Retirement in lieu of Separation

September 19, 2025

This article addresses a retirement in lieu of separation in the Army for Enlisted Soldiers. For Army Officers, visit the Retirement in Lieu of Elimination Page, available at this link.

A retirement in lieu of separation in the Army is a relatively new addition to AR 635-200 and one that many Soldiers, and even JAGs, do not know about. Essentially, any Soldier who has over 20 years of active federal service, and has separation initiated under AR 635-200, Chapter 14-12c or Chapter 15, is eligible to to request to retire in lieu of separation. This is in accordance with AR 635-200, paragraph 2-12b. This request does not have to be approved, unlike an Officer's request to retire in lieu of elimination.

When a Soldier requests to retire in lieu of separation in Army, he she is subject to a reduction in retirement grade at the discretion of the Secretary of the Army, in accordance with AR 635-200, paragraph 1-14. This rank reduction can be either voluntary or involuntary. Basically, a Soldier in this situation can voluntarily request to be reduced in retirement grade. While it is hard to understand why any Soldier would do this, an argument can be made that it would make it more likely that the retirement request would be approved.

Furthermore, a reduction in retirement rank can be involuntary, with the decision being made by the Secretary of the Army (or his/her designee). Before this occurs, and after submitting a retirement in lieu of separation request, the Soldier will be given the chance to submit a rebuttal. Basically, the following sequence of events occurs:

A Soldier submits a retirement in lieu of separation request;
The Secretary of the Army (or his/her designee) decides a retirement grade reduction is warranted OR, if a voluntary reduction is requested, that a lower grade than the one requested is warranted;
The Soldier is informed of the proposed action and is given the chance to submit additional matters/a rebuttal

A Soldier in this situation will be given notice detailing what specific conduct the proposed reduction is based on and what reduced grade is being considered. A Soldier will have at least 10 business days to respond. A good response should address the conduct head on, provide additional evidence for consideration, and highlight the accused's good service in his/her current rank and grade.

For numerous reasons, Enlisted Soldiers having to submit a retirement in lieu of separation request in the Army is very rare. While TDS is available to assist, they are often overworked and inexperienced. Civilian Counsel can, and should, be consulted, considering the rare nature of these types of actions and the consequences of a retirement grade reduction. Hiring a Civilian Counsel allows a Soldier to be represented by an experienced and effective Military Lawyer.

This Article was written by Attorney Matthew Barry. Attorney Barry is highly rated by former clients and has a proven track record of success. He has dealt extensively with all types of Army separation actions and has achieved countless positive results for his clients.

The Law Office of Matthew Barry represents Servicemembers worldwide. He has offices on the East Coast, West Coast, and in the Central U.S.