Retired Pay Restoration Act of 2005

The Retired Pay Restoration Act of 2005 (S. 558) sought to allow military retirees to receive both their full retirement pay and their Department of Veterans Affairs disability compensation simultaneously. At the time, federal law required a "proportional offset," meaning a retiree's pension was reduced by the amount of disability pay they received unless they had a disability rating of 50% or higher.

If passed, this bill would have eliminated that offset for all veterans with service-connected disabilities, regardless of their disability rating. It also aimed to remove the ten-year phase-in period for concurrent receipt and extend these full benefits to those who were medically retired due to service-connected injuries. For affected veterans, this would have resulted in a significant increase in monthly household income by allowing them to keep the full amount of both earned benefits.