Retired Pay Restoration Act - Allows the receipt of both military retired pay and veterans' disability compensation with respect to any service-connected disability (under current law, only a disability rated at 50% or more). Provides a phase-in for the concurrent receipt of retired pay with respect to retirees with service-connected disabilities rated at 40% or less.
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.