Pley Money

Fired Secret Service agent remains eligible for up to $2.1 million in taxpayer-funded pension payout
Dania, the prostitute at the center of the Secret Service scandal

Dania, the prostitute at the center of the Secret Service scandal


The disgraced Secret Service supervisors accused of engaging in a cocaine-fueled hooker party on the taxpayer dime will still cash in on lucrative taxpayer-funded pensions.

Three Secret Service agents tasked with protecting President Barack Obama have been terminated since it was revealed that they reportedly caroused with prostitutes and drugs in Colombia.

The Washington Post Thursday identified the two supervisors who have been forced out of the agency. Supervisor David Randall Chaney, 48, has been allowed to retire, while Greg Stokes, the assistant special agent in charge of the K-9 division, has been fired with cause. A third low-level officer has resigned his post.

Chaney will soon be cashing in on a pension worth between $47,000 and $61,000 per year, according to a Washington Free Beacon analysis.

Despite the scandal, it will be nearly impossible to prevent him from collecting on the lucrative sum, according to Michael Spekter, an attorney specializing in defending federal benefit packages.

“Even if you’re fired for misconduct, unless you are found guilty of treason, you can get your retirement benefits that you’ve earned through your years of public service,” he said. “They don’t dock your pensions.”

Spekter has represented hundreds of federal employees during his 30-year career and has never seen a worker lose his pension.

Lawyers for the two agents told the Washington Post each man has between 17 and 18 years of service with the agency.

The Secret Service refused to comment on additional personnel matters. However, several federal law enforcement sources say that agents must have at least GS-14 seniority to qualify as supervisors—standards that also apply to the Secret Service.

Federal law enforcement supervisors working out of the D.C. metro area earn between $105,211 and $136,771. The positions qualify for pensions worth 2.5 percent of average highest salary over a period of three consecutive years, multiplied by years of service.

GS-14 supervisors receive pensions worth between $47,000 and $61,000 annually.

Since Chaney is retiring, he can collect on his pension almost immediately and could collect until age 83—the most recent average lifespan estimates for federal law enforcement officers, according to the Office of Personnel Management.

Over his lifetime, he could receive between $1.65 and $2.15 million in retirement.

Stokes, the fired agent, also qualifies for his pension and will begin collecting at age 62, which would earn him up to $1.3 million over his expected lifetime.

The Washington Free Beacon estimate could be on the low end of the spectrum.

Once in retirement, the agents will continue to enjoy a Cadillac health insurance plan while paying minimal premiums. They will also enjoy annual cost of living adjustments, which increase pensions based upon the consumer price index. Retirees enjoyed a 3.6 percent pay bump in 2012.

Scandals involving government or political employees often raise questions about whether they are entitled to such generous taxpayer-funded benefits.

The debate last surfaced when former Penn State assistant football coach Jerry Sandusky was charged with more than 50 criminal counts of sexually abusing 10 boys over 15 years. Public outcry led the state pension board to review his benefits, though Sandusky will continue to collect state checks until his trial is complete.

Andrew G. Biggs, a former principal deputy commissioner of the Social Security Administration, said pension benefits are viewed as money in the bank, regardless of who is holding the money.

“At some point you have to consider whether the employee earns this money or the employer does,” said Biggs, a scholar at the conservative American Enterprise Institute. “If you get fired in the private sector, you get to keep the money that’s in your 401(k).”

Frank Keegan, a pension expert at State Budget Solutions, said the employer-employee debate is complicated in the public sector.

“It’s the taxpayer’s money, not the government’s,” he said. “If people violate the public trust, taxpayers shouldn’t have to pay the pension costs for the rest of [the employee’s] life.”

Some state and local governments have passed laws that strip public officials and employees of their pensions if they are convicted of felonies or otherwise violate the public trust.

The most notable case to date has been that of the imprisoned former Illinois governor Rod Blagojevich. State Attorney General Lisa Madigan, whom the Democratic governor considered appointing to Barack Obama’s Senate seat, stripped Blagojevich of his $65,000 pension following his corruption conviction in 2011.

Beginning in 2019, however, Blagojevich will begin cashing $13,000 checks from the federal government for his congressional pension. He will also be halfway through his 14-year prison term.

The Secret Service is reviewing the conduct of nearly a dozen agents, as well as forcing those allegedly involved to undergo polygraph tests.

Biggs said the government’s exhaustive investigation digs at the root of the problem: office culture. He said the extensive guest list at the wild party—up to 20 military and Secret Service personnel and an equal number of prostitutes—demonstrates an agency culture akin to the General Service Administration’s lavish Las Vegas trip.

“If you want recourse, you don’t go after their pensions; you make it easier to fire federal employees,” he said. “I don’t know what happened over there, but if we give everybody their due process, we are going to get people paying attention.”

Agency officials have told congressional committees in the House and Senate that more heads are likely to roll—and take their lucrative pensions with them.

Bill McMorris   Email Bill | Full Bio | RSS
Bill McMorris is a staff writer for the Washington Free Beacon. He joins the Beacon from the Franklin Center for Government and Public Integrity, where he was managing editor of Old Dominion Watchdog. He was a 2010 Robert Novak Fellow with the Phillips Foundation, where he studied state pension shortfalls. His work has been featured on CNN, Fox News, The Economist, Colbert Report, and numerous print publications and radio stations. He is a 2008 Cornell University graduate and lives in Alexandria, Va with his wife Teresa and daughter Olivia. His Twitter handle is @FBillMcMorris. His email address is

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