B-84602, SEPTEMBER 14, 1949, 29 COMP. GEN. 124

B-84602, SEPTEMBER 14, 1949, 29 COMP. GEN. 124

PAY - RETAINER; RETIRED - TRANSFERRED FLEET RESERVISTS NAVAL RESERVISTS INITIALLY TRANSFERRED TO THE FLEET RESERVE PURSUANT TO SECTION 204 OF THE NAVAL RESERVE ACT OF 1938, PRIOR TO AUGUST 10, 1946, WHO SUBSEQUENTLY ARE TRANSFERRED TO THE RETIRED LIST OF THE REGULAR NAVY FOR PHYSICAL DISABILITY PRIOR TO THE COMPLETION OF 30 YEARS' NAVAL SERVICE IN ACCORDANCE WITH SECTION 206 OF THE SAID ACT ARE NOT ENTITLED TO INCLUDE PERMANENT ADDITIONS IN THE COMPUTATION OF THEIR RETIRED PAY UNTIL THEY HAVE COMPLETED 30 YEARS' SERVICE. ENLISTED MEN OF THE NAVAL RESERVE WHO, PURSUANT TO THE PROVISIONS OF SECTION 204 OF THE NAVAL RESERVE ACT OF 1938, INITIALLY ARE TRANSFERRED TO THE FLEET RESERVE ON OR AFTER AUGUST 10, 1946--- THE DATE OF THE ACT AMENDING SAID SECTION 204--- AND WHO ELECT TO RECEIVE RETIRED AND RETAINER PAY UNDER LAWS IN EFFECT IMMEDIATELY PRIOR TO AUGUST 10, 1946, MAY NOT INVOKE THE PROVISIONS OF SECTION 204, AS AMENDED, IN THE COMPUTATION OF RETIRED AND RETAINER PAY.

ASSISTANT COMPTROLLER GENERAL YATES TO THE SECRETARY OF THE NAVY, SEPTEMBER 14, 1949:

THERE HAS BEEN CONSIDERED YOUR LETTER OF MARCH 16, 1949, WITH AN ENCLOSURE, REQUESTING DECISION ON TWO SPECIFIC QUESTIONS RELATIVE TO THE RETIRED PAY STATUS OF TRANSFERRED MEMBERS OF THE U.S. NAVAL RESERVE, CLASSES F-5 AND F-6, UPON SUBSEQUENT TRANSFER TO THE RETIRED LIST FOR PHYSICAL DISABILITY PRIOR TO THE COMPLETION OF 30 YEARS' SERVICE. IT IS UNDERSTOOD THAT CLASS F-5 IS COMPRISED OF MEN TRANSFERRED TO THE FLEET RESERVE PRIOR TO AUGUST 10, 1946, UNDER THE PROVISIONS OF SECTION 204 OF THE NAVAL RESERVE ACT OF 1938, AND THAT CLASS F-6 IS COMPRISED OF MEN TRANSFERRED TO THE FLEET RESERVE ON OR AFTER AUGUST 10, 1946, UNDER THE PROVISIONS OF SAID SECTION 204, AS AMENDED BY THE ACT OF THE LATTER DATE.

QUESTION (1) IS AS FOLLOWS:

(1) ARE ENLISTED MEN WHO ARE INITIALLY TRANSFERRED TO THE FLEET RESERVE UNDER SECTION 204 OF THE NAVAL RESERVE ACT OF 1938, APPROVED JUNE 25, 1938 (52 STAT. 1179), AND SUBSEQUENTLY TRANSFERRED IN ACCORDANCE WITH SECTION 206 OF THAT ACT TO THE RETIRED LIST OF THE REGULAR NAVY FOR PHYSICAL DISABILITY PRIOR TO COMPLETION OF THIRTY YEARS' NAVAL SERVICE, ENTITLED TO RETIRED PAY COMPUTED ON PERMANENT ADDITIONS TO THEIR BASE PAY FROM THE DATE OF TRANSFER TO THE RETIRED LIST OR UPON THE COMPLETION OF THIRTY YEARS' SERVICE ONLY? IT IS ASSUMED THAT THE MEN REFERRED TO IN THIS QUESTION HAVE NOT ELECTED TO RECEIVE RETAINER AND RETIRED PAY UNDER THE ACT OF AUGUST 10, 1946.

