Currently, if a service member is forced out of the his/her service, they are typically eligible for a severance payment. However, if they wish to receive VA disability compensation, the entire severance payment must be repaid before receiving a single penny from the VA. The severance payment is given as means of thanking the service member for their service before forcing them out. Since they were likely on a track for retirement before being forced out, the severance is given as a one time payment. Personnel cuts and lack of promotions are typical factors. So by taking this severance back, they are negating the financial assistance provided to the service member for having their time cut short. In essence, if you wish to receive VA pay, you receive no benefit for the time you served.
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