(a) A Reserve enlisted member of the Army described in subsection (b) who is retired under section 7314 of this title shall be retired in the highest enlisted grade in which the member served on active duty satisfactorily (or, in the case of a member of the National Guard, in which the member served on full-time National Guard duty satisfactorily), as determined by the Secretary of the Army.
(b) This section applies to a Reserve enlisted member who—
(1) at the time of retirement is serving on active duty (or, in the case of a member of the National Guard, on full-time National Guard duty) in a grade lower than the highest enlisted grade held by the member while on active duty (or full-time National Guard duty); and
(2) was previously administratively reduced in grade not as a result of the member's own misconduct, as determined by the Secretary of the Army.
(c) This section applies with respect to Reserve enlisted members who are retired under section 7314 of this title after September 30, 1996.
Prior Provisions
A prior section 7343, act Aug. 10, 1956, ch. 1041, 70A Stat. 454, related to manufacture of naval aircraft at plants owned by United States under certain circumstances, prior to repeal by Pub. L. 103–160, div. A, title VIII, §824(a)(9), Nov. 30, 1993, 107 Stat. 1708.
Amendments
2018—Pub. L. 115–232, §808(b)(13), renumbered section 3963 of this title as this section.
Subsecs. (a), (c). Pub. L. 115–232, §809(a), substituted "section 7314" for "section 3914".
Effective Date of 2018 Amendment
Amendment by Pub. L. 115–232 effective Feb. 1, 2019, with provision for the coordination of amendments and special rule for certain redesignations, see section 800 of Pub. L. 115–232, set out as a note preceding section 3001 of this title.