IMF says Strauss-Kahn to get $250,000 in severance

Reuters News
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Posted: May 20, 2011 1:59 PM

WASHINGTON (Reuters) - Former IMF Managing Director Dominique Strauss-Kahn will receive a one-off severance payment of $250,000, but receive far less in future years from pension and related payments, the global lender said on Friday.

Strauss-Kahn, who is facing charges of sexual assault and attempted rape in New York, resigned from the International Monetary Fund on Wednesday. He has denied the charges and his lawyer said he would plead innocent.

"Former Managing Director Strauss-Kahn's annual pension and related entitlements have been grossly over-estimated in media reports this week, and appear based erroneously on a one-off separation payment of $250,000," the IMF said in a statement.

"The annual payments would be far, far less than that amount in subsequent years," it said.

Under the terms of his employment, Strauss-Kahn is due both a severance payment as well as pension payments and an annual "supplemental" retirement allowance that would be reduced if he were to draw income from "regular and continuous employment."

Strauss-Kahn was hired in September 2007 at a salary of $420,930 a year, which has been adjusted annually to keep pace with inflation. He also received a living allowance of $73,350 a year, which was also adjusted annually.

For details on his employment terms see: http://www.imf.org/external/np/sec/pr/2007/pr07245.htm

(Reporting by Tim Ahmann; Editing by Leslie Adler)