1. Unless otherwise provided in Office regulations, a court-martial sentence of an enlisted member in a pay grade above E-1, as approved by the convening authority, that includes: (a) A dishonorable or bad-conduct discharge; or (b) Confinement, reduces that member to pay grade E-1, effective on the date of that approval. 2. If the sentence of a member who is reduced in pay grade under subsection 1 is set aside or disapproved, or, as finally approved, does not include punishment named in subsection 1, the rights and privileges of which the member was deprived because of that reduction must be restored to him or her and he or she is entitled to the pay and allowances to which he or she would have been entitled, for the period the reduction was in effect, had the member not been so reduced.
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