“A retired member of the Armed Forces who becomes a citizen of a foreign country by naturalization and who voluntarily renounces his or her U.S. citizenship loses the right to retired pay when entitlement to the retired pay depends upon the retirees continued military status.”
This involves *renouncing* US citizenship, which is not the case here.
In this case the person is becoming a dual citizen, retaining US citizenship, while adding U.K. Citizenship.
Right,exactly (see post 31).