To amend title 10, United States Code, to permit certain retired members of the uniformed services who have a service-connected disability to receive both disability compensation from the Department of Veterans Affairs for their disability and either retired pay by reason of their years of military service or Combat-Related Special Compensation.

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...