H.R. 1220 Veterans’ Compensation Cost-of-living Adjustment Act of 2005

CHAIRMAN BUYER OF VETERANS’ AFFAIRS COMMITTEE INTRODUCES VETERANS’ COLA BILL

H.R. 1220, the Veterans’ Compensation Cost-of-living Adjustment Act of 2005

Washington, D.C. – Yesterday, Chairman Steve Buyer of the House Committee on Veterans’ Affairs introduced the Veterans’ Compensation Cost-of-Living Adjustment Act of 2005. Veterans’ Affairs Committee Ranking Member Lane Evans, as well as Jeff Miller of Florida and Shelley Berkley, Chairman and Ranking Member of the Subcommittee on Disability Assistance and Memorial Affairs, respectively, joined as original cosponsors of the bill.

“Nearly 3 million service-connected veterans and survivors of service-connected veterans will continue to utilize this resource and rely on this annual increase,” said Chairman Steve Buyer.

This bill would provide a cost-of-living adjustment to veterans’ benefits effective December 1, 2005. Additionally, the bill codifies the current disability compensation and dependency and indemnity compensation (DIC) rates. In addition to compensation, it increases the amount for additional compensation for dependants, the clothing allowance paid to veterans’ whose service-connected disability causes irreparable damage to their clothing and DIC for surviving spouses with minor children. Dependent children receiving DIC will also benefit from this increase.

The VA Committee periodically reviews the service-connected disability compensation and DIC programs to ensure that the benefits provide reasonable and adequate compensation for disabled veterans and their families. Based on this review, Congress acts annually to provide a cost-of-living adjustment in compensation and DIC benefits.

Congress has consistently provided increases in these rates for every fiscal year since 1976. The adjustment in cost-of-living is reflective of the economic shift annually. This is especially crucial to those veterans living on a fixed income. The Administration’s fiscal year 2006 budget submission includes funding for a projected 2.3 percent increase.

P R E S S R E L E A S E - Friday March 11, 2005 SOURCE: House Committee on Veterans' Affairs