IB 

Union Calendar No. 302 

108TH CONGRESS 

2D SESSION H. R. 4175 

[Report No. 108–524] 

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. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 20, 2004 

Mr. SMITH of New Jersey (for himself, Mr. EVANS, Mr. BROWN of South 

Carolina, and Mr. MICHAUD) introduced the following bill; which was referred to the Committee on Veterans’ Affairs 

JUNE 3, 2004 

Additional sponsors: Mr. FILNER, Mr. GUTIERREZ, Mr. HOLDEN, Mr. BRADY

of Pennsylvania, Mr. GRIJALVA, Mr. RODRIGUEZ, Mr. BILIRAKIS, and 

Mr. RAHALL

JUNE 3, 2004 

Reported with an amendment, committed to the Committee of the Whole 

House on the State of the Union, and ordered to be printed 

[Strike out all after the enacting clause and insert the part printed in italic] 

[For text of introduced bill, see copy of bill as introduced on April 20, 2004] 

A BILL 

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 in-
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demnity compensation for survivors of certain serviceconnected disabled veterans, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as ‘‘Veterans’ Compensation 

5 Cost-of-Living Adjustment Act of 2004’’. 

6 SEC. 2. INCREASE IN RATES OF DISABILITY COMPENSA7 TION AND DEPENDENCY AND INDEMNITY 

8 COMPENSATION. 

9 (a) RATE ADJUSTMENT.—The Secretary of Veterans 

10 Affairs shall, effective on December 1, 2004, increase the 

11 dollar amounts in effect for the payment of disability com12 pensation and dependency and indemnity compensation by 

13 the Secretary, as specified in subsection (b). 

14 (b) AMOUNTS TO BE INCREASED.—The dollar 

15 amounts to be increased pursuant to subsection (a) are 

16 the following: 

17 (1) COMPENSATION.—Each of the dollar 

18 amounts in effect under section 1114 of title 38, 

19 United States Code. 

20 (2) ADDITIONAL COMPENSATION FOR DEPEND21 ENTS.—Each of the dollar amounts in effect under 

22 section 1115(1) of such title. 

23 (3) CLOTHING ALLOWANCE.—The dollar 

24 amount in effect under section 1162 of such title. 
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1 (4) NEW DIC RATES.—The dollar amounts in 

2 effect under paragraphs (1) and (2) of section 

3 1311(a) of such title. 

4 (5) OLD DIC RATES.—Each of the dollar 

5 amounts in effect under section 1311(a)(3) of such 

6 title. 

7 (6) ADDITIONAL DIC FOR SURVIVING SPOUSES

8 WITH MINOR CHILDREN.—The dollar amount in ef9 fect under section 1311(b) of such title. 

10 (7) ADDITIONAL DIC FOR DISABILITY.—The 

11 dollar amounts in effect under sections 1311(c) and 

12 1311(d) of such title. 

13 (8) DIC FOR DEPENDENT CHILDREN.—The 

14 dollar amounts in effect under sections 1313(a) and 

15 1314 of such title. 

16 (c) DETERMINATION OF INCREASE.—(1) The in17 crease under subsection (a) shall be made in the dollar 

18 amounts specified in subsection (b) as in effect on Novem19 ber 30, 2004. 

20 (2) Except as provided in paragraph (3), each such 

21 amount shall be increased by the same percentage as the 

22 percentage by which benefit amounts payable under title 

23 II of the Social Security Act (42 U.S.C. 401 et seq.) are 

24 increased effective December 1, 2004, as a result of a de-
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1 termination under section 215(i) of such Act (42 U.S.C. 

2 415(i)). 

3 (3) Each dollar amount increased pursuant to para4 graph (2) shall, if not a whole dollar amount, be rounded 

5 down to the next lower whole dollar amount. 

6 (d) SPECIAL RULE.—The Secretary may adjust ad7 ministratively, consistent with the increases made under 

8 subsection (a), the rates of disability compensation pay9 able to persons within the purview of section 10 of Public 

10 Law 85–857 (72 Stat. 1263) who are not in receipt of 

11 compensation payable pursuant to chapter 11 of title 38, 

12 United States Code. 

13 SEC. 3. PUBLICATION OF ADJUSTED RATES. 

14 At the same time as the matters specified in section 

15 215(i)(2)(D) of the Social Security Act (42 U.S.C. 

16 415(i)(2)(D)) are required to be published by reason of 

17 a determination made under section 215(i) of such Act 

18 during fiscal year 2005, the Secretary of Veterans Affairs 

19 shall publish in the Federal Register the amounts specified 

20 in subsection (b) of section 2, as increased pursuant to 

21 that section. 

22 SECTION 1. SHORT TITLE. 

23 This Act may be cited as ‘‘Veterans’ Compensation 

24 Cost-of-Living Adjustment Act of 2004’’. 
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1 SEC. 2. INCREASE IN RATES OF DISABILITY COMPENSATION 

2 AND DEPENDENCY AND INDEMNITY COM3 PENSATION. 

4 (a) RATE ADJUSTMENT.—The Secretary of Veterans 

5 Affairs shall, effective on December 1, 2004, increase the dol6 lar amounts in effect for the payment of disability com7 pensation and dependency and indemnity compensation by 

8 the Secretary, as specified in subsection (b). 

