Section 2
SEC. 2. When an officer or enlisted man is retired under the provisions of section one above, he shall, at his option, receive a gratuity equivalent to one month of his base and longevity pay on the date of retirement for every year of service, such gratuity to be payable in one lump sum, or an annual retirement pay equivalent to two and a half per cent of the annual base and longevity pay received by him on the date of retirement for each year's active service rendered but not exceeding seventy-five per cent of the total base and longevity pay received by him on the date of retirement, such retirement pay to be payable in equal monthly installments: Provided, That this rate of retirement pay shall not be applicable to officers or enlisted men separated from the service through the action of Classification or Efficiency Boards and Courts-Martial, or as a result of their own misconduct or resignation except as provided in section eight (d) of this Act.