I had the same issue when "downgrading" a project from Java 8 to Java 6. The reason was that it was not changed at all places in IntelliJ.
In IntelliJ 13.1.4 I had to change Java and SDK version on the following places not to get this error:
The last bullet was the one that was not updated in my case. Once I changed this, the error disappeared.
~ Answered on 2014-09-24 06:02:38