Following are excerpts of Senator Thune's testimony:
Passing this legislation provides automatic cost-of-living adjustments to benefits each year for two groups of great Americans - those who have been disabled in military service to their country and survivors of those who have given their life in military service to our country. This legislation not only protects these benefits from inflation, but also sends a strong message of support from Congress to these deserving individuals.
In the last 10 years, the average rate of inflation has been around 3 percent per year and it now takes over one-hundred thirty dollars to purchase what you could purchase for one-hundred dollars ten years ago. That doesn't sound like much, but it means a lot to those on fixed incomes.
[T]his measure gives our disabled veterans peace of mind in knowing their benefits will maintain purchasing power.
Senator Thune's legislation seeks to provide automatic cost of living adjustments for our nation's disabled veterans - similar to the automatic adjustment that Social Security beneficiaries currently receive.
Please find below the full transcript of Senator Thune's testimony.
May 7, 2008
Chairman Akaka, Ranking Member Burr,
Let me begin by expressing my heartfelt thanks to you for your leadership on veterans issues and for giving me this opportunity to speak in support of my bill, S. 161, The Veterans' Disability Compensation Automatic Cost of Living Adjustment Act. The bill has the bipartisan support of Senator Tester and Senator Snowe, and I very much appreciate their support. It is a pleasure to come before this committee to offer testimony on what I consider to be an extremely important issue.
I respectfully request the committee pass S. 161 in a timely manner, so that the full Senate may consider it. This bill would automatically increase the rates of disability compensation and dependency and indemnity compensation by the same rate for which Social Security increases its rate each year. Passing this legislation provides automatic cost-of-living adjustments to benefits each year for two groups of great Americans - those who have been disabled in military service to their country and survivors of those who have given their life in military service to our country. This legislation not only protects these benefits from inflation, but also sends a strong message of support from Congress to these deserving individuals.
Everyone understands that inflation erodes the purchasing power of all Americans. Everywhere we look, it seems prices are going up. In the last 10 years, the average rate of inflation has been around 3% per year and it now takes over $130 dollars to purchase what you could purchase for $100 dollars ten years ago. That doesn't sound like much, but it means a lot to those on fixed incomes. These price increases especially affect disabled veterans and their families, as they may be unable to work long hours or at all due to their service connected disabilities. Additionally, many veterans' survivors also depend on cost-of-living adjustments to keep pace with inflation.
To be fair, I am not arguing the Congress has stood idly by and not acted on cost-of-living adjustments. Indeed, this is not the case as annual COLA bills have been passed on time every year. In fact, here are the results of votes cast on similar cost-of-living adjustments for disabled veterans' measures in the last five years:
- 2007 - Passed Senate by Unanimous Consent, Passed House by a vote of 418-0
2006 - Passed Senate by Unanimous Consent, Passed House by voice vote
2005 - Passed Senate by Unanimous Consent, Passed House by voice vote
2004 - Passed Senate by Unanimous Consent, Passed House by a vote of 421-0
2003 - Passed Senate by Unanimous Consent, Passed House by a vote of 426-0
I could go on, but I think the point is made. Ultimately, the question is this: if we pass this measure every year with such overwhelming support, why can't we just make it automatic? Furthermore, our Social Security recipients receive an automatic COLA increase every year, with no requirement of an act of Congress, and I think it's only fair that our disabled veterans receive the same automatic COLA increase.
Passing this measure gives our disabled veterans peace of mind in knowing their benefits will maintain purchasing power. I think passage of this measure would send a powerful message to our disabled veterans, their survivors, and their families. It sends the message that we value the sacrifices they have made for the good of all Americans, and it sends the message that we thank them for their service. It is also important to consider that the Congressional Budget Office already assumes a COLA increase for disabled veterans in its baseline, and therefore have informally informed my staff that S. 161 would have no budgetary effect, and no cost associated with passage of this bill.
Chairman Akaka and Ranking Member Burr, I respectfully ask that the committee promptly act on this legislation so that it can be passed with what I think would be overwhelming support in the full Senate. Thank you again for holding this hearing and for all you do on behalf of our veterans.