10 U.S.C. § 8372 — Regular Navy and Regular Marine Corps; officers designated for limited duty: retirement for length of service or failures of selection for promotion; discharge for failures of selection for promotion; reversion to prior status; retired grade; retired pay

(a) Mandatory Retirement. (1) Except as subsection (k) allows, a regular Navy officer designated for limited duty serving below the grade of commander, and a regular Marine Corps officer designated for limited duty, must retire at the end of the month following the month in which they complete 30 years of active naval service, not counting reserve training duty. (2) Except as subsection (k) allows, a regular Navy limited-duty officer serving as commander, who has twice failed selection for promotion to captain and is not on a promotion list for captain, must: (A) if eligible to retire as a commissioned officer under any law, retire on the date requested by the officer and approved by the Secretary of the Navy — no later than the first day of the seventh month after the Secretary releases that second board's results; or (B) if not yet eligible, retire on the date requested and approved after becoming eligible — no later than the first day of the seventh month after becoming eligible. (3) Except as subsection (k) allows, if not retired earlier, a Navy limited-duty commander not on a captain promotion list must retire at the end of the month following the month in which they complete 35 years of active naval service. (4) Except as subsection (k) allows, a Navy limited-duty officer serving as captain must, if not retired sooner, retire at the end of the month following the month in which they complete 38 years of active naval service. (b) Lieutenant Commanders and Majors Who Twice Fail of Selection for Promotion. Except as subsections (f) and (k) allow, a Navy limited-duty officer serving as lieutenant commander, or a Marine Corps limited-duty officer serving as major, who has twice failed selection for promotion to commander or lieutenant colonel and is not on a promotion list, must be retired, if eligible, or discharged, on the date requested by the officer and approved by the Secretary of the Navy — no later than the first day of the seventh month after the Secretary releases that second board's results. (c) Retired Grade and Retired Pay. An officer retired under subsection (a) or (b): (1) is retired in the grade set under section 1370 of this title, unless entitled to a higher grade; and (2) is entitled to retired pay computed under section 8333 of this title. (d) Navy Lieutenants and Marine Corps Captains Who Twice Fail of Selection for Promotion. Except as subsections (f) and (k) allow, a Navy limited-duty officer serving as lieutenant, or a Marine Corps limited-duty officer serving as captain, who has twice failed selection for promotion to lieutenant commander or major and is not on a promotion list, must be honorably discharged on the date requested by the officer and approved by the Secretary of the Navy — no later than the first day of the seventh month after that second board's results are released. (e) Officers in Pay Grades O–2 and O–1 Who Twice Fail of Selection or Are Found Not Qualified. (1) A Navy limited-duty officer serving as lieutenant (junior grade), or a Marine Corps limited-duty officer serving as first lieutenant, who has twice failed selection for promotion to lieutenant or captain, must be honorably discharged on the requested and approved date — no later than the first day of the seventh month after that second board's results are released. (2) A Navy limited-duty officer serving as ensign, or a Marine Corps limited-duty officer serving as second lieutenant, who is found not qualified for promotion, must be honorably discharged on the requested and approved date — no later than the first day of the seventh month after being found not qualified. (f) 18-Year Retirement Sanctuary. If an officer facing discharge under subsection (b), (d), or (e) is not eligible to retire under any law as of the discharge date, but is within two years of qualifying to retire under section 8323, the officer is kept on active duty as a limited-duty officer until qualifying, and is then retired under that section — unless retired or discharged sooner under another law, or the officer reverts to a warrant officer grade under subsection (h). (g) Reenlistment for LDOs Appointed From Enlisted Grades. (1) An officer facing discharge under subsection (b), (d), or (e), who fits the description in paragraph (2), may — at the officer's request and at the Secretary of the Navy's discretion — be enlisted in a grade the Secretary sets, upon that discharge. (2) That description covers an officer who (A) is not eligible to retire under any law; (B) is not covered by subsection (f); and (C) held an enlisted grade before first being appointed a limited-duty officer. (h) Reversion to Warrant Officer Grade for LDOs Appointed From Warrant Officer Grades. An officer facing discharge under subsection (b), (d), or (e) — including one otherwise kept on active duty under subsection (f) — who is not eligible to retire under any law, and who held permanent warrant officer status before first being appointed a limited-duty officer, may choose to revert to the warrant officer grade and status the officer would hold if never appointed a limited-duty officer. (i) Determination of Grade and Status of Officers Reverting to Prior Status. When figuring the grade and status an officer reverts to under this section, all active service as a limited-duty, temporary, or reserve officer is counted. (j) Separation Pay for Officers Discharged. An officer discharged under this section is entitled, if otherwise eligible, to separation pay under section 1174(a)(1) of this title. (k) Selective Retention Boards for LDOs. Under regulations the Secretary of the Navy may prescribe, whenever the needs of the service require it, the Secretary may delay a limited-duty officer's retirement under subsection (a) or (b), or discharge under subsection (b) or (d), if a board of officers convened under section 611(b) recommends it and the officer consents. An officer whose retirement is delayed this way, and who is not later promoted, may not stay on active duty past: 20 years of active commissioned service, in the grade of lieutenant or captain; 24 years, in the grade of lieutenant commander or major; 28 years, in the grade of lieutenant colonel; or age 62 — whichever comes first. (l) Applicability of Section Only to Permanent LDOs. This section does not apply to officers designated for limited duty under section 8146 of this title.