3/8/2014 2:47:00 PM Pension law means pay cut for college president
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.