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Q872:  The VA took my separation pay once. I received full disability. Should this have been separate benefit?

A1:  Generally speaking, if you got some sort of separation payment and subsequently receive VA disability, then the VA will withhold payments until that type of separation payment is recouped. The rules on whether VA recoups or not can be found here: M21-1MR, Part III, Subpart v, Chapter 4, Section B.  (DS)  2/14/23

         

A2:   38 CFR 3.700 prohibits the Department of Veterans Affairs (VA) from paying compensation to a Veteran who also received certain separation benefits from the Department of Defense (DoD). These benefits include:

  • readjustment pay under former 10 U.S.C. 687 and 3814a
  • non-disability severance pay under 10 U.S.C. 1174(h)(2)
  • separation pay under 10 U.S.C. 1174
  • Reservists Involuntary Separation Pay (RISP)
  • Special Separation Benefit (SSB) under 10 U.S.C. 1174a
  • Voluntary Separation Pay (VSP) under 10 U.S.C. 1175a, and
  • disability severance pay under 10 U.S.C. 1212(c).

          

References: For more information about

  • readjustment pay under former 10 U.S.C. 3814a, see M21-1MR, Part III, Subpart v, 4.B.5.d
  • readjustment pay under former 10 U.S.C. 687, see M21-1MR, Part III, Subpart v, 4.B.5.e
  • non-disability severance pay, see M21-1MR, Part III, Subpart v, 4.B.5.g
  • separation pay under 10 U.S.C. 1174, see M21-1MR, Part III, Subpart v, 4.B.5.h
  • RISP and Reservists? Special Separation Pay (RSSP), see M21-1MR, Part III, Subpart v, 4.B.5.i
  • SSB and Voluntary Separation Incentive (VSI), see M21-1MR, Part III, Subpart v, 4.B.5.j-m
  • VSP, see M21-1MR, Part III, Subpart v, 4.B.5.n, and o
  • Voluntary Retirement Incentive (VRI), see M21-1MR, Part III, Subpart v, 4.B.5.p, and
  • disability severance pay, see M21-1MR, Part III, Subpart v, 4.B.7.  (RJ)  2/14/23