On top of his standard pension, Mike Jeffries had been receiving lifetime bonus payments totalling about $1m (£801k) a year.
But in October, the BBC revealed claims of exploitation by young men recruited for sex events while he was boss.
A lawsuit then accused the US retailer of funding a sex-trafficking operation.
The brand told the BBC it has now suspended these extra retirement payments to Mr Jeffries.
When he was CEO his travel budget was over $1M per year. I always wondered about why he needed to travel so much, and how he could still do CEO stuff too. He was legendary for his flashy cars, wanton disregard for traffic laws, hatred of anyone he deemed unattractive (to the point of firing them), and insistence you listen to hip hop all day while you worked.