What happens if any enlisted person is reduced at court-martial, or an officer who faces a grade-determination consideration, for conduct as far back as late 2000, and later retires?
10 U. S. Code 1407 sets it out for us.
(f) Exception for Enlisted Members Reduced in Grade and Officers Who Do Not Serve Satisfactorily in Highest Grade Held.—
(2) Affected members.— A member or former member referred to in paragraph (1) is a member or former member who by reason of conduct occurring after October 30, 2000—
(B) in the case of an officer, is retired in a grade lower than the highest grade in which served by reason of denial of a determination or certification under section 1370 of this title that the officer served on active duty satisfactorily in that grade.
This Rule is intended to avoid the "benefit" of the high-three rule.