diff --git a/server/src/main/java/org/elasticsearch/action/admin/indices/template/get/GetComponentTemplateAction.java b/server/src/main/java/org/elasticsearch/action/admin/indices/template/get/GetComponentTemplateAction.java
index 8ef1df3d29a58..3d5b4a73e0a57 100644
--- a/server/src/main/java/org/elasticsearch/action/admin/indices/template/get/GetComponentTemplateAction.java
+++ b/server/src/main/java/org/elasticsearch/action/admin/indices/template/get/GetComponentTemplateAction.java
@@ -16,7 +16,6 @@
 import org.elasticsearch.action.support.master.MasterNodeReadRequest;
 import org.elasticsearch.cluster.metadata.ComponentTemplate;
 import org.elasticsearch.cluster.metadata.DataStreamGlobalRetention;
-import org.elasticsearch.cluster.metadata.DataStreamLifecycle;
 import org.elasticsearch.common.io.stream.StreamInput;
 import org.elasticsearch.common.io.stream.StreamOutput;
 import org.elasticsearch.core.Nullable;
@@ -197,13 +196,7 @@ public XContentBuilder toXContent(XContentBuilder builder, Params params) throws
                 builder.startObject();
                 builder.field(NAME.getPreferredName(), componentTemplate.getKey());
                 builder.field(COMPONENT_TEMPLATE.getPreferredName());
-                componentTemplate.getValue()
-                    .toXContent(
-                        builder,
-                        DataStreamLifecycle.maybeAddEffectiveRetentionParams(params),
-                        rolloverConfiguration,
-                        globalRetention
-                    );
+                componentTemplate.getValue().toXContent(builder, params, rolloverConfiguration);
                 builder.endObject();
             }
             builder.endArray();
diff --git a/server/src/main/java/org/elasticsearch/action/admin/indices/template/get/GetComposableIndexTemplateAction.java b/server/src/main/java/org/elasticsearch/action/admin/indices/template/get/GetComposableIndexTemplateAction.java
index 07ebfe123c98f..aebb9cef12f43 100644
--- a/server/src/main/java/org/elasticsearch/action/admin/indices/template/get/GetComposableIndexTemplateAction.java
+++ b/server/src/main/java/org/elasticsearch/action/admin/indices/template/get/GetComposableIndexTemplateAction.java
@@ -16,7 +16,6 @@
 import org.elasticsearch.action.support.master.MasterNodeReadRequest;
 import org.elasticsearch.cluster.metadata.ComposableIndexTemplate;
 import org.elasticsearch.cluster.metadata.DataStreamGlobalRetention;
-import org.elasticsearch.cluster.metadata.DataStreamLifecycle;
 import org.elasticsearch.common.io.stream.StreamInput;
 import org.elasticsearch.common.io.stream.StreamOutput;
 import org.elasticsearch.core.Nullable;
@@ -196,13 +195,7 @@ public XContentBuilder toXContent(XContentBuilder builder, Params params) throws
                 builder.startObject();
                 builder.field(NAME.getPreferredName(), indexTemplate.getKey());
                 builder.field(INDEX_TEMPLATE.getPreferredName());
-                indexTemplate.getValue()
-                    .toXContent(
-                        builder,
-                        DataStreamLifecycle.maybeAddEffectiveRetentionParams(params),
-                        rolloverConfiguration,
-                        globalRetention
-                    );
+                indexTemplate.getValue().toXContent(builder, params, rolloverConfiguration);
                 builder.endObject();
             }
             builder.endArray();
diff --git a/server/src/main/java/org/elasticsearch/action/admin/indices/template/post/SimulateIndexTemplateResponse.java b/server/src/main/java/org/elasticsearch/action/admin/indices/template/post/SimulateIndexTemplateResponse.java
index 6985e86fb287a..5d0a4a293ea4f 100644
--- a/server/src/main/java/org/elasticsearch/action/admin/indices/template/post/SimulateIndexTemplateResponse.java
+++ b/server/src/main/java/org/elasticsearch/action/admin/indices/template/post/SimulateIndexTemplateResponse.java
@@ -12,7 +12,6 @@
 import org.elasticsearch.action.ActionResponse;
 import org.elasticsearch.action.admin.indices.rollover.RolloverConfiguration;
 import org.elasticsearch.cluster.metadata.DataStreamGlobalRetention;
-import org.elasticsearch.cluster.metadata.DataStreamLifecycle;
 import org.elasticsearch.cluster.metadata.Template;
 import org.elasticsearch.common.io.stream.StreamInput;
 import org.elasticsearch.common.io.stream.StreamOutput;
@@ -121,12 +120,7 @@ public XContentBuilder toXContent(XContentBuilder builder, Params params) throws
         builder.startObject();
         if (this.resolvedTemplate != null) {
             builder.field(TEMPLATE.getPreferredName());
-            this.resolvedTemplate.toXContent(
-                builder,
-                DataStreamLifecycle.maybeAddEffectiveRetentionParams(params),
-                rolloverConfiguration,
-                globalRetention
-            );
+            this.resolvedTemplate.toXContent(builder, params, rolloverConfiguration);
         }
         if (this.overlappingTemplates != null) {
             builder.startArray(OVERLAPPING.getPreferredName());
diff --git a/server/src/main/java/org/elasticsearch/cluster/metadata/ComponentTemplate.java b/server/src/main/java/org/elasticsearch/cluster/metadata/ComponentTemplate.java
index a11ec64dc6f2c..d3d758e110ff3 100644
--- a/server/src/main/java/org/elasticsearch/cluster/metadata/ComponentTemplate.java
+++ b/server/src/main/java/org/elasticsearch/cluster/metadata/ComponentTemplate.java
@@ -163,21 +163,17 @@ public String toString() {
 
