It will not affect your severance. However, if you indeed are separated with severance, your VA disability compensation will be affected. You will have to repay the VA the amount you are awarded as compensation from the military. For instance, if you receive $25,000 severance from the military, the VA will recoup $25,000 from your disability payments. This is assuming your conditions are not combat connected. This is how we were briefed at the MEB here, so I apologize if this is incorrect.