A bill to amend title 38, United States Code, Chapters 15 and 51, to improve the death and disability pension program for veterans and their dependents.

Increases the annual rate of pension payable to the surviving spouse and children of a veteran of a period of war. Excludes the income of the person legally responsible for such child from any adjustments in pension rates. Grants each of two eligible veterans married to each other an individual rather than a combined pension. Excludes proceeds from specified government life insurance policies from determinations of annual income for pension purposes. Provides for annual rather than monthly reductions or discontinuances of pensions when a change of income occurs.