II 114th CONGRESS 2d Session S. 2851 IN THE SENATE OF THE UNITED STATES April 26, 2016 Mr. Thune (for himself and Mr. Schatz ) introduced the following bill; which was read twice and referred to the Committee on Veterans' Affairs A BILL To amend title 38, United States Code, to provide for annual cost-of-living adjustments to be made automatically by law each year in 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.

1. Short title This Act may be cited as the Veterans' Disability Compensation Automatic COLA Act . 2. Automatic annual increase in rates of disability compensation and dependency and indemnity compensation (a) Indexing to social security increases Section 5312 of title 38, United States Code, is amended by adding at the end the following new subsection: (d) (1) Whenever there is an increase in benefit amounts payable under title II of the Social Security Act ( 42 U.S.C. 401 et seq. ) as a result of a determination made under section 215(i) of such Act ( 42 U.S.C. 415(i) ), the Secretary shall, effective on the date of such increase in benefit amounts, increase the dollar amounts in effect for the payment of disability compensation and dependency and indemnity compensation by the Secretary, as specified in paragraph (2), as such amounts were in effect immediately before the date of such increase in benefit amounts payable under title II of the Social Security Act, by the same percentage as the percentage by which such benefit amounts are increased. (2) The dollar amounts to be increased pursuant to paragraph (1) are the following: (A) Compensation Each of the dollar amounts in effect under section 1114 of this title. (B) Additional compensation for dependents Each of the dollar amounts in effect under section 1115(1) of this title. (C) Clothing allowance The dollar amount in effect under section 1162 of this title. (D) New DIC rates Each of the dollar amounts in effect under paragraphs (1) and (2) of section 1311(a) of this title. (E) Old DIC rates Each of the dollar amounts in effect under section 1311(a)(3) of this title. (F) Additional DIC for surviving spouses with minor children The dollar amount in effect under section 1311(b) of this title. (G) Additional DIC for disability Each of the dollar amounts in effect under subsections (c) and (d) of section 1311 of this title. (H) DIC for dependent children Each of the dollar amounts in effect under sections 1313(a) and 1314 of this title. (3) Whenever there is an increase under paragraph (1) in amounts in effect for the payment of disability compensation and dependency and indemnity compensation, the Secretary shall publish such amounts, as increased pursuant to such paragraph, in the Federal Register at the same time as the material required by section 215(i)(2)(D) of the Social Security Act ( 42 U.S.C. 415(i)(2)(D) ) is published by reason of a determination under section 215(i) of such Act ( 42 U.S.C. 415(i) ). . (b) Effective date Subsection (d) of section 5312 of title 38, United States Code, as added by subsection (a) of this section, shall take effect on the first day of the first calendar year that begins after the date of the enactment of this Act.