not sure I understand your explanation. Are you saying that if I lose a leg and get disability pay from the govt because I am 100% disabled that the VA gets to take that money?
Let me try again as I am having trouble even asking the question correctly. I get a disability payment from the VA for losing my leg. On top of that the Feds pay me disability until my death. So are you saying that the VA grabs this money back they paid me in a lump sum disability until my federal disability payments equal what my disability payment from the VA was? And, after they take my 40k from my federal payments the VA stops taking my money from my federal disability? Did I even ask the question correctly?
Essentially correct. The military and VA are both part of the same government so there is a longstanding principal that the government does not pay for the same thing twice (at least not supposed to). When the $40,000 is recouped, the full VA disability payment is resumed. By the way, when the military service pays the serviceman disability severance pay, they notify him that it is subject to recoupment should he apply for and be granted VA disability payments for the same condition.
This law has been in force for many years and as both a tax payer and a veteran, I can’t find anything unfair or underhanded about it.