Pension law means pay cut for college president


Save Story
Leer en español

Estimated read time: Less than a minute

This archived news story is available only for your personal, non-commercial use. Information in the story may be outdated or superseded by additional information. Reading or replaying the story in its archived form does not constitute a republication of the story.

CHICAGO (AP) — The president of Chicago State University is taking a big pay cut to comply with a new state law aimed at reducing Illinois' massive pension shortfall.

The Chicago Sun Times reports (http://bit.ly/1cEh8Fb ) Wayne Watson's new contract reduces his annual salary from $250,008 to $146,363.

The Illinois Legislature in 2012 closed a loophole that allowed college and university employees to retire and draw a pension, then start a new job earning close to the same salary.

The law says anyone receiving pension benefits from the State University Retirement System may not earn more than 40 percent of their highest pre-retirement salary if they go to work at another institution.

Watson retired as chancellor of the City Colleges of Chicago in 2009 and receives an annual pension of $140,000 from City Colleges.

___

Information from: Chicago Sun-Times, http://www.suntimes.com/index

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Most recent Business stories

Related topics

Business
The Associated Press

    STAY IN THE KNOW

    Get informative articles and interesting stories delivered to your inbox weekly. Subscribe to the KSL.com Trending 5.
    By subscribing, you acknowledge and agree to KSL.com's Terms of Use and Privacy Policy.

    KSL Weather Forecast