This is something for which you might want to receive the assistance of a veterans service officer (VSO).
Reference [VA]: M21-1, Part III, Subpart v, Chapter 4, Section B - Recoupment of Separation Benefits
https://www.knowva.ebenefits.va.gov...Section-B---Recoupment-of-Separation-Benefits
IF...a Veteran received disability severance pay on or after January 28, 2008, for a disability incurred in a combat zone or during combat-related operations, and VA rated the disability at least 10-percent disabling
THEN
follow the instructions in M21-1, Part III, Subpart v, 4.B.3.e. [which follows]
3.e. Disability Severance Pay for Disabilities Incurred in a Combat Zone or During Combat-Related Operations
PL 110-181, as implemented in 38 CFR 3.700(a)(3), prohibits the recoupment of disability severance pay from VA compensation IF
the Veteran
separated from service on or after January 28, 2008, and
incurred the disability for which he/she received disability severance pay in the line of duty in a combat zone or during the performance of duty in combat-related operations.
Exception: The provisions of this block may apply to a Veteran who separated from service prior to January 28, 2008, if
the Veteran incurred a disability in the line of duty in a combat zone or during the performance of duty in combat-related operations, and DoD subsequently
placed the Veteran on the Temporary Disability Retirement List (TDRL)
later removed the Veteran from TDRL on or after January 28, 2008, and
awarded the Veteran disability severance pay for the same disability.
Important:
Prior to August 5, 2014, the “combat-related operations” requirement was met only if the disability in question was the result of armed conflict. ON AND AFTER THIS DATE, the requirement is met if the disability was combat-related.
DoD – not VA – decides whether a disability was incurred in the line of duty in a combat zone or during combat-related operations.
Reference: For information about determining whether DoD paid disability severance pay that is not subject to recoupment under 38 CFR 3.700(a)(3), see M21-1, Part III, Subpart v, 4.B.3.f.
Ron