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Check that--I just found a Boston Globe piece that indicates Sandusky was an assistant professor, no tenure. Thus, he could have been fired in 1998 has PSU chosen to do so. Even tenured faculty can be fired, for cause, and improprieties with minors would indeed be cause for termination. Instead he was allowed to "retire," was given the courtesy title of "professor emeritus," as well as keys, etc.
Read the article further. He had the office as part of his retirement. He wasn't higher ranking professor, but he was entitled to the office.
He could have been fired, but there were no criminal charges in 1998, remember? Guess who's decision that was.