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I think it's always worked like that. Just as when merging the highest-rank leader takes over.
 
The reassigned leaders pool, however, seems to be working differently in 1.06
Before when you reassigned leaders they went to the bottom of their rank or skill group and it was easy to refind them. Now they seem to get put back into a big unstructured mess. So if you are looking for a def. Lt Gen that had 88 exp and reassigned him, refinding him is close to impossible unless you remember his name.

Has anyone figured out this leader pool change?
 
Well, you can always look him up in the ledger (sort by exp.) to get his name. It is less convenient though.
 
In my last 1.05 game (playing as USA) I had MacArthur "involuntarily transfer" to commanding a loaned British corp when I strategicly redeployed the last division under his command. Which meant I couldn't re-assign him to one of my own corps and I permanently lost him when they took the corp back. Not good to hear this is likely to repeat under 1.06.
 
dtravel said:
In my last 1.05 game (playing as USA) I had MacArthur "involuntarily transfer" to commanding a loaned British corp when I strategicly redeployed the last division under his command. Which meant I couldn't re-assign him to one of my own corps and I permanently lost him when they took the corp back. Not good to hear this is likely to repeat under 1.06.
It is not that serious an issue since you can avoid it if you are aware of it; just assign some worthless Maj. Gen. before SRing the last division.