The chevrons do in fact go down, I'm busy playing the RoP mod. Had a bunch of 3 silver chevron hoplites. Now they are all at 1 silver. They seem to lose one with each retraining, even if they just get a couple of new guys. Although they do lose much more when the unit is near decimation.
Still you can get more experianced troops quicker this way. The whole army gets better rather than the few units that your merging everything into.
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