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1.85-857 who are not in receipt of compensation payable

2 pursuant to chapter 11 of title 38, United States Code:

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SEC. 2. The tables appearing in subsections (b) (1), ́4 (c), and (d) of section 415 of such title, in subsections. (b) 5 and (c) of section 521 of such title, and in subsections (b)

6 and (c) of section 541 of such title are each amended→ (1) by striking out "$2,000" wherever it appears

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and inserting in lieu thereof "$2,600", and

(2) by striking out "$3,200" wherever it appears and inserting in lieu thereof "$3,800”.

11 SEC. 3. (a) Paragraph (5) of section 503 of title 38, 12 United States Code, is amended by inserting "and monthly 13 benefit payments" immediately after "lump sum death pay14 ments", and by inserting "and annuity or pension payments 15 under chapter 9 of title 45" immediately before the semi16 colon at the end thereof.

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(b) In computing the income of any person for the purpose of determining his eligibility for pension pursuant to the

provisions of the first sentence of section 9 (b) of the Vet20 erans' Pension Act of 1959, there shall be excluded the

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corpus of his estate and any monthly benefit payments pay22 able to such person under title II of the Social Security Act

23 and any annuity and pension payments payable to such per

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son under any public or private retirement plan to which the

2 veteran contributed during his working years.

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SEC. 4. Section 521 (f) (1) of such title is amended by

4 striking out "$1,200" and inserting in lieu thereof "$3,600". 5: SEC. 5. Sections 902 (a) and 903 (a) of such title are 6 each amended by striking out "$250" and inserting in lieu 7 thereof "$450".

8 SEC. 6. Section 5001 (a) (3) of such title is amended 9 by striking out "four thousand" and inserting in lieu thereof 10 "eight thousand”.

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SEC. 7. Section 612 (e) of such title is amended by

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12 striking out "or Indian wars" and inserting in lieu thereof

13 "or World War I or of the Indian wars".

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SEC. 8. Section 506 (a) (2) of such title is amended by 15 striking out the comma after "child" and inserting in lieu 16 thereof "or a person who has attained seventy years of age 17 and has been paid pension thereunder for two calendar years." SEC. 9. (a) As soon as possible after the beginning of 19 each calendar quarter, the Administrator of Veterans' Affairs 20 shall determine the extent by which the price index in the 21 preceding calendar quarter was higher than the price index 22 in the applicable base period (as those terms are defined 23 in subsection (e)). If he determines that the price index 24 had risen by a percentage (of its level in the base period) 25 equal to 3 per centum or more, the monthly rate of pension

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or dependency and indemnity compensation otherwise pay2 able to any person under title 38, United States Code, or 3 the first sentence of section 9 (b) of the Veterans' Pension 4 Act of 1959 shall be increased by the same percentage 5 (adjusted to the nearest one-tenth of 1 per centum), effec6 tive with respect to monthly benefits under such title or 7 Act of 1959 for months after the quarter in which the 8 determination is made.

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(b) In the case of any individual who first becomes 10 entitled to a pension or dependency and indemnity compen11 sation under such title in or after the month in which an 12 increase becomes effective under subsection (a), the amount 13 of the monthly rate payable to or with respect to him on 14 the basis of such entitlement shall be determined by applying 15 such increase (or, if more than one increase has become 16 effective under subsection (a), by applying all such increases 17 successively) to the amount of the monthly rate which would 18 be payable under the provisions of such title without regard 19 to this section.

20 (c) Any increase under subsection (a) shall apply with 21 respect to all monthly rates payable under such title or such 22 Act of 1959 during the period in which such increase is 23 effective regardless of the provisions under which such 24 monthly rates are payable or the manner in which such

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1 amounts are determined, but shall be applied with respect 2 to monthly rates payable to or with respect to any particular

3 individual only after all of the other provisions of such title

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or Act of 1959 which relate to eligibility for and the amount 5 of such rates, and all prior increases made in such rates under 6 this section, have been applied.

7 (d) If the amount of the increase in any monthly rate 8 under subsection (a) is not a multiple of $0.10, it shall be 9 raised to the next higher multiple of $0.10 in the case of a 10 multiple of $0.05 or adjusted to the nearest multiple of 11 $0.10 in any other case.

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(e) For the purposes of this section—

(1) the term "price index" means the Consumer Price Index (all items-United States city average) published monthly by the Bureau of Labor Statistics; and the average level of the price index for the three

months in any calendar quarter shall be deemed to be the level of the price index in such quarter; and

(2) the term "base period" means

(A) the calendar quarter commencing July 1, 1965, with respect to the first increase under subsection (a), and

(B) the calendar quarter immediately preceding the quarter in which the determination consti

tuting the basis of the most recent increase under

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subsection (a) was made, with respect to any in

crease under subsection (a) after the first such in

crease.

SEC. 10. The Administrator of Veterans' Affairs (here5 after referred to as the "Administrator") shall undertake a 6 study and investigation of sites in each of the fifty States 7 for use as Veterans' Administration cemeteries. Upon com8 pletion of such study and investigation, the Administrator 9 shall submit to the House Committee on Veterans' Affairs 10 and the Senate Finance Committee a report on the results of 11 such study and investigation together with his recommenda12 tion. The Administrator shall thereafter establish, operate, 13 and maintain Veterans' Administration cemeteries at such 14 places within such States as may be designated by the com15 mittees on the basis of the report submitted by him.

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SEC. 11. Paragraph (3) of section 101 of such title is 17 amended to read as follows:

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"(3) The term 'widow' means (except for purposes 19 of chapter 19 of this title) a woman who was the wife of a veteran at the time of his death, and who lived with him 21 continuously from the date of marriage to the date of his 22 death (except where there was a separation which was due to the misconduct of, or procured by, the veteran without 24 the fault of the wife) and who has not remarried or whose 25 remarriage has terminated or (in cases not involving re

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