H.R. 303 — Retired Pay Restoration Act

This section states congressional findings on the history and progressive mitigation of the retired pay offset for disabled military retirees (i.e., the requirement to forfeit retired pay dollar-for-dollar upon receipt of VA disability compensation), including full concurrent receipt for those with 100% ratings or combat-related disabilities and a 10-year phaseout for noncombat-related ratings of 50% to 90%. It expresses the sense of Congress that military retired pay should not be reduced due to eligibility for veterans' disability compensation.

This section expands eligibility under the Concurrent Retirement and Disability Pay (CRDP) program for concurrent receipt of military retired pay and Department of Veterans Affairs (VA) disability compensation—without offset under 38 U.S.C. §§5304 and 5305—by eliminating the requirement for a qualifying service-connected disability rated 50% or higher (to any rating) and by defining a qualified retiree as a member or former member entitled to retired pay, except a Chapter 61 disability retiree with less than 20 years of creditable service under 10 U.S.C. §1405 or computed under 10 U.S.C. §12732, who is also entitled to VA disability compensation for any month. (As background, CRDP allows eligible retirees to receive both payments in full; previously, Chapter 61 disability retirees with less than 20 years of service were wholly ineligible.) The section further removes obsolete phase-in provisions (applicable 2004–2013), revises special rules for Chapter 61 career retirees (20 or more years of service) to retain partial offset only for amounts exceeding longevity-based retired pay, and makes clerical and conforming amendments. Amendments apply to payments for months beginning on or after January 1, 2021.