     @Override
     public XContentBuilder toXContent(XContentBuilder builder, Params params) throws IOException {
-        return toXContent(builder, params, null, null);
+        return toXContent(builder, params, null);
     }
 
     /**
      * Converts the component template to XContent and passes the RolloverConditions, when provided, to the template.
      */
-    public XContentBuilder toXContent(
-        XContentBuilder builder,
-        Params params,
-        @Nullable RolloverConfiguration rolloverConfiguration,
-        @Nullable DataStreamGlobalRetention globalRetention
-    ) throws IOException {
+    public XContentBuilder toXContent(XContentBuilder builder, Params params, @Nullable RolloverConfiguration rolloverConfiguration)
+        throws IOException {
         builder.startObject();
         builder.field(TEMPLATE.getPreferredName());
-        this.template.toXContent(builder, params, rolloverConfiguration, globalRetention);
+        this.template.toXContent(builder, params, rolloverConfiguration);
         if (this.version != null) {
             builder.field(VERSION.getPreferredName(), this.version);
         }
diff --git a/server/src/main/java/org/elasticsearch/cluster/metadata/ComposableIndexTemplate.java b/server/src/main/java/org/elasticsearch/cluster/metadata/ComposableIndexTemplate.java
index e6e48bfbd46b3..fd1019efd7b78 100644
--- a/server/src/main/java/org/elasticsearch/cluster/metadata/ComposableIndexTemplate.java
+++ b/server/src/main/java/org/elasticsearch/cluster/metadata/ComposableIndexTemplate.java
@@ -259,23 +259,19 @@ public void writeTo(StreamOutput out) throws IOException {
 
     @Override
     public XContentBuilder toXContent(XContentBuilder builder, Params params) throws IOException {
-        return toXContent(builder, params, null, null);
+        return toXContent(builder, params, null);
     }
 
     /**
      * Converts the composable index template to XContent and passes the RolloverConditions, when provided, to the template.
      */
-    public XContentBuilder toXContent(
-        XContentBuilder builder,
-        Params params,
-        @Nullable RolloverConfiguration rolloverConfiguration,
-        @Nullable DataStreamGlobalRetention globalRetention
-    ) throws IOException {
+    public XContentBuilder toXContent(XContentBuilder builder, Params params, @Nullable RolloverConfiguration rolloverConfiguration)
+        throws IOException {
         builder.startObject();
         builder.stringListField(INDEX_PATTERNS.getPreferredName(), this.indexPatterns);
         if (this.template != null) {
             builder.field(TEMPLATE.getPreferredName());
-            this.template.toXContent(builder, params, rolloverConfiguration, globalRetention);
+            this.template.toXContent(builder, params, rolloverConfiguration);
         }
         if (this.componentTemplates != null) {
             builder.stringListField(COMPOSED_OF.getPreferredName(), this.componentTemplates);
diff --git a/server/src/main/java/org/elasticsearch/cluster/metadata/Template.java b/server/src/main/java/org/elasticsearch/cluster/metadata/Template.java
index 74627e27032b4..70440adc4ebbe 100644
--- a/server/src/main/java/org/elasticsearch/cluster/metadata/Template.java
+++ b/server/src/main/java/org/elasticsearch/cluster/metadata/Template.java
@@ -213,18 +213,14 @@ public String toString() {
 
     @Override
     public XContentBuilder toXContent(XContentBuilder builder, Params params) throws IOException {
-        return toXContent(builder, params, null, null);
+        return toXContent(builder, params, null);
     }
 
