A bill to amend title 38, United States Code, to alter the method by which the Administrator of Veterans' Affairs computes cost-of-living increases in social security benefits for purposes of determining the amount of a veteran's pension or dependency and indemnity compensation.

Directs the Administrator of Veterans' Affairs to disregard cost-of-living increases in social security benefits when determining the amount of a veteran's pension or dependency and indemnity compensation. Requires the inclusion of such disregarded amount in the determination of eligibility and the amount of pension or compensation benefits if, within the 12-month period after any amount is disregarded, an increased in the level of Veterans' Administration benefits provided an individual occurs.