A bill to amend title 38, United States Code, to codify increases in 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 that were effective as of December 1, 2007, to provide for an increase in the rates of such compensation effective December 1, 2008, and for other purposes.

SECTION 1. SHORT TITLE.
    This Act may be cited as the ``Veterans' Compensation Cost-of-
Living Adjustment Act of 2008''.
SEC. 2. INCREASE IN RATES OF DISABILITY COMPENSATION AND DEPENDENCY AND 
INDEMNITY COMPENSATION.
    (a) Rate Adjustment.--Effective on December 1, 2008, the Secretary 
of Veterans Affairs shall increase, in accordance with subsection (c), 
the dollar amounts in effect on November 30, 2008, 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 section 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, 2008, 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.
    (e) Publication of Adjusted Rates.--The Secretary of Veterans 
Affairs shall publish in the Federal Register the amounts specified in 
subsection (b), as increased under that subsection, 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 2009.
SEC. 3. CODIFICATION OF 2007 COST-OF-LIVING ADJUSTMENT IN RATES OF 
DISABILITY COMPENSATION AND DEPENDENCY AND INDEMNITY COMPENSATION.
    (a) Veterans' Disability Compensation.--Section 1114 of title 38, 
United States Code, is amended--
        (1) in subsection (a), by striking ``$115'' and inserting 
    ``$117'';
        (2) in subsection (b), by striking ``$225'' and inserting 
    ``$230'';
        (3) in subsection (c), by striking ``$348'' and inserting 
    ``$356'';
        (4) in subsection (d), by striking ``$501'' and inserting 
    ``$512'';
        (5) in subsection (e), by striking ``$712'' and inserting 
    ``$728'';
        (6) in subsection (f), by striking ``$901'' and inserting 
    ``$921'';
        (7) in subsection (g), by striking ``$1,135'' and inserting 
    ``$1,161'';
        (8) in subsection (h), by striking ``$1,319'' and inserting 
    ``$1,349'';
        (9) in subsection (i), by striking ``$1,483'' and inserting 
    ``$1,517'';
        (10) in subsection (j), by striking ``$2,471'' and inserting 
    ``$2,527'';
        (11) in subsection (k)--
            (A) by striking ``$89'' both places it appears and 
        inserting ``$91''; and
            (B) by striking ``$3,075'' and ``$4,313'' and inserting 
        ``$3,145'' and ``$4,412'', respectively;
        (12) in subsection (l), by striking ``$3,075'' and inserting 
    ``$3,145'';
        (13) in subsection (m), by striking ``$3,392'' and inserting 
    ``$3,470'';
        (14) in subsection (n), by striking ``$3,860'' and inserting 
    ``$3,948'';
        (15) in subsections (o) and (p), by striking ``$4,313'' each 
    place it appears and inserting ``$4,412'';
        (16) in subsection (r), by striking ``$1,851'' and ``$2,757'' 
    and inserting ``$1,893'' and ``$2,820'', respectively; and
        (17) in subsection (s), by striking ``$2,766'' and inserting 
    ``$2,829''.
    (b) Additional Compensation for Dependents.--Section 1115(1) of 
such title is amended--
        (1) in subparagraph (A), by striking ``$139'' and inserting 
    ``$142'';
        (2) in subparagraph (B), by striking ``$240'' and ``$70'' and 
    inserting ``$245'' and ``$71'', respectively;
        (3) in subparagraph (C), by striking ``$94'' and ``$70'' and 
    inserting ``$96'' and ``$71'', respectively;
        (4) in subparagraph (D), by striking ``$112'' and inserting 
    ``$114'';
        (5) in subparagraph (E), by striking ``$265'' and inserting 
    ``$271''; and
        (6) in subparagraph (F), by striking ``$222'' and inserting 
    ``$227''.
    (c) Clothing Allowance for Certain Disabled Veterans.--Section 1162 
of such title is amended by striking ``$662'' and inserting ``$677''.
    (d) Dependency and Indemnity Compensation for Surviving Spouses.--
        (1) New law dic.--Section 1311(a) of such title is amended--
            (A) in paragraph (1), by striking ``$1,067'' and inserting 
        ``$1,091''; and
            (B) in paragraph (2), by striking ``$228'' and inserting 
        ``$233''.
        (2) Old law dic.--The table in paragraph (3) of such section is 
    amended to read as follows:


----------------------------------------------------------------------------------------------------------------
                 ``Pay grade                     Monthly rate               Pay grade              Monthly rate
----------------------------------------------------------------------------------------------------------------
E-1..........................................            $1,091  W-4............................          $1,305
E-2..........................................            $1,091  O-1............................          $1,153
E-3..........................................            $1,091  O-2............................          $1,191
E-4..........................................            $1,091  O-3............................          $1,274
E-5..........................................            $1,091  O-4............................          $1,349
E-6..........................................            $1,091  O-5............................          $1,485
E-7..........................................            $1,129  O-6............................          $1,674
E-8..........................................            $1,191  O-7............................          $1,808
E-9..........................................           $1,2421  O-8............................          $1,985
W-1..........................................            $1,153  O-9............................          $2,123
W-2..........................................            $1,198  O-10...........................         $2,3282
W-3..........................................            $1,234
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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
  $1,342.
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 $2,499.''


        (3) Additional dic for children or disability.--Section 1311 of 
    such title is amended--
            (A) in subsection (b), by striking ``$265'' and inserting 
        ``$271'';
            (B) in subsection (c), by striking ``$265'' and inserting 
        ``$271''; and
            (C) in subsection (d), by striking ``$126'' and inserting 
        ``$128''.
    (e) Dependency and Indemnity Compensation for Children.--
        (1) Dic when no surviving spouse.--Section 1313(a) of such 
    title is amended--
            (A) in paragraph (1), by striking ``$452'' and inserting 
        ``$462'';
            (B) in paragraph (2), by striking ``$649'' and inserting 
        ``$663'';
            (C) in paragraph (3), by striking ``$846'' and inserting 
        ``$865''; and
            (D) in paragraph (4), by striking ``$846'' and ``$162'' and 
        inserting ``$865'' and ``$165'', respectively.
        (2) Supplemental dic for certain children.--Section 1314 of 
    such title is amended--
            (A) in subsection (a), by striking ``$265'' and inserting 
        ``$271'';
            (B) in subsection (b), by striking ``$452'' and inserting 
        ``$462''; and
            (C) in subsection (c), by striking ``$225'' and inserting 
        ``$230''.
    (f) Effective Date.--The amendments made by this section shall take 
effect on December 1, 2007.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.

Summary: Veterans' Compensation Cost-of-Living Adjustment Act of 2008 - Directs the Secretary of Veterans Affairs to increase, as of December 1, 2008, the rates of veterans' disability compensation, additional compensation for dependents, the clothing allowance for certain disabled adult children, and dependency and indemnity compensation for surviving spouses and children. Requires each such increase to be the same percentage as the increase in benefits provided under title II of the Social Security Act, on the same effective date. Codifies rate amounts as increased under the Veterans' Compensation Cost-of-Living Adjustment Act of 2007.