§1370a Officers Entitled to Retired Pay for Non-regular Service

Summary

People who retire with non-regular service must be credited with the highest permanent rank they held satisfactorily, unless another law says otherwise. The military department decides if service in a rank was satisfactory. For ranks below O–5, a retiree must have at least six months of satisfactory service in that rank. For ranks above O–4, the usual rule is three years of satisfactory service, but there are many exceptions. If someone served at least six months, they can get credit in that rank if they were forced to leave active status because of age rules or a service-connected disability, or if they were involuntarily moved from active status (not for cause), or certain adjutant general situations, or if they were recommended for promotion or approved for federal recognition and served in a position for that higher grade under the rules. The Secretary of Defense can cut the three-year rule to no less than two years for many officers, and the Secretary of a military department can do so for lower ranks when allowed, but no more than 2 percent of an active-status reserve force in a grade can get that cut in any fiscal year. For officers at O–9 and O–10, the Secretary of Defense must personally certify in writing to the President and the House and Senate Armed Services Committees that the officer served satisfactorily. That certification must arrive at least 60 days before retirement and include an up-to-date biography and whether any adverse or reportable information was considered. If an officer is under investigation or facing adverse personnel action when they retire, their retirement grade can be made conditional until the matter is resolved, and the final grade is set after resolution. A retired rank decision is final on the day of retirement unless it is reopened under the narrow rules that allow reopening. Highest permanent grade means a rank up to major general (or rear admiral in the Navy).