(B) Any amount of monthly transition pay-
ments payable under section 1204(b) of title 
38, United States Code (as so amended), that 
is specified by the Secretary for purposes of the 
proposal under section 204(3). 
(C) Any amount or duration of rehabilita-
tion transition allowances payable under section 
1204(c) of title 38, United States Code (as so 
amended), that is specified by the Secretary for 
purposes of the proposal under section 204(3). 
(5) TREATMENT OF VETERANS WITH PENDING 
CLAIMS.—In the case of a veteran whose claim for 
disability compensation under title 38, United States 
Code, is pending an initial decision from the Sec-
retary of Veterans Affairs, or is on appeal (whether 
before the Board of Veterans’ Appeals, the United 
States Court of Appeals for Veterans Claims, or oth-
erwise), as of the effective date of the implementa-
tion of the enhanced Department of Veterans Affairs 
disability compensation system (as determined in ac-
cordance with section 206), the Secretary shall treat 
such claim as a claim for compensation payable 
under chapter 11 of title 38, United States Code. 
(6) EFFECTIVE DATE.—Except as provided in 
paragraph (7), this subsection and the amendments 
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made by this subsection shall take effect, if at all, 
on the effective date of the implementation of the 
enhanced Department of Veterans Affairs disability 
compensation system as determined in accordance 
with section 206. 
(7) ANTICIPATION OF IMPLEMENTATION.—The 
Secretary of Veterans Affairs shall take appropriate 
actions to ensure that this subsection and the 
amendments 
made 
by 
this 
subsection 
are 
implementable on the effective date described in 
paragraph (6) in the event of the implementation of 
the enhanced Department of Veterans Affairs dis-
ability compensation system on that date. 
(c) EXPANDED RETROACTIVITY OF AWARD OF COM-
PENSATION.— 
(1) IN GENERAL.—Section 5110(g) of title 38, 
United States Code, is amended— 
(A) by inserting ‘‘(1)’’ after ‘‘(g)’’; and 
(B) by striking the second sentence and in-
serting the following new paragraph: 
‘‘(2) Subject to the limitation in paragraph (1) and 
except as provided in paragraph (3), an award or increase 
described in paragraph (1) may not be retroactive for 
more than one year from the date of application therefore 
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or the date of administrative determination of entitlement, 
whichever is earlier. 
‘‘(3) Subject to the limitation in paragraph (1), an 
award or increase described in that paragraph pursuant 
to the amendment to section 1155 of this title or chapter 
12 of this title made by section 207 of the Noble Warrior 
Act under an application therefor filed during the three- 
year period beginning on the effective date of the imple-
mentation of the enhanced Department of Veterans Af-
fairs disability compensation system (as determined in ac-
cordance with section 206 of that Act) may be retroactive 
for three years from the date of application or date of ad-
ministrative determination of entitlement, whichever is 
earlier.’’. 
(2) EFFECTIVE DATE.—The amendments made 
by this subsection shall take effect, if at all, on the 
effective date of the implementation of the enhanced 
Department of Veterans Affairs disability compensa-
tion system as determined in accordance with section 
206. 
(d) EXPEDITED CLAIMS PROCESSING DURING IM-
PLEMENTATION OF ENHANCED DISABILITY COMPENSA-
TION SYSTEM.— 
(1) IN GENERAL.—Effective as of the effective 
date of the implementation of the enhanced Depart-
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ment of Veterans Affairs disability compensation 
system as determined in accordance with section 
206, the Secretary of Veterans Affairs shall imple-
ment appropriate mechanisms to expedite the proc-
essing of claims anticipated to be submitted to the 
Secretary under that system during the three-year 
period beginning on the effective date of the imple-
mentation of that system. 
(2) ELEMENTS.—The mechanisms implemented 
under this subsection shall include the following: 
(A) Mechanisms for affording appropriate 
priority for processing among the claims sub-
mitted as described in paragraph (1). 
(B) Mechanisms for ensuring the appro-
priate allocation of personnel and resources of 
the Department of Veterans Affairs in order to 
facilitate an expedited processing of such 
claims. 
(C) Any other mechanisms that the Sec-
retary considers appropriate to facilitate an ex-
pedited processing of such claims. 
(3) CONSULTATION
IN
DEVELOPMENT
OF 
MECHANISMS.—The Secretary shall consult with ap-
propriate representatives of veterans services organi-
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zations in developing the mechanisms to be imple-
mented under this subsection. 
