Auburn AD Jay Jacobs will reportedly make a whopping $540,000 A YEAR in retirement

It’s because of a loophole in the state’s retirement plan.

Last month, Auburn athletic director Jay Jacobs announced that he will be resigning in June of next year. His tenure will come to an end after nearly 14 years at the helm. On Monday, Decatur Daily reported that Jacobs will make $540,000 a year in retirement.

The exact amount of Jacobs’ annual retirement benefit hasn’t yet been calculated, but Yancey last week said it will be at least $45,000 a month, and potentially more.

“We’re reviewing his contracts to determine the eligibility of certain incentive payments (toward his retirement benefit),” Yancey said. Rewards for winning seasons written into his contract apply to his retirement benefit.

Jacobs’ situation may not be repeated often, but there are a few other possibilities for large retirements in the future.

Jacobs has been Auburn's AD since 2004, but his total career with the school and state spans nearly 30 years.

In 1996, the state implemented a retirement benefits cap of $270,000, but according to the newspaper, since he was already a state employee, he was “grandfathered in,” and is an exception. The state’s retirement plan is known to be a big factor for college admins and coaches and was among the reasons UAB head coach Bill Clark was willing to stick around during the Blazers’ two seasons without football.

AL.com has more on Jacobs:

Payroll records indicate Jacobs earned over $1 million in total compensation in each of the last three years. He was earning $600,000 a year in base salary, with several incentives built into his contract that could increase the base salary to $750,000 per year.

Here’s an excerpt from the letter Jacobs wrote announcing his resignation, as first reported on by The Auburn Plainsman:

"Earlier this week, I informed President Leath that I will step down as Director of Athletics on June 1, 2018, or sooner if my successor is in place," Jacobs wrote in the letter. "I have come to this decision after a lot of prayer, deliberative discussions with my wife, Angie, and with the realization that it is time for a new leader of an incredible Department."

Jacobs' move, which will be effective June 1, 2018, comes after a succession of scandals hit Auburn Athletics over the course of the year, including allegations against two winning softball coaches accused of inappropriate sexual conduct and the arrest of an Auburn basketball legend turned coach accused of bribery and corruption.

If a successor is chosen earlier, Jacobs said he will step down then.

The new report adds that there aren’t many high-earning employees that make as much as Jacobs in retirement. I think it’s safe to say Jacobs won’t mind living in retirement with this kind of cashflow coming in.