A bill to increase, effective as of December 1, 2005, 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.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Veterans' Compensation Cost-of-
Living Adjustment Act of 2005''.

SEC. 2. INCREASE 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 ``$106'' and inserting 
    ``$112'';
        (2) in subsection (b), by striking ``$205'' and inserting 
    ``$218'';
        (3) in subsection (c), by striking ``$316'' and inserting 
    ``$337'';
        (4) in subsection (d), by striking ``$454'' and inserting 
    ``$485'';
        (5) in subsection (e), by striking ``$646'' and inserting 
    ``$690'';
        (6) in subsection (f), by striking ``$817'' and inserting 
    ``$873'';
        (7) in subsection (g), by striking ``$1,029'' and inserting 
    ``$1,099'';
        (8) in subsection (h), by striking ``$1,195'' and inserting 
    ``$1,277'';
        (9) in subsection (i), by striking ``$1,344'' and inserting 
    ``$1,436'';
        (10) in subsection (j), by striking ``$2,239'' and inserting 
    ``$2,393'';
        (11) in subsection (k)--
            (A) by striking ``$82'' both places it appears and 
        inserting ``$87''; and
            (B) by striking ``$2,785'' and ``$3,907'' and inserting 
        ``$2,977'' and ``$4,176'', respectively;
        (12) in subsection (l), by striking ``$2,785'' and inserting 
    ``$2,977'';
        (13) in subsection (m), by striking ``$3,073'' and inserting 
    ``$3,284'';
        (14) in subsection (n), by striking ``$3,496'' and inserting 
    ``$3,737'';
        (15) in subsections (o) and (p), by striking ``$3,907'' each 
    place it appears and inserting ``$4,176'';
        (16) in subsection (r), by striking ``$1,677'' and ``$2,497'' 
    and inserting ``$1,792'' and ``$2,669'', respectively; and
        (17) in subsection (s), by striking ``$2,506'' and inserting 
    ``$2,678''.
    (b) Additional Compensation for Dependents.--Section 1115(1) of 
such title is amended--
        (1) in subparagraph (A), by striking ``$127'' and inserting 
    ``$135'';
        (2) in subparagraph (B), by striking ``$219'' and ``$65'' and 
    inserting ``$233'' and ``$68'', respectively;
        (3) in subparagraph (C), by striking ``$86'' and ``$65'' and 
    inserting ``$91'' and ``$68'', respectively;
        (4) in subparagraph (D), by striking ``$103'' and inserting 
    ``$109'';
        (5) in subparagraph (E), by striking ``$241'' and inserting 
    ``$257''; and
        (6) in subparagraph (F), by striking ``$202'' and inserting 
    ``$215''.
    (c) Clothing Allowance for Certain Disabled Veterans.--Section 1162 
of such title is amended by striking ``$600'' and inserting ``$641''.
    (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 ``$967'' and inserting 
        ``$1,033''; and
            (B) in paragraph (2), by striking ``$208'' and inserting 
        ``$221''.
        (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..................................  $1,033                            W-4....................          $1,236
E-2..................................  $1,033                            O-1....................          $1,092
E-3..................................  $1,033                            O-2....................          $1,128
E-4..................................  $1,033                            O-3....................          $1,207
E-5..................................  $1,033                            O-4....................          $1,277
E-6..................................  $1,033                            O-5....................          $1,406
E-7..................................  $1,069                            O-6....................          $1,585
E-8..................................  $1,128                            O-7....................          $1,712
E-9..................................  $1,1771                           O-8....................          $1,879
W-1..................................  $1,092                            O-9....................          $2,010
W-2..................................  $1,135                            O-10...................         $2,2042
W-3..................................  $1,169                            .......................  ..............
 
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
  $1,271.
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 $2,365.''.

        (3) Additional dic for children or disability.--Section 1311 of 
    such title is amended--
            (A) in subsection (b), by striking ``$241'' and inserting 
        ``$257'';
            (B) in subsection (c), by striking ``$241'' and inserting 
        ``$257''; and
            (C) in subsection (d), by striking ``$115'' and inserting 
        ``$122''.
    (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 ``$410'' and inserting 
        ``$438'';
            (B) in paragraph (2), by striking ``$590'' and inserting 
        ``$629'';
            (C) in paragraph (3), by striking ``$767'' and inserting 
        ``$819''; and
            (D) in paragraph (4), by striking ``$767'' and ``$148'' and 
        inserting ``$819'' and ``$157'', respectively.
        (2) Supplemental dic for certain children.--Section 1314 of 
    such title is amended--
            (A) in subsection (a), by striking ``$241'' and inserting 
        ``$257'';
            (B) in subsection (b), by striking ``$410'' and inserting 
        ``$438''; and
            (C) in subsection (c), by striking ``$205'' and inserting 
        ``$218''.
    (f) Effective Date.--The amendments made by this section shall take 
effect on December 1, 2005.
    (g) Special Rule.--The Secretary may adjust administratively, 
consistent with the increases made under subsection (a), the rates of 
disability compensation payable to persons within the purview of 
section 10 of Public Law 85-857 (72 Stat. 1263) who are not in receipt 
of compensation payable pursuant to chapter 11 of title 38, United 
States Code.

                               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 2005 - Increases, as of December 1, 2005, the rates of veterans' disability compensation, additional compensation for dependents, the clothing allowance for certain disabled veterans, and dependency and indemnity compensation for surviving spouses and children.