MACKINAW CITY, Mich. — Lou Anna K. Simon, the former Michigan State University president charged with lying about her knowledge of Lawrence G. Nassar’s sexual abuse, will be paid more than $2.4 million as part of a retirement deal announced Tuesday evening by the university.

Dr. Simon served as Michigan State’s president during the years that Dr. Nassar, a university employee, sexually abused hundreds of girls and young women, including some of the world’s best gymnasts.

“Our campus community is continuing its healing, and the Board of Trustees feel the retirement of Dr. Simon is best for the university,” Dianne Byrum, the chairwoman of the university trustees, said in a statement.

Fallout from Dr. Nassar’s abuse continues to haunt Michigan State. The university has approved a $500 million settlement for his victims, seen turnover among top administrators and faced persistent questions about how Dr. Nassar was allowed to continue his crimes for so long.

Dr. Nassar, a faculty member at Michigan State, worked as a doctor for the university and national gymnastics teams. For about 20 years, he abused patients under a false premise of medical care. At emotional sentencing hearings, many of those patients described the abuse and the impact it had had on their lives.

Dr. Nassar is now serving what is effectively a life sentence in prison.

As the scope of Dr. Nassar’s crimes was described at those hearings, scrutiny spread to others at Michigan State, one of the country’s largest public universities.

Dr. Simon, a fixture on Michigan State’s campus since 1974, tried and failed to weather the crisis, and she left her post as president last year under pressure from protesters. At that point, she became a “distinguished professor” and remained a university employee.

Prosecutors later charged Dr. Simon with two felonies and accused her of lying to the police about what she knew of Dr. Nassar’s abuse. Dr. Simon, who appeared in court as recently as last week, has denied any criminal wrongdoing.

Under the terms of Tuesday’s retirement deal, which takes effect at the end of August, she will receive $2.45 million paid over three years. She will also receive medical and dental coverage, the title of “president emeritus” and continued access to football and basketball tickets. In return, Dr. Simon agreed not to sue the university.

University officials declined Tuesday night to make Satish Udpa, the acting president, or any other administrator available for an interview. Attempts to reach Dr. Simon were not immediately successful.

But even in retirement, Dr. Simon may not totally disappear from campus.

The deal announced Tuesday specifies that Michigan State would commission a portrait of Dr. Simon, as is customary with former presidents. But if she is convicted of a felony, the deal says, the college does not have to display the painting.

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