Section 10
SEC. 10. An officer who is entitled to the benefits of this Act shall be retired or separated from the service in the next higher rank to which, under applicable laws and regulations, he is eligible for promotion, or in such higher temporary rank which he may be holding at the time of his retirement or separation. The gratuity or retirement pay provided in section two, and the separation pay provided in section eight of this Act shall be computed upon the basis of such higher rank in which the officer may be retired or separated.