§286. Discharge in lieu of retirement; severance pay

(a) Each officer who is retained on active duty under section 283(a)(4), 283(b), or 285 of this title may, if he so requests, with the approval of the Secretary, be honorably discharged at any time prior to the date otherwise specified for his retirement or discharge.

(b) Each officer discharged under this section or under section 282, 283, or 284 of this title is entitled to a lump-sum payment computed by multiplying his years of active commissioned service, but not more than twelve, by two months' basic pay of the grade in which he is serving on the date of his discharge. In determining the total number of years of active service to be used as a multiplier in computing this payment, a part of a year that is six months or more is counted as a whole year and a part of a year that is less than six months is disregarded. The acceptance of a lump-sum payment under this section does not deprive a person of any retirement benefits from the United States. However, there shall be deducted from each of his retirement payments so much thereof as is based on the service for which he has received payment under this section until the total amount deducted equals the amount of the lump-sum payment.

(Added Pub. L. 88–130, §1(10)(C), Sept. 24, 1963, 77 Stat. 185 .)

Interim Authority for Selection of Commanders and Captains for Continuation on Active Duty

Section 3(p) of Pub. L. 88–130 authorized officers who failed of selection for continuation to request their discharge with severance pay computed in accordance with this section.

Section Referred to in Other Sections

This section is referred to in section 283 of this title.