(4) ENHANCED
AUTHORITY
FOR
PROCESSING 
CLAIMS.— 
(A) IN
GENERAL.—Subject to subpara-
graph (B), during the five-year period begin-
ning on the effective date of the implementation 
of the enhanced Department of Veterans Af-
fairs disability compensation system, the Sec-
retary may waive any provision or limitation of 
law applicable to determinations on claims for 
compensation for veterans under title 38, 
United States Code, if the Secretary determines 
that the waiver of such provision or limitation 
will further the expedited processing of claims 
submitted as described in paragraph (1). 
(B) NOTICE
AND
WAIT.—The Secretary 
may not waive a provision or limitation of law 
under subparagraph (A) until 30 days after the 
date on which the Secretary submits to the 
Committee Veterans’ Affairs of the Senate and 
the Committee on Veterans’ Affairs of the 
House of Representatives a report setting 
forth— 
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(i) the provision or limitation of law 
to be waived and the duration of the waiv-
er; 
(ii) a statement of the reasons why 
the waiver of the provision or limitation of 
law will further the expedited processing of 
claims submitted as described in paragraph 
(1); and 
(iii) an estimate of the time antici-
pated to be required to complete the proc-
essing of claims under the waiver. 
SEC. 208. SUPPLEMENTAL SURVIVOR BENEFIT FOR SUR-
VIVORS OF VETERANS RETIRED FOR DIS-
ABILITY AFTER IMPLEMENTATION OF EN-
HANCED DEPARTMENT OF VETERANS AF-
FAIRS DISABILITY COMPENSATION SYSTEM. 
(a) SUPPLEMENTAL SURVIVOR BENEFIT.— 
(1) IN GENERAL.—Part II of title 38, United 
States Code, as amended by section 207(b) of this 
Act, is further amended by inserting after chapter 
13 the following new chapter: 
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‘‘CHAPTER 14—SUPPLEMENTAL SURVIVOR 
BENEFIT FOR SURVIVORS OF VET-
ERANS 
RETIRED 
FOR 
DISABILITY 
AFTER 
IMPLEMENTATION 
OF 
EN-
HANCED DEPARTMENT OF VETERANS 
AFFAIRS DISABILITY COMPENSATION 
SYSTEM 
‘‘Sec. 
‘‘1401. Definition. 
‘‘1402. Election of benefit. 
‘‘1403. Receipt of benefit. 
‘‘1404. Reduction of compensation; termination of reduction. 
‘‘1405. Offset for dependency and indemnity compensation. 
‘‘§ 1401. Definition 
‘‘In this chapter, the term ‘covered veteran’ means 
a veteran retired under subchapter II of chapter 61 of title 
10 pursuant to section 1206a of that title who is entitled 
to compensation for service-connected disability under 
chapter 12 of this title. 
‘‘§ 1402. Election of benefit 
‘‘(a) IN GENERAL.—A covered veteran may elect in 
accordance with this section to provide a monthly supple-
mental survivor benefit under this chapter to the veteran’s 
survivors as follows: 
‘‘(1) The surviving spouse of the veteran. 
‘‘(2) The surviving children of the veteran. 
‘‘(b) ELECTION BY VETERANS AT AWARD OF COM-
PENSATION.—(1) If, at the time of the award of com-
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pensation for service-connected disability under chapter 12 
of this title that qualifies such veteran as a covered vet-
eran, a veteran has a spouse, one or more children, or 
both, the veteran shall elect to whom to provide a supple-
mental survivor benefit under this chapter. 
‘‘(2) A veteran may provide the supplemental survivor 
benefit referred to in paragraph (1) pursuant to an elec-
tion under this paragraph— 
‘‘(A) if the veteran has only a spouse at the 
time of the election, to the surviving spouse of the 
veteran; 
‘‘(B) if the veteran has both a spouse and one 
or more children at the time of the election— 
‘‘(i) to the surviving spouse of the veteran; 
or 
‘‘(ii) to the surviving children of the vet-
eran; or 
‘‘(C) if the veteran is unmarried but has one or 
more children at the time of the election, to the sur-
viving children of the veteran. 
‘‘(3)(A) If a veteran described by paragraph (2)(B) 
elects pursuant to paragraph (1) to provide a supple-
mental survivor benefit under this chapter to the surviving 
children of the veteran, the Secretary shall notify the vet-
eran’s spouse of the election. 
