REFORM IN PAYMENT FORMULA.

SEC. 102. REFORM IN PAYMENT FORMULA. (a) Surviving Spouse Basic Rate.— Subsection (a) of section 1311 is amended by striking out the matter preceding the table and inserting in lieu thereof the following: “(a) (1) Dependency and indemnity compensation shall be paid to a surviving spouse at the monthly rate of $750. 106 STAT. 4322 “(2) The rate under paragraph (1) shall be increased by $165 in the case of the death of a veteran who at the time of death was in receipt of or was entitled to receive (or but for the receipt of retired pay or retirement pay was entitled to receive) compensation for a service-connected disability that was rated totally disabling for a continuous period of at least eight years immediately preceding death. In determining the period of a veteran’s disability for purposes of the preceding sentence, only periods in which the veteran was married to the surviving spouse shall be considered. “(3) In the case of dependency and indemnity compensation paid to a surviving spouse that is predicated on the death of a veteran before January 1, 1993, the monthly rate of such compensation shall be the amount based on the pay grade of such veteran, as set forth in the following table, if the amount is greater than the total amount determined with respect to that veteran under paragraphs (1) and (2):”. (b) Additional Rate for Surviving Spouse With Minor Children.— Subsection (b) of such section is amended by striking out “$71 for each such child” and inserting in lieu thereof “$100 for each such child during fiscal year 1993, $150 for each such child during fiscal year 1994, and $200 for each such child thereafter”. (c) Effective Date.— The amendments made by this section shall take effect on January 1, 1993. (d) Payment for Implementation of Revisions.— The costs of implementing, during fiscal years 1993 and 1994, any revisions in the payment of dependency and indemnity compensation to surviving spouses under section 1311 of title 38, United States Code, that result from the amendments made by subsections (a) and (b) shall be paid from amounts available to the Department of Veterans Affairs for the payment of compensation and pension.