A BRIEF EXAMINATION OF THE PERTINENT PROVISIONS OF EARLIER RELATED STATUTES SEEMS DESIRABLE INASMUCH AS THE GENERAL PATTERN THEREIN ESTABLISHED IS FOLLOWED BY THE NAVAL RESERVE ACT OF 1938.

THE ACT OF FEBRUARY 28, 1925, EFFECTIVE JULY 1, 1925, 43 STAT. 1080, 1081, REPEALED THE PROVISIONS OF THE ACT OF AUGUST 29, 1916, PERTAINING TO THE FLEET NAVAL RESERVE. SECTION 26 OF THE 1925 ACT, 43 STAT. 1087, CONTINUED THE PROVISIONS OF THE 1916 ACT FOR RETAINER PAY, AND SECTION 27, ID. 1088, CONTINUED THE PROVISIONS FOR RETIRED PAY OF MEN WHO WERE SERVING IN THE NAVY ON JULY 1, 1925, OR WHO THEREAFTER REENLISTED IN THE NAVY UNDER CONDITIONS OF CONTINUOUS SERVICE ANTEDATING JULY 1, 1925. SECTION 27 ALSO PROVIDED THAT MEN TRANSFERRED TO THE FLEET NAVAL RESERVE UNDER SECTION 26, WHO SUBSEQUENTLY WERE FOUND TO BE PHYSICALLY DISQUALIFIED FOR ACTIVE DUTY, SHOULD BE TRANSFERRED TO THE RETIRED LIST OF THE REGULAR NAVY WITH THE PAY THEY WERE THEN RECEIVING AND, UPON THE COMPLETION OF 30 YEARS' SERVICE INCLUDING NAVAL SERVICE, TIME IN THE FLEET NAVAL RESERVE, AND TIME ON THE RETIRED LIST OF THE NAVY, SHOULD RECEIVE THE ALLOWANCES GRANTED TO ENLISTED MEN OF THE REGULAR NAVY UPON RETIREMENT.

SECTION 23 OF THE 1925 ACT, 43 STAT. 1087, PROVIDED FOR TRANSFER TO THE FLEET NAVAL RESERVE ONLY UPON THE COMPLETION OF 20 YEARS' SERVICE, WITH RETAINER PAY OF ONE-HALF OF BASE PAY, AND FURTHER PROVIDED THAT MEN SO TRANSFERRED TO THE FLEET NAVAL RESERVE, AND SUBSEQUENTLY FOUND TO BE PHYSICALLY DISQUALIFIED FOR ACTIVE DUTY, SHOULD BE DISCHARGED. ALSO, THIS SECTION PROVIDED THAT MEN SO TRANSFERRED TO THE FLEET NAVAL RESERVE SHOULD, UPON COMPLETION OF 30 YEARS' SERVICE, INCLUDING NAVAL SERVICE AND TIME IN THE FLEET NAVAL RESERVE, BE TRANSFERRED TO THE RETIRED LIST OF THE REGULAR NAVY WITH ONE-HALF THE BASE PAY OF THEIR RATINGS, PLUS ALL PERMANENT ADDITIONS THERETO, PLUS THE ALLOWANCES TO WHICH ENLISTED MEN OF THE NAVY WERE ENTITLED UPON RETIREMENT. IT WILL BE NOTED THAT NOT UNTIL TRANSFER TO THE RETIRED LIST AFTER 30 YEARS' SERVICE DID TRANSFERRED MEMBERS UNDER SECTION 23 OF THE 1925 ACT BECOME ENTITLED TO PERMANENT ADDITIONS.

THE ACT OF FEBRUARY 28, 1925, WAS REPEALED BY THE NAVAL RESERVE ACT OF 1938. SECTION 1 OF THE LATTER ACT, 52 STAT. 1175, PROVIDES, IN PERTINENT PART:

* * * THAT ALL MEN WHO ON THE DATE OF THIS ACT ARE MEMBERS OF THE FLEET NAVAL RESERVE AS THE RESULT OF SIXTEEN OR MORE YEARS OF ACTIVE NAVAL SERVICE, ARE HEREBY TRANSFERRED TO THE FLEET RESERVE CREATED BY THIS ACT, AND SHALL CONTINUE TO RECEIVE THE SAME PAY, ALLOWANCES, AND BENEFITS WHICH THEY WERE LEGALLY ENTITLED TO RECEIVE AT THE TIME OF APPROVAL OF THIS ACT

SECTION 203 OF THE ABOVE ACT, ID. 1178, PROVIDES, IN PERTINENT PART:

MEN SERVING IN THE REGULAR NAVY, WHO, HAVING ENLISTED THEREIN ON JULY 1, 1925, OR PRIOR THERETO, OR WHO HAVING BEEN DISCHARGED THEREFROM PRIOR TO JULY 1, 1925, AND REENLISTED IN THE REGULAR NAVY WITHIN THREE MONTHS FROM THE DATE OF DISCHARGE, OR WHO WERE SERVING IN THE NAVAL RESERVE FORCE ON JULY 1, 1925, IN AN ENROLLMENT ENTERED INTO WITHIN FOUR MONTHS FROM THE DATE OF THEIR DISCHARGE FROM THE REGULAR NAVY AND THEREAFTER REENLISTED IN THE REGULAR NAVY WITHIN THREE MONTHS FROM THE DATE OF THEIR DISCHARGE FROM THE NAVAL RESERVE CREATED BY THE ACT OF FEBRUARY 28, 1925, SHALL BE ENTITLED TO BE TRANSFERRED TO THE FLEET RESERVE ON THE COMPLETION OF SIXTEEN OR MORE YEARS' NAVAL SERVICE, AND WHEN SO TRANSFERRED SHALL, EXCEPT WHEN ON ACTIVE DUTY, BE ENTITLED TO RECEIVE, IF THEY HAVE HAD SIXTEEN BUT LESS THAN TWENTY YEARS' NAVAL SERVICE, PAY AT THE RATE OF ONE- THIRD THE BASE PAY THEY WERE RECEIVING AT THE TIME OF TRANSFER, PLUS ALL PERMANENT ADDITIONS THERETO, AND IF THEY HAVE HAD TWENTY OR MORE YEARS' NAVAL SERVICE, PAY AT THE RATE OF ONE-HALF OF THE BASE PAY THEY WERE RECEIVING AT THE TIME OF TRANSFER, PLUS ALL PERMANENT ADDITIONS THERETO *

SECTION 204 OF THE SAID ACT, 52 STAT. 1179, ORIGINALLY PROVIDED:

MEN SERVING IN THE REGULAR NAVY ON THE DATE OF THE PASSAGE OF THIS ACT, WHO FIRST ENLISTED IN THE NAVY AFTER JULY 1, 1925, OR WHO REENLISTED THEREIN AFTER JULY 1, 1925, HAVING BEEN OUT OF THE REGULAR NAVY FOR MORE THAN THREE MONTHS, AND MEN WHO FIRST ENLIST IN THE REGULAR NAVY FOR MORE THAN THREE MONTHS, AND MEN WHO FIRST ENLIST IN THE REGULAR NAVY AFTER THE PASSAGE OF THIS ACT, MAY UPON THEIR OWN REQUEST BE TRANSFERRED TO THE FLEET RESERVE UPON THE COMPLETION OF AT LEAST TWENTY YEARS' NAVAL SERVICE: PROVIDED, THAT THEY ARE PHYSICALLY AND OTHERWISE QUALIFIED TO PERFORM DUTY IN TIME OF WAR. AFTER SUCH TRANSFER, EXCEPT WHEN ON ACTIVE DUTY, THEY SHALL BE PAID AT THE RATE OF ONE-HALF OF THE BASE PAY THEY ARE RECEIVING AT THE TIME OF TRANSFER: PROVIDED FURTHER, THAT ALL ENLISTED MEN TRANSFERRED TO THE FLEET RESERVE IN ACCORDANCE WITH THE PROVISIONS OF SECTIONS 1 AND 203 OF THIS ACT SHALL, UPON COMPLETION OF THIRTY YEARS' SERVICE, BE TRANSFERRED TO THE RETIRED LIST OF THE REGULAR NAVY, WITH THE PAY THEY WERE THEN LEGALLY ENTITLED TO RECEIVE AND THE ALLOWANCES TO WHICH ENLISTED MEN OF THE REGULAR NAVY ARE ENTITLED ON RETIREMENT AFTER THIRTY YEARS' SERVICE: AND PROVIDED FURTHER, THAT ALL ENLISTED MEN TRANSFERRED TO THE FLEET RESERVE IN ACCORDANCE WITH THE PROVISIONS OF THE SECTION SHALL, UPON COMPLETION OF THIRTY YEARS' SERVICE, BE TRANSFERRED TO THE RETIRED LIST OF THE REGULAR NAVY, WITH THE PAY THEY WERE THEN LEGALLY ENTITLED TO RECEIVE, PLUS ALL PERMANENT ADDITIONS THERETO, AND THE ALLOWANCES TO WHICH ENLISTED MEN OF THE REGULAR NAVY ARE ENTITLED ON RETIREMENT AFTER THIRTY YEARS' SERVICE.

