Judge Advocate General of the Navy Vice Adm. Christopher French submitted his official voluntary request to retire at a lower rank
(media.scored.co)
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It all depends how long he served as a 3-star admiral. There's a minimum amount of time they must serve at the higher rank in order to "retire" at the higher rank. That's done, I believe, partly to keep them in. They don't want to promote someone to a higher rank just to have them "retire" the next day or in this case within 3 months. So his retirement pay will be less than if he'd served the minimum amount of time at the higher rank.
But you still get to retire at the higher rank, even if you do so the day after promotion. Only the pay is affected, as you described.
Which makes the "retiring at a lower rank" thing seem super odd.
maybe lower rank of pay and the reporter perhaps got it wrong. IDK.
OK that sounds right - I'm a little rusty on my military protocol (I retried an 0-5 in 96!)