A bill to improve the veterans' and widows' pension program under title 38, United States Code, by increasing the maximum pension rates, by increasing the maximum annual income limitations, and by taking into account cost-of-living increases in the computation of pension rates.

Provides new pension rates for veterans with non-service-connected disabilities with respect to annual income for years after 1972, provided the monthly pension rate is not less than that which would have been received under the formula used prior to 1973.

Prescribes new pension rates for widows of veterans with respect to annual income for years after 1972.

Excludes from a veteran's annual income, payments made to a spouse under any public or private retirement, annuity, endowment program if such payments are based on the earnings of the spouse.

Takes into account cost-of-living increases in the computation of pension rates. (Amends 38 U.S.C. 521(b),(f), 541(b))