9 (b) AMOUNTS TO BE INCREASED.—The dollar 

10 amounts to be increased pursuant to subsection (a) are the 

11 following: 

12 (1) COMPENSATION.—Each of the dollar amounts 

13 in effect under section 1114 of title 38, United States 

14 Code. 

15 (2) ADDITIONAL COMPENSATION FOR DEPEND16 ENTS.—Each of the dollar amounts in effect under 

17 section 1115(1) of such title. 

18 (3) CLOTHING ALLOWANCE.—The dollar amount 

19 in effect under section 1162 of such title. 

20 (4) NEW DIC RATES.—The dollar amounts in ef21 fect under paragraphs (1) and (2) of section 1311(a) 

22 of such title. 

23 (5) OLD DIC RATES.—Each of the dollar 

24 amounts in effect under section 1311(a)(3) of such 

25 title. 
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1 (6) ADDITIONAL DIC FOR SURVIVING SPOUSES

2 WITH MINOR CHILDREN.—The dollar amount in effect 

3 under section 1311(b) of such title. 

4 (7) ADDITIONAL DIC FOR DISABILITY.—The dol5 lar amounts in effect under sections 1311(c) and 

6 1311(d) of such title. 

7 (8) DIC FOR DEPENDENT CHILDREN.—The dollar 

8 amounts in effect under sections 1313(a) and 1314 of 

9 such title. 

10 (c) DETERMINATION OF INCREASE.—(1) The increase 

11 under subsection (a) shall be made in the dollar amounts 

12 specified in subsection (b) as in effect on November 30, 

13 2004. 

14 (2) Except as provided in paragraph (3), each such 

15 amount shall be increased by the same percentage as the 

16 percentage by which benefit amounts payable under title II 

17 of the Social Security Act (42 U.S.C. 401 et seq.) are in18 creased effective December 1, 2004, as a result of a deter19 mination under section 215(i) of such Act (42 U.S.C. 

20 415(i)). 

21 (3) Each dollar amount increased pursuant to para22 graph (2) shall, if not a whole dollar amount, be rounded 

23 down to the next lower whole dollar amount. 

24 (d) SPECIAL RULE.—The Secretary may adjust ad25 ministratively, consistent with the increases made under 
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1 subsection (a), the rates of disability compensation payable 

2 to persons within the purview of section 10 of Public Law 

3 85–857 (72 Stat. 1263) who are not in receipt of compensa4 tion payable pursuant to chapter 11 of title 38, United 

5 States Code. 

6 SEC. 3. PUBLICATION OF ADJUSTED RATES. 

7 At the same time as the matters specified in section 

8 215(i)(2)(D) of the Social Security Act (42 U.S.C. 

9 415(i)(2)(D)) are required to be published by reason of a 

10 determination made under section 215(i) of such Act during 

11 fiscal year 2005, the Secretary of Veterans Affairs shall pub12 lish in the Federal Register the amounts specified in sub13 section (b) of section 2, as increased pursuant to that sec14 tion. 

15 SEC. 4. IMPROVED BENEFITS FOR FORMER PRISONERS OF 

16 WAR. 

17 Section 1112(b)(3) of title 38, United States Code, is 

18 amended by adding at the end the following new subpara19 graph: 

20 ‘‘(L) Osteoporosis.’’. 

21 SEC. 5. CODIFICATION OF COST-OF-LIVING ADJUSTMENT 

22 PROVIDED IN PUBLIC LAW 108–47. 

23 (a) VETERANS’ DISABILITY COMPENSATION.—Section 

24 1114 of title 38, United States Code, is amended— 
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1 (1) by striking ‘‘$104’’ in subsection (a) and in2 serting ‘‘$106’’; 

3 (2) by striking ‘‘$201’’ in subsection (b) and in4 serting ‘‘$205’’; 

5 (3) by striking ‘‘$310’’ in subsection (c) and in6 serting ‘‘$316’’; 

7 (4) by striking ‘‘$445’’ in subsection (d) and in8 serting ‘‘$454’’; 

9 (5) by striking ‘‘$633’’ in subsection (e) and in10 serting ‘‘$646’’; 

11 (6) by striking ‘‘$801’’ in subsection (f) and in12 serting ‘‘$817’’; 

13 (7) by striking ‘‘$1,008’’ in subsection (g) and 

14 inserting ‘‘$1,029’’; 

15 (8) by striking ‘‘$1,171’’ in subsection (h) and 

16 inserting ‘‘$1,195’’; 

17 (9) by striking ‘‘$1,317’’ in subsection (i) and 

18 inserting ‘‘$1,344’’; 

19 (10) by striking ‘‘$2,193’’ in subsection (j) and 

20 inserting ‘‘$2,239’’; 

