Can an officer get reduced in rank and still be allowed to stay on active duty?

It’s possible to reduce an officer to his permanent rank, where he/she can continue to serve, but I don’t it has happened since WWII

I didn't see this so, hope not a repeat: Another weird case is when an enlisted service member is commissioned, then won't get promoted to O4, has less than 18yrs of total service and not eligible to retire, may revert to E7 or highest enlisted grade held and continue to serve until eligible for retirement.

Knew an O-5 reduced to O-4 for off duty 'problems' regarding personal debts. No booze, no adultery just spend, spend and spend. Had over 18 years, stayed for 22 and retired as an O-5 because of ROPA.

Depends on the circumstances. An officer serving in a billet of a higher rank might wear the uniform of the minimum required rank while hoping to promote into that rank later. Breveting was a normal process in the past, so a brigade commander might be a 1-star general, but a lack of officers might have an O-5 doing it. Later, when manning allows it, the person breveted goes back to their actual rank. It doesn't happen as much these days, but an Engineering department head on my first ship was a LtCdr (O-4). When he left the ship, I saw he was wearing LT stripes (O-3). I discovered he was frocked to the rank. I did not find out if he was passed over for promotion or what.

As a squad leader, I actually had a cadet get kicked out of the Academy and arrived to my unit as a specialist. It was the craziest thing because his military issued CAC still said 2LT. I had to take him to DEERS to get it changed. I do have a bunch of 31E buddies who've worked at various prisons and said when officers are in prison they are no longer addressed by their previous rank. If someone has encountered an issue that is not necessarily illegal but against the good order and discipline of the military (i.e. lieutenant sleeping with a Soldier), are usually shown the door.

Law and Service policy determine how long an officer must serve in a grade to retire in that grade.
I think it's normally 3 years. Retiring before the 3 years is up means the officer would retire at the lower grade. I've most often seen it happen when very senior officers get into serious trouble and retire at a lower grade in lieu of court martial.


Update: Please see Maj Daniel Pempel comments. He is more informed than me. Appreciate his input and edited my comments accordingly.

Some officers were reduced in rank after both World Wars due to drawdowns in the size of the military. When it comes to disciplinary infractions the theory is that if an officer did something severe enough to merit reducing him in rank, the fact the officer committed the offense is sufficient evidence that the officer is not suitable to remain in service. The result is that if an officer commits an serious offense which does not merit sending him to prison, he is "encouraged" to either resign or retire immediately. So the answer to your question is "No".

This doesn’t happen. Many years ago some combat promoted officers had to revert back to enlisted ranks but I suspect it has been over 50 years since that last happened. For poor conduct an officer can be retired at the rank last honorably served. I’ve seen this happen a few times.

Short answer-it’s possible to reduce an officer in rank. But super-duper highly unlikely that if done they will stay after and serve.

I have heard and personally witnessed 1LT/CPT who were reduced and were retained; but it has to be a minor offense they got embroiled into and not primary offender and they go before a board to retain. All will normally get passed over or QMPd in time I am sure-but no data available outside halls of HRC to confirm.

If an officer is found guilty of a high crime, they will lose thier commission and be reduced to PV1 while serving at USDB and when released dishonorably discharged.

If remanded to Civil authorities, they are dishonorably discharged and lose commission usually after civil proceedings concluded but if 1st degree felony will be processed out prior to being remanded to civilian custody.

A whole bunch to unpack here and some would be “it depends” on the command and of course a JAG would know more about current precedents that would definitely be different than 80’s and before examples. Our Army has changed dramatically since then

Yes, until he or she gets passed over for promotion, which will happen.