If I move my FRS money will it be considered income?

I am receiving LTD with The Standard. Some time ago I moved my money ($152,000) from the FRS (Florida Retirement System) into a 401K. I did this to have more control on my investments. I did not put this in my bank account or take distributions from it, just transferred it directly into a 401K. The standard has considered this an overpayment and now have stopped my monthly payments until the "overpayment" is paid to them. After I repay them the $14,000 they will reduce my monthly payments by $822 based on a formula they use. I earned that money over twelve years of employment. First, can they lay claim to the moved money at all? Second, shouldn't the formula they use be based on how much money went into the FRS since I was disabled (2023) and not based on the twelve years I worked before that. I earned that money while I was healthy and they were not involved with me. By their logic I should owe them twelve years of overpayment from my income paid to me by my employer too. It is not fair. It doesn't make sense. To pay them I will have to go into my 401K which will cost me in taxes. And if I do, they will consider that a distribution and claim that as well. I don't know what to do. I am afraid I might lose everything.