An early retirement agreement between University of Arkansas at Pine Bluff Chancellor Lawrence A. Davis, Jr. and the University of Arkansas System was finalized Tuesday.

An early retirement agreement between University of Arkansas at Pine Bluff Chancellor Lawrence A. Davis, Jr. and the University of Arkansas System was finalized Tuesday.

Davis announced his resignation from the position of Chancellor that he has held for more than 20 years on March 22. The resignation will be effective May 25.

“Chancellor Davis expressed his desire to retire early in the last several weeks,” U of A System director of communications Ben Beaumont said Friday. “He had two years remaining on his contract and the U of A System has worked out an early retirement agreement with him. As part of the agreement Chancellor Davis will be paid one year of his current salary, which is $190,000, and he will give up his tenure at the university.”

“[U of A System] President [Donald R.] Bobbitt has been in discussions with Chancellor Davis for several weeks about his early retirement,” Beaumont said Friday.

According to the text of the agreement, the U of A System will pay Davis the $190,000 minus the required withholdings and deductions on June 30.

The U of A System agreed to pay the full costs to the University of Arkansas Medical Benefit Plan for up to six years of “Classic” medical coverage for Davis and his wife, running from June 1, 2012, through May 31, 2018, with the understanding that the costs will not exceed $20,000 and that Davis will be responsible for any costs in excess of that amount.

Similarly the U of A System agreed to pay the full costs for dental coverage for Davis and his wife for six years beginning June 1, 2012, and extending through May 31, 2018, with the total amount of the costs not exceeding $2,500 and Davis responsible for any costs in excess of that amount.

Davis and his family may remain in the Chancellor’s residence until Dec. 31 if they choose to, according to the terms of the agreement.

The U of A System asked Davis to submit a written resignation of his position as Chancellor, a written relinquishment of all rights under his employment agreement and a written relinquishment of his tenure rights in the UAPB Department of Mathematics.

The agreement stipulated that Davis had to announce his resignation on or before March 28.

Davis will be paid for unused annual leave up to 240 hours as required by state law.

Davis agreed to make no disparaging remarks about the U of A System Board of Trustees, the University of Arkansas, UAPB, the University of Arkansas Division of Internal Audit and its employees, or any other current or former trustees, officers, officials, employees, representatives and agents of the Board and the University, including U of A System President Donald R. Bobbitt, Director of Internal Audit Jacob Flournoy and Regional Audit Manager Kristy Walters.

University officials agreed to make no disparaging remarks or comments about Davis.

A U of A System audit released in February investigated allegations of fraud and abuse of funds at the Harrold Dorm Complex and Living Learning Center between July 1, 2008, and June 30, 2011. Four UAPB employees, including Davis’ secretary, were fired as a result of the findings. A criminal investigation by the Arkansas State Police is ongoing.

Beaumont said that the audit report will be formally presented to the Audit Committee of the U of A System Board of Trustees during a meeting Thursday afternoon in Little Rock.