Every year Military Service Members are involuntarily or voluntarily separated from their branch of service. Those who are eligible for separation pay and accept separation pay and then become eligible for VA disability compensation are denied their disability entitlements due to laws outlined in 38 CFR 3.700 and Title 10 U.S.C 1174 based on the premise that having accepted separation pay, which is paid as ONE LUMP SUM, they cannot receive a concurrently running benefit and must have their entitlements withheld until the entirety of the NET AMOUNT of separation pay benefits are recuperated from their disability. The amount withheld should be capped no higher than 40% of the monthly entitlement. This will place much needed funds into the hands of veterans who are still trying to transition



