A bill to amend title 38, United States Code, to provide for an increase in the amount of monthly dependency and indemnity compensation payable to surviving spouses by the Secretary of Veterans Affairs, and for other purposes.

Summary: Increases the monthly rates of veterans' dependency and indemnity compensation (DIC) payable to surviving spouses through the Department of Veterans Affairs (VA).

Provides a phase-in of DIC payments in the case of veterans who die of a non-service-connected disability after being eligible for at least five years for VA compensation for a service-connected disability rated as total.

Reduces from 57 to 55 the age after which the remarriage of a surviving spouse shall not terminate DIC payments.

SECTION 1. INCREASE IN AMOUNT OF DEPENDENCY AND INDEMNITY COMPENSATION 
              PAYABLE TO SURVIVING SPOUSES.

    (a) Increase.--Section 1311 of title 38, United States Code, is 
amended--
            (1) in subsection (a)(1), by striking ``of $1,091'' and 
        inserting ``equal to 55 percent of the rate of monthly 
        compensation in effect under section 1114(j) of this title''; 
        and
            (2) by adding at the end the following new subsection:
    ``(g) Notwithstanding any other provision of law (other than 
section 5304(b)(3) of this title), in the case of an individual who is 
eligible for dependency and indemnity compensation under this section 
who is also eligible for benefits under another provision of law by 
reason of such individual's status as the surviving spouse of a 
veteran, then, neither a reduction nor an offset in benefits under such 
provision shall be made by reason of such individual's eligibility for 
benefits under this section.''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
apply with respect to compensation paid under chapter 13 of title 38, 
United States Code, for months beginning after the date that is 180 
days after the date of the enactment of this Act.

SEC. 2. PHASE-IN OF PAYMENT OF DEPENDENCY AND INDEMNITY COMPENSATION 
              WITH RESPECT TO VETERANS WHO DIE OF NON-SERVICE CONNECTED 
              DISABILITY AFTER ENTITLEMENT TO COMPENSATION FOR SERVICE-
              CONNECTED DISABILITY RATED AS TOTALLY DISABLING FOR AT 
              LEAST FIVE YEARS.

    Section 1318 of title 38, United States Code, is amended--
            (1) in subsection (b)(1), by striking ``10 years'' and 
        inserting ``five years'';
            (2) by redesignating subsections (c), (d), and (e) as 
        subsections (d), (e), and (f), respectively; and
            (3) by inserting after subsection (b) the following new 
        subsection (c):
    ``(c) In the case of a deceased veteran described in subsection 
(b)(1), benefits under this chapter shall be payable under subsection 
(a) in amounts as follows:
            ``(1) If the disability of the veteran described in 
        subsection (b)(1) was continuously rated totally disabling for 
        a period of at least five years, but less than six years, 
        immediately preceding death, at the rate of 50 percent of the 
        benefits otherwise so payable.
            ``(2) If the disability of the veteran so described was 
        continuously rated totally disabling for a period of at least 
        six years, but less than seven years, immediately preceding 
        death, at the rate of 60 percent of the benefits otherwise so 
        payable.
            ``(3) If the disability of the veteran so described was 
        continuously rated totally disabling for a period of at least 
        seven years, but less than eight years, immediately preceding 
        death, at the rate of 70 percent of the benefits otherwise so 
        payable.
            ``(4) If the disability of the veteran so described was 
        continuously rated totally disabling for a period of at least 
        eight years, but less than nine years, immediately preceding 
        death, at the rate of 80 percent of the benefits otherwise so 
        payable.
            ``(5) If the disability of the veteran so described was 
        continuously rated totally disabling for a period of at least 
        nine years, but less than 10 years, immediately preceding 
        death, at the rate of 90 percent of the benefits otherwise so 
        payable.
            ``(6) If the disability of the veteran so described was 
        continuously rated totally disabling for a period of at least 
        10 years immediately preceding death, at the rate otherwise so 
        payable.''.

SEC. 3. REDUCTION FROM AGE 57 TO AGE 55 OF AGE AFTER WHICH REMARRIAGE 
              OF SURVIVING SPOUSE SHALL NOT TERMINATE DEPENDENCY AND 
              INDEMNITY COMPENSATION.

    (a) Reduction in Age.--Section 103(d)(2)(B) of title 38, United 
States Code, is amended--
            (1) in the first sentence, by striking ``age 57'' and 
        inserting ``age 55''; and
            (2) by striking the second sentence.
    (b) Effective Date.--The amendments made by subsection (a) shall 
take effect on the date that is the later of--
            (1) the first day of the first month that begins after the 
        date of the enactment of this Act; and
            (2) the first day of the fiscal year that begins in the 
        calendar year in which this Act is enacted.
    (c) Retroactive Benefits Prohibited.--No benefit may be paid to any 
person by reason of the amendment made by subsection (a) for any period 
before the effective date specified in subsection (b).
    (d) Application for Benefits.--In the case of an individual who but 
for having remarried would be eligible for benefits under title 38, 
United States Code, by reason of the amendment made by subsection (a) 
and whose remarriage was before the date of the enactment of this Act 
and after the individual had attained age 55, the individual shall be 
eligible for such benefits by reason of such amendment only if the 
individual submits an application for such benefits to the Secretary of 
Veterans Affairs not later than the end of the one-year period 
beginning on the date of the enactment of this Act.