Readiness adjustment. Whither the troops?

[morganb]

The manual says that "Lowering military readiness below 100% decreases the effective strength of divisions in the field ... [and] ... frees up manpower and increases the effective population levels of a nation’s provinces in terms of calculating the provinces’ production of resources."

It is clear that when I adjust readiness from 100% to, for example 85%, each division at 10,000 strength will be 8,500 strong after the adjustment.

Does this also mean that the "lost" men actually return to the population?

If not, what happens to them?[8|]