10 U.S.C. § 637 — Selection of regular officers for continuation on active duty

(a) (1) An officer who must be discharged or retired under section 632 may stay on active duty if a selection board called under section 611(b) selects the officer for continuation, and if the needs of the service allow it. (2) An officer who holds the regular rank of captain in the Army, Air Force, Marine Corps, or Space Force, or lieutenant in the Navy, and who is subject to discharge or retirement under section 632, may not stay on active duty under this subsection past the last day of the month in which the officer completes 20 years of active commissioned service. The exception is that the officer may stay longer if promoted to the regular rank of major or lieutenant commander, as applicable. (3) An officer who holds the regular rank of major or lieutenant commander and who is subject to discharge or retirement under section 632 may not stay on active duty under this subsection past the last day of the month in which the officer completes 24 years of active commissioned service. The exception is that the officer may stay longer if promoted to the regular rank of lieutenant colonel or commander, as applicable. (4) If an officer selected to stay on active duty under this subsection declines to do so, the officer must be discharged, retired, or kept on active duty, as appropriate, under section 632. (5) An officer who stays on active duty under this subsection must be discharged when the continued-service period ends if all of these conditions apply: the officer is not later promoted, is not later continued on active duty, and is not on a list recommending continuation or promotion to the next higher regular rank. This rule does not apply if the officer is retired or discharged sooner under another law. (A) The officer must be discharged when the continued-service period expires. (B) If the officer is eligible to retire under any law, the officer must instead be retired under that law on the first day of the first month after the month in which the continued-service period ends. Despite clause (A), an officer who otherwise would be discharged under that clause must be kept on active duty if the officer is within two years of qualifying for retirement under section 7311, 8323, or 9311. The officer must be kept on active duty until qualified for retirement under that section, and then retired, unless retired or discharged sooner under another law. (6) A retirement or discharge under this subsection counts as an involuntary retirement or discharge for purposes of any other law. (b) (1) An officer who must retire under section 633 or 634 may have retirement deferred and may stay on active duty if the needs of the service allow it and a selection board called under section 611(b) selects the officer for continuation. (2) An officer who must retire under section 635 or 636 and is serving as a brigadier general, rear admiral (lower half), major general, or rear admiral may have retirement deferred and stay on active duty if the Secretary concerned authorizes it, subject to the needs of the service. An officer subject to retirement under section 635 or 636 who is serving above the rank of major general or rear admiral may have retirement deferred and stay on active duty if the President authorizes it. (3) A deferral of retirement and continuation on active duty under this subsection may last no more than five years, except as provided in section 1251 or 1253. (c) If a selection board called under section 611(b) takes the action that results in an officer staying on active duty under this section, the Secretary of the military department concerned must approve that continuation. Under section 638a, the Secretary concerned may shorten the period for which any officer stays on active duty under this section. (d) For this section, a continuation period ends or is completed on whichever date comes first: (1) the date originally set for ending the period; or (2) the date set after the period is shortened under section 638a. (e) The Secretary of Defense must issue regulations to administer this section.