Former Michigan State University President Lou Anna K. Simon is getting a retirement severance worth $2.45 million over three years and other perks for formally retiring from the university after stepping down as president 18 months ago in the fallout over the Larry Nassar sexual abuse scandal.

The East Lansing school announced Simon's official retirement late Tuesday, disclosing that she will continue to receive severance payments of $816,666 annually for three years after her retirement Aug. 31. And Simon will be entitled to the payments regardless of the outcome of criminal charges she's facing for allegedly lying to investigators about her knowledge of sexual abuse complaint against Nassar, a former MSU sports medicine and USA Gymnastics doctor.

The agreement also stipulates she won't sue the school or file any complaints or grievances related to her employment or termination.

However, under the retirement agreement, Simon's other perks for being president emeritus "may be withheld" if she's convicted of a crime and a university-commissioned portrait of Simon may not be displayed, according to the contract MSU made public Tuesday.

MSU has agreed to pay for the portrait of its 20th president, whose resignation prompted the tumultuous one-year tenure of former Gov. John Engler, who also resigned under public pressure.

Simon, who was Michigan State's president for 13 years, resigned under pressure in January 2018 after dozens of victims of former campus sports medicine doctor Nassar spoke in open court hearings about the sexual abuse they suffered under his care over a period of nearly two decades. An untold number of the young female gymnasts were molested by Nassar in an MSU sports medicine clinic. Nassar is imprisoned for possessing child pornography and molesting hundreds of young athletes under the guise of treatment.

"Our campus community is continuing its healing, and the Board of Trustees feel the retirement of Dr. Simon is best for the university," MSU board Chairwoman Dianne Byrum said in a statement.

In May, Michigan State's board named Stony Brook University President Samuel Stanley Jr. as the university's new permanent leader. Stanley's first day on the job is Thursday.

When Simon stepped down from MSU's presidency, she stepped into a lifetime of perks as president emeritus that included free tickets to football games at Spartan Stadium and a campus parking pass for all on-campus sports and cultural events.

Simon had a contract that would have paid her $750,000 annually to return to the faculty and it called for a 12-month paid leave for research, the Detroit Free Press reported.

Since November, Simon had been on a voluntary leave of absence after being charged by then-Attorney General Bill Schuette's office for allegedly lying to police about how the university handled sexual abuse complaints about Nassar.

Last week, a lengthy preliminary examination of state prosecutors' evidence against Simon concluded in Eaton County District Court, where a judge may take up to 11 weeks to decide whether Simon should stand trial, the State News reported July 24. She has denied any cover-up by the university.

Simon's retirement deal calls for MSU to pay for the presidential portrait as well as retiree health insurance and other post-employment benefits, such as computer support services.

She'll also be entitled to her pick of reserved tickets for MSU football, basketball, ice hockey and volleyball games, though Simon has "chosen voluntarily to purchase the reserved tickets from the university" instead of getting them for free like former university presidents normally do, according to the agreement.

The retirement agreement allows Simon to retain the title of president emeritus and John A. Hannah distinguished professor emeritus, named after a longtime former MSU president.

Simon, an education administration professor, has worked for Michigan State since 1974, moving up the ranks of the university in a variety of administrative positions before becoming provost in 1993 and president in 2005.

"I appreciate the efforts of the university to facilitate my transition to emeritus status that corresponds to this new chapter," Simon said in a statement released by the university. "I will continue my scholarly pursuits and community engagement, particularly in Traverse City in retirement."

— The Associated Press contributed to this report.