Veterans to receive annual cost-of-living adjustment
S. 2562, as amended, the Veterans’ Compensation Cost- of-Living Adjustment Act of 2006

Washington, D.C. – On October 16, 2006, President Bush signed into law S. 2562, the Veterans’ Compensation Cost-of-Living Adjustment Act of 2006.  S. 2562 passed the House on September 30, 2006.  The law provides, effective December 1, 2006, a 3.3 percent cost-of-living adjustment (COLA) to the rates of disability compensation for veterans with service-connected disabilities and the rates of dependency and indemnity compensation paid to the survivors of certain service-disabled veterans. 

The increase exceeded the 2.6 percent projected in the administration’s Fiscal Year 2007 budget request. The COLA, based on the rise in the Bureau of Labor Statistics’ Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), is equal to that received by Social Security recipients.

“I am pleased that we are able to provide for this important cost-of-living adjustment to the benefits provided to our nation’s disabled veterans and their survivors,” said Chairman Steve Buyer (R-Ind.). 

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