     /**
      * Converts the template to XContent and passes the RolloverConditions, when provided, to the lifecycle.
      */
-    public XContentBuilder toXContent(
-        XContentBuilder builder,
-        Params params,
-        @Nullable RolloverConfiguration rolloverConfiguration,
-        @Nullable DataStreamGlobalRetention globalRetention
-    ) throws IOException {
+    public XContentBuilder toXContent(XContentBuilder builder, Params params, @Nullable RolloverConfiguration rolloverConfiguration)
+        throws IOException {
         builder.startObject();
         if (this.settings != null) {
             builder.startObject(SETTINGS.getPreferredName());
@@ -254,7 +250,7 @@ public XContentBuilder toXContent(
         }
         if (this.lifecycle != null) {
             builder.field(LIFECYCLE.getPreferredName());
-            lifecycle.toXContent(builder, params, rolloverConfiguration, globalRetention);
+            lifecycle.toXContent(builder, params, rolloverConfiguration, null);
         }
         builder.endObject();
         return builder;
diff --git a/server/src/test/java/org/elasticsearch/cluster/metadata/ComponentTemplateTests.java b/server/src/test/java/org/elasticsearch/cluster/metadata/ComponentTemplateTests.java
index 55575f4a22fc6..b93ccb0f978af 100644
--- a/server/src/test/java/org/elasticsearch/cluster/metadata/ComponentTemplateTests.java
+++ b/server/src/test/java/org/elasticsearch/cluster/metadata/ComponentTemplateTests.java
@@ -291,7 +291,7 @@ public void testXContentSerializationWithRolloverAndEffectiveRetention() throws
             RolloverConfiguration rolloverConfiguration = RolloverConfigurationTests.randomRolloverConditions();
             DataStreamGlobalRetention globalRetention = DataStreamGlobalRetentionTests.randomGlobalRetention();
             ToXContent.Params withEffectiveRetention = new ToXContent.MapParams(DataStreamLifecycle.INCLUDE_EFFECTIVE_RETENTION_PARAMS);
-            template.toXContent(builder, withEffectiveRetention, rolloverConfiguration, globalRetention);
+            template.toXContent(builder, withEffectiveRetention, rolloverConfiguration);
             String serialized = Strings.toString(builder);
             assertThat(serialized, containsString("rollover"));
             for (String label : rolloverConfiguration.resolveRolloverConditions(lifecycle.getEffectiveDataRetention(globalRetention))
@@ -299,13 +299,12 @@ public void testXContentSerializationWithRolloverAndEffectiveRetention() throws
                 .keySet()) {
                 assertThat(serialized, containsString(label));
             }
-            // We check that even if there was no retention provided by the user, the global retention applies
+            /*
+             * A template does not have a global retention and the lifecycle has no retention, so there will be no data_retention or
+             * effective_retention.
+             */
             assertThat(serialized, not(containsString("data_retention")));
-            if (globalRetention.getDefaultRetention() != null || globalRetention.getMaxRetention() != null) {
-                assertThat(serialized, containsString("effective_retention"));
-            } else {
-                assertThat(serialized, not(containsString("effective_retention")));
-            }
+            assertThat(serialized, not(containsString("effective_retention")));
         }
     }
 }
diff --git a/server/src/test/java/org/elasticsearch/cluster/metadata/ComposableIndexTemplateTests.java b/server/src/test/java/org/elasticsearch/cluster/metadata/ComposableIndexTemplateTests.java
index f4e55129f9f93..22c54ff2ad057 100644
--- a/server/src/test/java/org/elasticsearch/cluster/metadata/ComposableIndexTemplateTests.java
+++ b/server/src/test/java/org/elasticsearch/cluster/metadata/ComposableIndexTemplateTests.java
@@ -240,7 +240,7 @@ public void testXContentSerializationWithRolloverAndEffectiveRetention() throws
             RolloverConfiguration rolloverConfiguration = RolloverConfigurationTests.randomRolloverConditions();
             DataStreamGlobalRetention globalRetention = DataStreamGlobalRetentionTests.randomGlobalRetention();
             ToXContent.Params withEffectiveRetention = new ToXContent.MapParams(DataStreamLifecycle.INCLUDE_EFFECTIVE_RETENTION_PARAMS);
-            template.toXContent(builder, withEffectiveRetention, rolloverConfiguration, globalRetention);
+            template.toXContent(builder, withEffectiveRetention, rolloverConfiguration);
             String serialized = Strings.toString(builder);
             assertThat(serialized, containsString("rollover"));
             for (String label : rolloverConfiguration.resolveRolloverConditions(lifecycle.getEffectiveDataRetention(globalRetention))
@@ -248,13 +248,12 @@ public void testXContentSerializationWithRolloverAndEffectiveRetention() throws
                 .keySet()) {
                 assertThat(serialized, containsString(label));
             }
-            // We check that even if there was no retention provided by the user, the global retention applies
+            /*
+             * A template does not have a global retention and the lifecycle has no retention, so there will be no data_retention or
+             * effective_retention.
+             */
             assertThat(serialized, not(containsString("data_retention")));
-            if (globalRetention.getDefaultRetention() != null || globalRetention.getMaxRetention() != null) {
-                assertThat(serialized, containsString("effective_retention"));
-            } else {
-                assertThat(serialized, not(containsString("effective_retention")));
-            }
+            assertThat(serialized, not(containsString("effective_retention")));
         }
     }