SECTION 206 OF THE ABOVE ACT, 52 STAT. 1179, PROVIDES, IN PERTINENT PART, AS FOLLOWS:

IN TIME OF PEACE ALL ENLISTED MEN TRANSFERRED TO THE FLEET RESERVE AFTER SIXTEEN YEARS' OR MORE SERVICE IN THE REGULAR NAVY MAY BE REQUIRED TO PERFORM NOT MORE THAN TWO MONTHS' ACTIVE DUTY IN EACH FOUR YEAR PERIOD AND SHALL BE EXAMINED PHYSICALLY AT LEAST ONCE DURING EACH FOUR-YEAR ERIOD: PROVIDED, THAT ANY PAY WHICH MAY BE DUE ANY MEMBER OF THE FLEET RESERVE SHALL BE FORFEITED WHEN SO ORDERED BY THE SECRETARY OF THE NAVY, OF SUCH MEMBER TO REPORT FOR INSPECTION: PROVIDED FURTHER, THAT ENLISTED MEN HERETOFORE OR HEREAFTER TRANSFERRED TO THE FLEET RESERVE AFTER SIXTEEN YEARS' OR MORE SERVICE IN THE REGULAR NAVY, WHO ARE FOUND NOT PHYSICALLY QUALIFIED UPON SUCH EXAMINATION, SHALL BE TRANSFERRED TO THE RETIRED LIST OF THE REGULAR NAVY, WITH THE PAY THEY ARE THEN RECEIVING, AND IN ADDITION MEN COMING UNDER THE COGNIZANCE OF SECTIONS 1 AND 203 OF THIS ACT, SHALL, UPON THE COMPLETION OF THIRTY YEARS' SERVICE, RECEIVE THE ALLOWANCES TO WHICH ENLISTED MEN OF THE REGULAR NAVY ARE ENTITLED ON RETIREMENT AFTER THIRTY YEARS' SERVICE: PROVIDED FURTHER, THAT ALL MEN COMING UNDER THE COGNIZANCE OF SECTION 204 OF THIS TITLE SHALL RECEIVE ALL PERMANENT ADDITIONS TO THEIR BASE PAY, AND THE ALLOWANCES TO WHICH ENLISTED MEN OF THE REGULAR NAVY ARE ENTITLED ON RETIREMENT AFTER THIRTY YEARS' SERVICE *

SECTION 204 PROVIDES SPECIFICALLY THAT MEN TRANSFERRED AFTER 20 YEARS' NAVAL SERVICE SHALL BE ENTITLED TO ONE-HALF OF THEIR BASE PAY, AND THE LANGUAGE CONTAINED IN THE THIRD PROVISO OF SECTION 206, QUOTED ABOVE, MAY NOT REASONABLY BE VIEWED AS INCLUDING PERMANENT ADDITIONS TO THEIR RETAINER PAY PRIOR TO THE COMPLETION OF 30 YEARS' SERVICE. THIS VIEW IS SUPPORTED BY THE PRECEDING PROVISO OF SECTION 206, WHICH PERMITS TRANSFER TO THE RETIRED LIST OF PHYSICALLY DISABLED MEMBERS "WITH THE PAY THEY WERE THEN RECEIVING" UNTIL THE COMPLETION OF 30 YEARS' SERVICE.

