Retired Pay Restoration Act - Allows the receipt of both military retired pay and veterans' disability compensation with respect to any service-connected disability (currently, only a disability rated at 50 percent or more).
Makes the 2004 through 2013 phase-in limitations for the concurrent receipt of such pay for qualified retirees with service-connected disabilities rated as total applicable: (1) only during 2004 for retirees with a 100 percent disability; and (2) only during 2004 through 2007 for retirees with a total disability by reason of unemployability.
Makes eligible for the full concurrent receipt of both veterans' disability compensation and either military retired pay or combat-related special pay those individuals who were retired or separated from military service due to a service-connected disability.