Remember that a reduction in rank, due to an interservice transfer (IST), can be a good thing sometimes. For the Navy Reserve squadrons, you get to stay in the squadron until you promote to O-5. After O-5 you need a waiver (s) that may or may not get granted. Life in the Navy Reserves is not like the air force where you can't swing a dead cat without hitting an O-6. A reduction in rank, due to an IST can be a great thing. I was about to put on Major in the Corps, did an IST, then was a junior LT. in the Nav.
Only now, years later, does show up to be a blessing. I now will be able to stay in the squadron for my full 20 years of service - and won't be forced out of the squadron due to promotion to O-5. In the end this means an extra 30-40 K a year in salary, agumenting my airline gig, serving my country, hanging out with the brotherhood, drinking beer and flying around the world.
A reduction in rank can be good for some,
Aloha