INASMUCH AS ALL WORDS OF THE SECTION MUST BE GIVEN EFFECT, IF POSSIBLE, AND SINCE UNDER THE SECOND PROVISO OF SECTION 206 PHYSICALLY DISQUALIFIED MEMBERS--- WHICH INCLUDE MEN TRANSFERRED UNDER SECTION 204 -- ARE REQUIRED TO BE TRANSFERRED TO THE RETIRED LIST WITH THE PAY THEY ARE THEN RECEIVING, THE ONLY APPARENT METHOD OF GIVING EFFECT TO THIS LANGUAGE IN CONSONANCE WITH THE GENERAL DESIGN OF THE STATUTE IS TO REQUIRE THE COMPLETION OF A TOTAL OF 30 YEARS BEFORE PERMANENT ADDITIONS TO THEIR RETAINER PAY BECOME PAYABLE UNDER THE THIRD PROVISO. WHILE THE THIRD PROVISO DOES NOT EXPRESSLY SPECIFY WHEN THE ADDITIONAL PAY SHALL BECOME PAYABLE, SUCH PROVISO IS IN EFFECT A CONTINUATION OF THE LANGUAGE OF THE SECOND PROVISO WHICH EXPRESSLY REQUIRES THE COMPLETION OF 30 YEARS' SERVICE, THE SAME CONDITION BEING UNDERSTOOD IN THE THIRD PROVISO. THE STATUTE HAS NEVER BEEN UNDERSTOOD OR ADMINISTERED OTHERWISE. TO HOLD OTHERWISE AT THIS LATE DATE WOULD REQUIRE THE STRONGEST EVIDENCE OF LEGISLATIVE INTENT TO CREATE THE ANOMALOUS SITUATION OF CONFERRING ADDITIONAL MONETARY BENEFITS ON SECTION 204 MEN IMMEDIATELY UPON TRANSFER TO THE RETIRED LIST WHILE REQUIRING ALL OTHER RETIRED FLEET RESERVISTS TO COMPLETE THEIR FULL 30 YEARS' SERVICE BEFORE RECEIVING INCREASED BENEFITS. THE FAILURE EXPRESSLY TO REPEAT "AFTER THIRTY YEARS' SERVICE" IN THE THIRD PROVISO IS NOT SUFFICIENT EVIDENCE OF SUCH AN INTENT.

ACCORDINGLY, QUESTION (1) IS ANSWERED BY SAYING THAT THE MEN THEREIN REFERRED TO ARE NOT ENTITLED TO INCLUDE PERMANENT ADDITIONS IN THE COMPUTATION OF THEIR RETIRED PAY UNTIL THEY HAVE COMPLETED 30 YEARS' SERVICE.

QUESTION (2) IS AS FOLLOWS:

(2) IS THE RETIRED PAY STATUS OF ENLISTED MEN INITIALLY TRANSFERRED TO THE FLEET RESERVE ON OR AFTER AUGUST 10, 1946, UNDER SECTION 204, SUPRA, AS AMENDED BY THE ACT OF AUGUST 10, 1946 (60 STAT. 993), AND WHO ELECT TO RECEIVE RETIRED PAY AND RETAINER PAY UNDER LAWS IN EFFECT IMMEDIATELY PRIOR TO AUGUST 10, 1946, GOVERNED BY THE ANSWER TO THE PREVIOUS QUESTION?

SECTION 2 OF THE ACT OF AUGUST 10, 1946, 60 STAT. 993, PROVIDES:

SECTION 204 OF THE NAVAL RESERVE ACT OF 1938 (52 STAT. 1179) IS HEREBY AMENDED TO READ AS FOLLOWS:

