Statement by Assistant
to the President for Press Relations Fitzwater on the Veterans' Compensation
Cost-of-Living Adjustment Act of 1987
The
President today signed H.R. 2945, the Veterans' Compensation Cost-of-Living
Adjustment Act of 1987. This legislation will provide, as proposed by the
administration, a 4.2-percent cost-of-living increase in the monthly benefit
checks of over 2.2 million veterans with service-connected disabilities and
their dependents and to about 310,000 surviving spouses and children of
veterans whose deaths were service-connected. The 4.2-percent increase is the
same as the percentage increase that Social Security beneficiaries and veterans
pensioners will receive.
The
increase is effective December 1 and payable at the beginning of January.
However, the substantial lead time required to make computer system changes
will result in March payments being the first to reflect the increase. The
March payment will also include a lump sum adjustment for the January and
February payments.
The
administration earlier this year submitted to the Congress a legislative
proposal to make the cost-of-living adjustment automatic for veterans'
compensation programs. This would place compensation recipients on par with
veterans' pension and Social Security recipients, who will see the 4.2-percent
increase in their January payments. Enactment of the administration's
legislative proposal will assure a similar delay will not occur again.
Note: H.R. 2945,
approved December 31, was assigned Public Law No. 100 - 227.