A veteran's salary or his pension benefits are paid to him regardless of his other income. Thus, a structured settlement would have no impact on those payments.

Surviving spouse, parent or children's benefits paid by the VA are impacted by income received by the dependent. Thus a structured settlement payment could impact negatively on those dependent benefits.

Similarly the payment of the cost of hospital treatment, or nursing home care are also impacted by the patient's income. So again reception of structured settlement payments could effect those health related benefits. Special Needs Trusts are sometimes used to assist in this area.

If the veteran is receiving service related disability payments, they are not income impacted. Thus a structured settlement has no effect. But, if the disability is non-service oriented a structured settlement would count against the disability income.