406
406 (c) Each officer retired under subsection (a) or (b) — (1) unless otherwise entitled to a higher grade, shall be retired • in the grade in which he was serving at the time of retirement; and (2) is entitled to retired pay at the rate of 21/^ percent of the basic pay to which he would be entitled if serving on active duty in the grade in which retired multiplied by the number of years of service creditable for basic pay, but the retired pay may not be more than 75 percent of the basic pay upon which the computation of retired pay is based. (d) Each officer designated for limited duty on the active list of the Navy serving in the grade of lieutenant and each officer designated for limited duty on the active list of the Marine Corps serving in the grade of captain shall be honorably discharged on June 30 of the fiscal year in which he is considered as having failed of selection for promotion to the grade of lieutenant commander or major for the second time. (e) Each officer designated for limited duty on the active list of the Navy serving in the grade of lieutenant (junior grade) and each officer designated for limited duty on the active list of the Marine Corps serving in the grade of first lieutenant shall be honorably discharged on June 30 of the fiscal year in which lie is considered as having failed of selection for promotion to the grade of lieutenant or captain for the second time. (f) Each officer honorably discharged under subsection (d) or (e) is entitled to a lump-sum payment computed on the basis of two months' basic pay received at the time of discharge multiplied by the number of years of total commissioned service as computed under section 6387 or 6388 of this title, but the payment may not be more than two years' basic pay. The acceptance of a lump-sum payment under this section does not deprive a person of any retirement benefits from the United States. However, there shall be deducted from each of his retirement payments so much thereof as is based on the service for which he has received payment under this section, until the total deductions equal the amount of the lump-sum payment. (g) If any officer subject to retirement or discharge under subsections (b), (d), or (e) had the permanent status of a warrant officer when first appointed as an officer designated for limited duty, he has the option, instead of being retired or discharged, of reverting to the grade and status he would hold if he had not been so appointed. If any such officer had a permanent grade below the grade of warrant officer, W - 1, when first so appointed, he has the option, instead of oeing retired or discharged, of reverting to the grade and status he would hold if he had not been so appointed but had instead been appointed a warrant officer, W - 1. (h) I n any computation to determine the grade and status to which an officer may revert under this section, all active service as an officer designated for limited duty or as a temporary or reserve officer is included. • ' i V BH--'
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