of [$361] 
$365.
    (c) If dependency and indemnity compensation is payable 
monthly to a person as a surviving spouse and there is a child 
(of such person's deceased spouse), who has attained the age of 
eighteen and who, while under the age of twenty-three, is 
pursuing a course of instruction at an educational institution 
approved under section 104 of this title, dependency and 
indemnity compensation shall be paid monthly to each such 
child, concurrently with the payment of dependency and 
indemnity compensation to the surviving spouse, in the amount 
of [$182] $184.

           *       *       *       *       *       *       *


                                

