This issue has been discussed on Flightinfo a while back. Search there and you may get some insight. From what I remember, there was talk about attempting to repeal severance payback, but it did not make the legislation. As far as I know everyone that received it, and then retired, will have to pay it back. There is a code in your records that will generate the automatic payback. I'm not sure about 40%. My understanding is that the % is something you select. As low as 10% even. So when you kick the bucket and you still owe something, the debit disappears.