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‘‘(B) A veteran who makes an election described by 
subparagraph (A) may later elect instead to provide a sup-
plemental survivor benefit under this chapter to the sur-
viving spouse of the veteran, but only if the veteran sub-
mits the election under this subparagraph to the Secretary 
not later than 30 days after the date of the submittal of 
the election described by subparagraph (A) to the Sec-
retary. 
‘‘(4)(A) Except as provided in subparagraph (B), an 
election pursuant to this subsection shall be effective as 
of the first day of the first month after the election is 
received by the Secretary. 
‘‘(B) An election pursuant to this subsection that is 
described by paragraph (3) shall be effective as of the first 
day of the first month that begins more than 30 days after 
the election described by paragraph (3)(A) is received by 
the Secretary. 
‘‘(5) Except as provided in subsection (c), a veteran 
who does not make the election provided in this subsection 
at the time described in paragraph (1) may not provide 
a supplemental survivor benefit under this chapter. 
‘‘(6) Except as provided in subsections (c), (d), and 
(e), an election pursuant to this subsection is irrevocable. 
‘‘(c) ELECTION
BY VETERANS NOT MARRIED
AT 
AWARD OF COMPENSATION WHO LATER MARRY.—(1) A 
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veteran who is unmarried at the time of the award of com-
pensation for service-connected disability under chapter 12 
of this title that qualifies the veteran as a covered veteran 
and who later marries may elect to provide a supplemental 
survivor benefit under this chapter to the spouse of the 
veteran by such marriage. 
‘‘(2) An election pursuant to this subsection shall be 
effective only if received by the Secretary not later than 
60 days after the date of the marriage concerned. 
‘‘(3) An election pursuant to this subsection shall be 
effective as of the first day of the first month after the 
date the election is received by the Secretary. 
‘‘(4) An election of a veteran pursuant to this sub-
section supersedes the election, if any, of the veteran de-
scribed in subsection (b)(2)(C). 
‘‘(5) Except as provided in subsection (e), an election 
pursuant to this subsection is irrevocable. 
‘‘(d) ELECTION BY VETERANS MARRIED AT AWARD 
OF COMPENSATION WHO LATER REMARRY.—(1) A vet-
eran who is married at the time of the award of compensa-
tion for service-connected disability under chapter 12 of 
this title that qualifies the veteran as a covered veteran, 
who made an election provided in subsection (b) at that 
time, and who later remarries may elect to provide a sup-
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plemental survivor benefit under this chapter to the spouse 
of the veteran by such remarriage. 
‘‘(2) An election pursuant to this subsection shall be 
effective only if received by the Secretary not later than 
60 days after the date of the marriage concerned. 
‘‘(3) An election pursuant to this subsection shall be 
effective as of the first day of the first month after the 
date the election is received by the Secretary. 
‘‘(4) An election of a veteran pursuant to this sub-
section supersedes the election of the veteran under sub-
section (b). 
‘‘(5) Except as provided in subsection (e), an election 
pursuant to this subsection is irrevocable. 
‘‘(e) REVOCATION OF ELECTION OF SPOUSE ELIGI-
BILITY.—(1) A covered veteran who has made an election 
under this section to provide a supplemental survivor ben-
efit to the surviving spouse of the veteran may revoke the 
election. 
‘‘(2)(A) Except as provided in subparagraph (B), a 
veteran may revoke an election under this subsection only 
with the concurrence of the veteran’s spouse. 
‘‘(B) A veteran may revoke an election under this 
subsection without the concurrence of the veteran’s spouse 
if the veteran demonstrates to the satisfaction of the Sec-
retary that— 
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‘‘(i) the whereabouts of the spouse cannot be 
determined; or 
‘‘(ii) because of exceptional circumstances, a re-
quirement that the veteran seek the concurrence of 
the spouse would be unreasonable. 
‘‘(3) A revocation of an election under this subsection 
is irrevocable. 
‘‘(f) FORM OF ELECTIONS.—Any election under this 
section (including a revocation of election under subsection 
(e)) shall be made in writing. 
‘‘(g) NOTICE REGARDING ELECTIONS.—The Sec-
retary shall take appropriate actions to inform covered 
veterans of the elections available to covered veterans 
under this subsection, including the procedures and dead-
lines applicable to the making of such elections. 
