I'm sorry but there is no way Paterno should be able to retire at year's end. He should be fired immediately.
I agree Olivant. The victims' families will (and should) sue for quite some time. Penn State's very existence will be hanging in the balance. I'm sorry that such a drastic result could hurt so many who are innocent in all of this, but this is about as hideous a crime as is possible short of murder.
At the very least, the President, all Board of Trustees, the Provost and other PSU administration, plus every person involved with the football team and the Athletic Dept all need to be fired.