10 U.S.C. § 14513 — Failure of selection for promotion: transfer, retirement, or discharge

Each reserve officer of the Army, Navy, Air Force, or Marine Corps who is in an active status and whose removal from active status or from a reserve active-status list is required by section 14504, 14505, or 14506 of this title must — unless the officer's separation is deferred or the officer is continued in an active status under another provision of law — by the date specified in those sections, be: (1) transferred to an inactive status, if the Secretary concerned determines the officer has skills that may be needed to meet the mobilization needs of the officer's armed force; (2) transferred to the Retired Reserve, if the officer is qualified for that transfer and does not request, under regulations the Secretary concerned prescribes, not to be transferred; or (3) if neither of those applies, discharged from the officer's reserve appointment.