‘‘§ 1403. Receipt of benefit 
‘‘(a) IN GENERAL.—(1) Effective as of the first day 
of the first month after the month in which a covered vet-
eran who has made an election under section 1402 of this 
title dies, a monthly supplemental survivor benefit under 
this chapter in an amount equal to 55 percent of the 
monthly compensation payable to the veteran under sec-
tion 1203(a) of this title at the time of the veteran’s death 
shall be payable to the individual or individuals provided 
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for in such election in force at the time of the veteran’s 
death. 
‘‘(2) Any payment of a supplemental survivor benefit 
under this section to the surviving children of a veteran 
shall be paid to the surviving children in equal shares. 
‘‘(b) ELIGIBILITY OF SURVIVING SPOUSE.—(1) In 
the event of the death of a surviving spouse being paid 
a supplemental survivor benefit under subsection (a), the 
surviving spouse shall be ineligible for the benefit effective 
as of the first day of the first month after the date of 
the surviving spouse’s death. 
‘‘(2)(A) In the event a surviving spouse being paid 
a supplemental survivor benefit under subsection (a) re-
marries before reaching the age of 55, the surviving 
spouse shall be ineligible for the benefit effective as of the 
first day of the first month after the date of the surviving 
spouse’s remarriage. 
‘‘(B) If the remarriage of a surviving spouse covered 
by subparagraph (A) is terminated by the death of the 
surviving spouses’s spouse, annulment, or divorce, the eli-
gibility of the surviving spouse for the benefit shall recom-
mence effective as of the first day of the first month after 
the date on which the remarriage is so terminated. 
‘‘(3) A surviving spouse who is otherwise eligible for 
payment of more than one supplemental survivor benefit 
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under subsection (a) based on marriages to more than one 
covered veteran shall elect which marriage shall entitle the 
surviving spouse to payment of the benefit for purposes 
of this chapter. Any election under this paragraph is irrev-
ocable. 
‘‘(c) ELIGIBILITY OF SURVIVING CHILDREN.—(1) In 
the event the surviving spouse of a veteran becomes ineli-
gible for payment of a supplemental survivor benefit under 
subsection (b), the surviving children of the veteran shall 
become eligible for the benefit effective as of the first day 
of the first month after the date in which the surviving 
spouse becomes so ineligible. 
‘‘(2) In the event the surviving spouse of a veteran 
becomes re-eligible for payment of a supplemental survivor 
benefit under subsection (b)(2)(B), the surviving children 
of the veteran shall be ineligible for the benefit effective 
as of the first day of the first month after the date in 
which the surviving spouse becomes so re-eligible. 
‘‘(3) In the event of the death of a surviving child 
being paid a supplemental survivor benefit, the surviving 
child shall be ineligible for the benefit effective as of the 
first day of the first month after the surviving child’s 
death, and the payment of the benefit to the remaining 
surviving children (if any) of the veteran concerned shall 
be adjusted accordingly effective as of that day. 
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‘‘§ 1404. Reduction of compensation; termination of 
reduction 
‘‘(a) REDUCTION OF COMPENSATION.—Effective as 
of the effective date of an election of a covered veteran 
under section 1402 of this title to provide a monthly sup-
plemental survivor benefit under this chapter (as deter-
mined in accordance with applicable provisions of section 
1402 of this title), the amount of monthly compensation 
for service-connected disability otherwise payable to the 
veteran under section 1203(a) of this title shall be reduced 
by an amount equal to 6.5 percent of the amount of such 
monthly compensation. 
‘‘(b) TERMINATION OF REDUCTION IN CONNECTION 
WITH BENEFIT FOR SURVIVING SPOUSE.—(1) In the case 
of a covered veteran who has elected to provide a supple-
mental survivor benefit under this chapter to the surviving 
spouse of the veteran, the reduction required by subsection 
(a) shall terminate effective as of the first day of the first 
month after— 
‘‘(A) the death of the spouse; 
‘‘(B) the revocation of the eligibility of the 
spouse for the benefit under section 1402(e) of this 
title; or 
‘‘(C) the dissolution of the veteran’s marriage 
to the spouse through annulment or divorce. 
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‘‘(2) If after the reduction required by subsection (a) 
is terminated under paragraph (1)(C) a veteran elects 
under section 1402(d) of this title to provide the benefit 
to the surviving spouse of the remarriage covered by such 
section 1402(d), the reduction required by subsection (a) 
shall recommence effective as of the first day of the first 
month after the date of the remarriage, and shall be sub-
ject to subsequent termination in accordance with para-
graph (1). 
