Section 1: Short Title**
This Act may be cited as the “Veterans Disability Compensation Standardization Act.”
Section 2: Purpose
The purpose of this Act is to simplify and standardize the compensation payment structure for disabled veterans by removing dependency-based variations, thereby creating a single, consistent payment structure based solely on the veteran’s disability rating. This will reduce administrative burden, eliminate the need for continuous adjustments, and ensure disabled veterans receive fair and predictable compensation.
Section 3: Standardized Disability Compensation Payment
(a) Establishment of Standardized Rate:
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Single Payment Structure: Notwithstanding any other provision of law, the Department of Veterans Affairs (VA) shall implement a standardized disability compensation rate that is uniform for all veterans with the same level of disability rating, irrespective of their marital status, number of dependents, or changes to family composition.
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Base Rate Determination: Each level of disability rating shall receive compensation at the rate currently associated with a veteran rated at that level who is married with two dependents. This rate will serve as the new base payment amount for each disability level, and it will apply universally to all veterans at the same rating.
(b) Payment Calculation and Adjustment:
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Initial Rate Calculation: Upon enactment of this Act, the Secretary of the Department of Veterans Affairs shall calculate the standardized base rate for each disability rating level based on the rates paid to veterans with a “married with two dependents” status. This standardized rate will replace any other rate variations based on dependent status.
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Annual Cost-of-Living Adjustments (COLA): Standardized rates for each disability level shall continue to be adjusted for inflation and cost-of-living increases in accordance with existing VA protocols.
Section 4: Elimination of Dependent Reporting Requirements
(a) Dependent Reporting No Longer Required: Veterans receiving disability compensation under this Act will no longer be required to report changes in marital status or dependent status to the VA for the purpose of modifying compensation payments.
(b) Divorce, Separation, and Age-Out Provisions: In cases of divorce, separation, children reaching the age of majority, or any other changes in family status, no updates or modifications to the standardized payment amount shall be required. All veterans at a given disability rating level will continue to receive the standardized rate unaffected by family composition.
Section 5: Administrative Simplification and Transition
(a) Implementation Plan: The Secretary of the Department of Veterans Affairs shall develop an implementation plan within six (6) months of enactment to transition all current and new disability compensation payments to the standardized rate structure.
(b) Notice to Veterans: Within three (3) months of finalizing the implementation plan, the Secretary shall provide notice to all veterans receiving disability compensation explaining the changes, their new standardized payment rate, and an overview of the administrative simplification benefits.
(c) Transition Period: All existing VA disability compensation recipients will transition to the new standardized rate structure within twelve (12) months of the enactment of this Act. Veterans shall experience no reduction in their current compensation rate due to this transition.
Section 6: Rulemaking Authority
The Secretary of the Department of Veterans Affairs is authorized to prescribe rules and regulations necessary to implement and enforce the provisions of this Act.
Section 7: Severability
If any provision of this Act, or the application of such provision to any person or circumstance, is held to be invalid, the remainder of this Act, and the application of the provisions to any other person or circumstances, shall not be affected.
Section 8: Effective Date
This Act shall take effect immediately upon enactment, with implementation to be completed as outlined in Section 5.
Explanation:
This Act provides a streamlined and equitable disability compensation structure by standardizing payment amounts for veterans at each disability rating level. The elimination of dependent-related adjustments simplifies the administration process, reduces the need for periodic updates due to family changes, and offers consistent compensation to all disabled veterans. The payment rates are aligned to the “married with two dependents” standard for fairness and consistency, reducing administrative costs and ensuring that veterans’ compensation remains unaffected by personal circumstances.