No, you should almost certainly **not** take the severance pay**.** Accepting a Department of Defense (DOD) disability severance for a service-connected condition (38 CFR 3.700(a)(3)) requires you to repay that severance from your future Department of Veterans Affairs (VA) compensation, but only until the severance amount is recouped. Critically, the law (10 U.S.C. § 1212) mandates this recoupment comes from the **VA compensation for the *same specific condition* for which the DOD awarded the severance.** Given your proposed 100% VA rating, the VA is likely compensating you for multiple conditions. The DOD’s 20% rating likely aligns with one of these. Therefore, the VA will withhold your *entire monthly compensation for that specific condition* until the severance is repaid, which could take years, while you still receive VA pay for your other conditions. This creates a significant financial disadvantage compared to declining severance and receiving your full, concurrent VA and DOD retirement pay (if eligible). Under *DeLuca v. Brown*, you can argue for a higher DOD rating if your condition is unstable or prevents sedentary employment, potentially increasing your DOD percentage to 30% or higher, which would qualify you for permanent medical retirement with concurrent receipt. Your actionable next step is to **immediately consult with your assigned Military Service Coordinator or a Veterans Service Organization (VSO) to formally contest the DOD’s 20% rating** and seek medical retirement, and to get a detailed explanation of the recoupment calculation specific to your case.
*This information is for educational purposes and is not legal, financial, or medical advice. You should consult with your MSC, a VSO, or an accredited attorney for guidance specific to your case.*
Official 2026 VA monthly compensation, including the 2.8% COLA increase.
Dependent add-ons start at a 30% rating. Child-only and dependent-parent rates: see the full 2026 pay chart.
| Rating | Monthly (2026, incl. 2.8% COLA) |
|---|---|
| 10% | $180.42 |
| 20% | $356.66 |
| 30% | $552.47 |
| 40% | $795.84 |
| 50% | $1,132.90 |
| 60% | $1,435.02 |
| 70% | $1,808.45 |
| 80% | $2,102.15 |
| 90% | $2,362.30 |
| 100% | $3,938.58 |
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