‘‘(c) TERMINATION OF REDUCTION IN CONNECTION 
WITH BENEFIT FOR SURVIVING CHILDREN.—In the case 
of a covered veteran who has elected to provide a supple-
mental survivor benefit under this chapter to the surviving 
children of the veteran, the reduction required by sub-
section (a) shall terminate effective as of the first day of 
the first month after— 
‘‘(1) the date of death of the last child of the 
veteran; or 
‘‘(2) the date on which the last of the children 
of the veteran is no longer treatable as a child under 
section 101 of this title. 
‘‘(d) LIMITATION ON NUMBER OF MONTHS SUBJECT 
TO REDUCTION.—The total number of months for which 
the monthly compensation of a covered veteran is reduced 
under subsection (a) may not exceed 360 months. 
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‘‘§ 1405. Offset for dependency and indemnity com-
pensation 
‘‘(a) IN GENERAL.—If an individual eligible for pay-
ment of a monthly supplemental survivor benefit under 
this chapter based on the death of a covered veteran is 
or becomes entitled to dependency and indemnity com-
pensation under chapter 13 of this title based on the death 
of the veteran, the amount of the supplemental survivor 
benefit paid the individual under this chapter for a month 
is the amount of the benefit otherwise payable to the indi-
vidual under section 1403 of this title for that month 
minus the amount of the dependency and indemnity com-
pensation so payable to the individual for that month. 
‘‘(b) EFFECTIVE DATE.—The reduction of benefit of 
an individual required by subsection (a) shall be effective 
as of the date of the commencement of the payment of 
dependency and indemnity compensation to the individual 
under chapter 13 of this title. 
‘‘(c) REIMBURSEMENT
OF REDUCTION
IN COM-
PENSATION.—(1) If as a result of subsection (a) no benefit 
otherwise payable to an individual under section 1403 of 
this title with respect to a covered veteran is payable to 
the individual under this chapter, an amount shall be paid 
to the individual equal to the aggregate amount of the re-
duction under section 1404(a) of this title of the monthly 
compensation otherwise payable to the veteran. 
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‘‘(2) If as a result of subsection (a) the amount of 
monthly benefit otherwise payable to an individual under 
section 1403 of this title with respect to a covered veteran 
is reduced (other than to zero), an amount shall be paid 
to the individual equal to— 
‘‘(A) the aggregate amount of the reduction 
under section 1404(a) of this title of the monthly 
compensation otherwise payable to the veteran; mul-
tiplied by 
‘‘(B) a number equal to 1 minus an amount 
equal to the fraction— 
‘‘(i) whose numerator is the amount of the 
monthly benefit payable to the individual under 
section 1403 of this title as a result of the re-
duction under subsection (a); and 
‘‘(ii) whose denominator is the amount of 
the monthly benefit otherwise payable to the in-
dividual under section 1403 of this title without 
regard to the reduction under subsection (a). 
‘‘(3) Any amount payable under this subsection shall 
be paid, at the election of the Secretary, in a lump sum 
or in such installments as the Secretary shall specify for 
purposes of this subsection.’’. 
(2) CLERICAL
AMENDMENTS.—The tables of 
chapters at the beginning of title 38, United States 
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Code, and the beginning of part II of such title, as 
amended by section 207(b) of this Act, are each fur-
ther amended by inserting after the item relating to 
chapter 13 the following new item: 
‘‘14. Supplemental survivor benefit for survivors of vet-
erans retired for disability after implemen-
tation of enhanced Department of Veterans 
Affairs disability compensation system ........ 1401’’. 
(b) EFFECTIVE DATE.—Except as provided in sub-
section (c), this section and the amendments made by this 
section shall take effect, if at all, on the effective date of 
the implementation of the enhanced Department of Vet-
erans Affairs disability compensation system as deter-
mined in accordance with section 206. 
(c) ANTICIPATION OF IMPLEMENTATION.—The Sec-
retary of Veterans Affairs shall take appropriate actions 
to ensure that the amendments made by this section are 
implementable on the effective date described in sub-
section (b) in the event of the implementation of the en-
hanced Department of Veterans Affairs disability com-
pensation system on that date. 
Æ 
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