21 (11) in subsection (k)— 

22 (A) by striking ‘‘$81’’ both places it appears 

23 and inserting ‘‘$82’’; and 

24 (B) by striking ‘‘$2,728’’ and ‘‘$3,827’’ and 

25 inserting ‘‘$2,785’’ and ‘‘$3,907’’, respectively; 
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1 (12) by striking ‘‘$2,728’’ in subsection (l) and 

2 inserting ‘‘$2,785’’; 

3 (13) by striking ‘‘$3,010’’ in subsection (m) and 

4 inserting ‘‘$3,073’’; 

5 (14) by striking ‘‘$3,425’’ in subsection (n) and 

6 inserting ‘‘$3,496’’; 

7 (15) by striking ‘‘$3,827’’ each place it appears 

8 in subsections (o) and (p) and inserting ‘‘$3,907’’; 

9 (16) by striking ‘‘$1,643’’ and ‘‘$2,446’’ in sub10 section (r) and inserting ‘‘$1,677’’ and ‘‘$2,497’’, re11 spectively; and 

12 (17) by striking ‘‘$2,455’’ in subsection (s) and 

13 inserting ‘‘$2,506’’. 

14 (b) ADDITIONAL COMPENSATION FOR DEPENDENTS.— 

15 Section 1115(1) of such title is amended— 

16 (1) by striking ‘‘$125’’ in subparagraph (A) and 

17 inserting ‘‘$127’’; 

18 (2) by striking ‘‘$215’’ and ‘‘$64’’ in subpara19 graph (B) and inserting ‘‘$219’’ and ‘‘$65’’, respec20 tively; 

21 (3) by striking ‘‘$85’’ and ‘‘$64’’ in subpara22 graph (C) and inserting ‘‘$86’’ and ‘‘$65’’, respec23 tively; 

24 (4) by striking ‘‘$101’’ in subparagraph (D) and 

25 inserting ‘‘$103’’; 
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1 (5) by striking ‘‘$237’’ in subparagraph (E) and 

2 inserting ‘‘$241’’; and 

3 (6) by striking ‘‘$198’’ in subparagraph (F) and 

4 inserting ‘‘$202’’. 

5 (c) CLOTHING ALLOWANCE FOR CERTAIN DISABLED

6 VETERANS.—Section 1162 of such title is amended by strik7 ing ‘‘$588’’ and inserting ‘‘$600’’. 

8 (d) DEPENDENCY AND INDEMNITY COMPENSATION FOR

9 SURVIVING SPOUSES.—(1) Section 1311(a) of such title is 

10 amended— 

11 (A) by striking ‘‘$948’’ in paragraph (1) and in12 serting ‘‘$967’’; and 

13 (B) by striking ‘‘$204’’ in paragraph (2) and in14 serting ‘‘$208’’. 

15 (2) The table in section 1311(a)(3) of such title is 

16 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 ................................ $1,1021 O–8 ................................ $1,758 

W–1 ................................ $1,022 O–9 ................................ $1,881 

W–2 ................................ $1,063 O–10 .............................. $2,0632

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. 
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‘‘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.’’. 

1 (3) Section 1311(b) of such title is amended by striking 

2 ‘‘$237’’ and inserting ‘‘$241’’. 

3 (4) Section 1311(c) of such title is amended by striking 

4 ‘‘$237’’ and inserting ‘‘$241’’. 

5 (5) Section 1311(d) of such title is amended by strik6 ing ‘‘$113’’ and inserting ‘‘$115’’. 

7 (e) DEPENDENCY AND INDEMNITY COMPENSATION FOR

8 CHILDREN.—(1) Section 1313(a) of such title is amended— 

9 (A) by striking ‘‘$402’’ in paragraph (1) and in10 serting ‘‘$410’’; 

11 (B) by striking ‘‘$578’’ in paragraph (2) and in12 serting ‘‘$590’’; 

13 (C) by striking ‘‘$752’’ in paragraph (3) and in14 serting ‘‘$767’’; and 

15 (D) by striking ‘‘$752’’ and ‘‘$145’’ in para16 graph (4) and inserting ‘‘$767’’ and ‘‘$148’’, respec17 tively. 

18 (2) Section 1314 of such title is amended— 

19 (A) by striking ‘‘$237’’ in subsection (a) and in20 serting ‘‘$241’’; 

21 (B) by striking ‘‘$402’’ in subsection (b) and in22 serting ‘‘$410’’; and 
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1 (C) by striking ‘‘$201’’ in subsection (c) and in2 serting ‘‘$205’’. 

Union Calendar No. 302 

108TH CONGRESS 

2D SESSION H. R. 4175 

[Report No. 108–524] 

A BILL 

To increase, effective as of December 1, 2004, the 

erans, and for other purposes. vivors of certain service-connected disabled vetpendency and indemnity compensation for surservice-connected disabilities and the rates of derates of disability compensation for veterans with 

JUNE 3, 2004 

Reported with an amendment, committed to the Comand ordered to be printed mittee of the Whole House on the State of the Union,