"SEC. 204. MEMBERS OF THE NAVY WHO FIRST ENLISTED IN THE NAVY AFTER JULY 1, 1925, OR WHO REENLISTED THEREIN AFTER JULY 1, 1925, HAVING BEEN OUT OF THE REGULAR NAVY FOR MORE THAN THREE MONTHS, MAY UPON THEIR OWN REQUEST BE TRANSFERRED TO THE FLEET RESERVE UPON THE COMPLETION OF AT LEAST TWENTY YEARS' ACTIVE FEDERAL SERVICE. AFTER SUCH TRANSFER, EXCEPT WHEN ON ACTIVE DUTY, THEY SHALL BE PAID AT THE ANNUAL RATE OF 2 1/2 PERCENTUM OF THE ANNUAL BASE AND LONGEVITY PAY THEY ARE RECEIVING AT THE TIME OF TRANSFER MULTIPLIED BY THE NUMBER OF YEARS OF ACTIVE FEDERAL SERVICE: PROVIDED, THAT THE PAY AUTHORIZED IN THIS SECTION SHALL BE INCREASED 10 PERCENTUM FOR ALL MEN WHO MAY BE CREDITED WITH EXTRAORDINARY HEROISM IN THE LINE OF DUTY: PROVIDED FURTHER, THAT THE DETERMINATION OF THE SECRETARY OF THE NAVY AS TO THE DEFINITION OF EXTRAORDINARY HEROISM SHALL BE FINAL AND CONCLUSIVE FOR ALL PURPOSES: PROVIDED FURTHER, THAT THE PAY AUTHORIZED IN THIS SECTION SHALL NOT EXCEED 75 PERCENTUM OF THE ACTIVE-DUTY BASE AND LONGEVITY PAY THEY WERE RECEIVING AT THE TIME OF TRANSFER: PROVIDED FURTHER, THAT ALL ENLISTED MEN TRANSFERRED TO THE FLEET RESERVE IN ACCORDANCE WITH THE PROVISIONS OF THIS SECTION AND OF SECTIONS 1 AND 203 OF THIS ACT SHALL, UPON COMPLETION OF THIRTY YEARS' SERVICE, BE TRANSFERRED TO THE RETIRED LIST OF THE REGULAR NAVY, WITH THE PAY THEY WERE THEN LEGALLY ENTITLED TO RECEIVE: PROVIDED FURTHER, THAT NOTHING CONTAINED WITHIN THIS SECTION SHALL BE CONSTRUED TO PREVENT PERSONS WHO QUALIFY FOR TRANSFER TO THE FLEET RESERVE UNDER THE PROVISIONS OF SECTION 203 OF THIS ACT FROM BEING TRANSFERRED IN ACCORDANCE WITH THE PROVISIONS OF THIS SECTION IF THEY SO ELECT: PROVIDED FURTHER, THAT A FRACTIONAL YEAR OF SIX MONTHS OR MORE SHALL BE CONSIDERED A FULL YEAR FOR PURPOSES OF THIS SECTION AND SECTION 203 IN COMPUTING YEARS OF ACTIVE FEDERAL SERVICE AND BASE AND LONGEVITY PAY: AND PROVIDED FURTHER, THAT THE PROVISIONS OF THIS SECTION SHALL APPLY TO ALL PERSONS OF THE CLASS DESCRIBED HEREIN HERETOFORE OR HEREAFTER TRANSFERRED TO THE FLEET RESERVE, EXCEPT THAT NO INCREASE IN PAY OR ALLOWANCES SHALL BE DEEMED TO HAVE ACCRUED PRIOR TO THE DATE OF THE ENACTMENT OF THIS AMENDMENT. FOR THE PURPOSES OF THIS SECTION, ALL ACTIVE SERVICE IN THE ARMY OF THE UNITED STATES, THE NAVY, THE MARINE CORPS, THE COAST GUARD, OR ANY COMPONENT THEREOF, SHALL BE DEEMED TO BE ACTIVE FEDERAL SERVICE.' SECTION 9 OF THE ABOVE ACT, 60 STAT. 997, PROVIDES:

NO BACK PAY FOR ANY PERIOD PRIOR TO THE DATE OF ENACTMENT OF THIS ACT SHALL ACCRUE TO ANY PERSON BY REASON OF THE ENACTMENT OF THIS ACT EXCEPT AS OTHERWISE PROVIDED IN SECTION 3. NO PERSON, ACTIVE OR RETIRED, OF ANY OF THE ARMED FORCES, SHALL SUFFER, BY REASON OF THIS ACT, ANY REDUCTION IN ANY PAY, ALLOWANCES, OR COMPENSATION TO WHICH HE WAS ENTITLED UPON THE EFFECTIVE DATE OF THIS ACT. RETIRED ENLISTED PERSONNEL OF THE NAVY AND MARINE CORPS, PERSONNEL OF THE NAVY AND MARINE CORPS WHO ARE MEMBERS OF THE FLEET RESERVE OR FLEET MARINE CORPS RESERVE, AND PERSONNEL OF THE NAVY AND MARINE CORPS WHO BECOME ELIGIBLE AND WHO APPLY FOR TRANSFER TO THE FLEET RESERVE OR FLEET MARINE CORPS RESERVE SHALL RECEIVE AN OPPORTUNITY TO ELECT TO RECEIVE RETAINER AND RETIRED PAY UNDER THE PROVISIONS OF THIS ACT OR TO RECEIVE SUCH PAY UNDER THE PROVISIONS OF LAW IN EFFECT IMMEDIATELY PRIOR TO THE DATE OF THE ENACTMENT OF THIS ACT, AND THESE PERSONS SHALL BE ENTITLED TO RECEIVE THE PAY ELECTED.

IF A MAN ELECTS TO RECEIVE RETAINER AND RETIRED PAY UNDER THE LAWS IN EFFECT PRIOR TO AUGUST 10, 1946, HE NECESSARILY IS RESTRICTED TO THE PAY PROVIDED BY SUCH PRIOR STATUTES AND MAY NOT INVOKE THE PROVISIONS CONTAINED IN THE ACT OF THAT DATE IN THE COMPUTATION OF SUCH PAY.