President Signs Legislation to Increase Veterans' Disability Compensation Rates (Press Release - Wednesday, October 27, 2004)

by Chester Wisnesky, Jr., Department Commander

Washington - Disability compensation payments will receive a cost-of-living boost as a result of legislation authored by Congressman Chris Smith (NJ-4) and signed by President Bush this week. Smith, Chairman of the House Committee on Veterans Affairs, called the enactment of H.R. 4175, the Veterans' Compensation Cost-of-Living Adjustment Act of 2004, "a much-needed and justified bump up in the compensation we pay to our disabled veterans."

"Passage of H.R. 4175 is another important milestone in fulfilling our commitment to care for the men and women who have served our Nation," said Chairman Smith. "With enactment of my legislation, over 2.5 million disabled veterans will receive a COLA increase in their disability compensation to meet rising costs," he said.

For a 100% service-connected disabled veterans without dependents, the new monthly payment is expected to rise to approximately $2,300 per month, totaling $27,600 per year. Additional compensation is available for disabled veterans with dependent children and for other mitigating factors, such as residual effects of catastrophic disabilities.

The law signed by President Bush yesterday will also increase payments for almost 340,000 surviving widows and dependents of veterans who qualify under the Dependency and Indemnity Compensation (DIC) program. The DIC program provides monthly payments to widows and dependents of veterans who are killed while on duty, who die from service-connected disabilities, or who were 100% service connected disabled for at least ten years prior to their death.

H.R. 4175 becomes the twelfth veterans law written by Chairman Smith and signed by President Bush in the past four years. The other Smith veterans laws have boosted the GI Bill, enhanced health care programs, expanded compensation and transition benefits, and strengthened legal protections for veterans, active duty, Guard, and reserve members.

Veterans Compensation Cost-of-Living Adjustment Act of 2004

The Senate passed H.R. 4175 to increase 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. The assumed 2.7% increase will become effective as of December 1. 2004. The exact percentage will be determined later this month.

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