(a) (1) For each week that the Secretary finds an individual who otherwise is eligible for benefits receives or is eligible to receive dismissal payment or wages in lieu of notice, regardless of whether the payment is required by law:
(i) if the payment at least equals the individual’s weekly benefit amount, the individual is disqualified from receiving benefits; or
(ii) if the payment is less than the individual’s weekly benefit amount, the individual may receive benefits reduced by the amount of the payment.
(2) Dismissal payment or wages in lieu of notice shall be allocated to a number of weeks following separation from employment that equals the number of weeks of wages received.
(b) An individual who is otherwise eligible for benefits, including benefits payable under the Unemployment Compensation for Ex–Service Members Program in accordance with 5 U.S.C. § 8521 may receive benefits, and the benefits may not be reduced under subsection (a)(2) of this section, for each week that the Secretary finds that the individual receives or is eligible to receive military disability severance payments.