It seems “The Donald” doesn’t do much for his employees. The billionaire real estate mogul turned reality television star turned presidential candidate offers a surprisingly stingy 401(k).
Citing 5500 filings, Bloomberg reports his matching contributions are actually more generous than average. If you contribute 6 percent of your salary, Trump will kick in 4.5 percent.
“But there’s a catch,” according to the news service reports. “You can’t even join the plan until you spend a year as a Trump employee. Call it an apprenticeship. Then, if you want that matching contribution, you have to wait until the end of a calendar year. Leave—or get fired—in October, and you get nothing.”
Even if you stay, it adds, Trump’s contribution doesn’t completely belong to you for six years.
“That vesting schedule is the slowest allowed under U.S. law. And if you worked for Trump from March 1, 2009 through June 30, 2012, you were out of luck entirely. Trump, who claimed an $8.7 billion net worth last month, suspended all employer contributions to 401(k)s for more than three years.”
Under Bloomberg’s rating system for 401(k) plans, Trump scores a 30 out of a possible 100, lower than all but one of the top 50 companies by market capitalization. It scored one point back in 2011 when Trump wasn’t matching contributions at all.
The plan scores a 59 under the rating system at BrightScope, which calls the Trump plan “below average” for its peer group. It’s far from the worst, though.
The details are revealed in the forms filed annually with the U.S. Department of Labor by the Trump Payroll Corp. 401(k)/Profit Sharing Plan, and they’re worthwhile reading for anyone trying to analyze the business success that’s the foundation of the Trump campaign.
As of the end of 2013 (the most recent information available) the Trump retirement plan had 1,136 participants with account balances totaling $22.9 million, or an average of just over $20,000.
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With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of Investment Advisor magazine and retirement editor of ThinkAdvisor.com. Sullivan is also the former editor of Boomer Market Advisor and Bank Advisor magazines, and has a background in the insurance and investment industries in addition to his journalism roots.
