Please refer to 38 U.S.C., 3.700.3 for complete information regarding severance pay offered by the military versus VA compensation. A brief explanation of the difference between severance pay and VA compensation is as follows: Disability severance pay from the military is granted for a disability received or acquired while in the military and is usually paid in a lump sum. VA compensation is not paid in a single lump sum, but is paid out over time. If VA were to pay compensation and severance pay for the same disability, you would be getting paid twice for the same disability. By law, this is not allowed. If you filed for other disabilities that were not related to your disability severance, the VA may pay you for those disabilities. Please visit http://www.vba.va.gov/VBA/ for more information about the requirements for pension benefits and compensations.