NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2019 AND 2018 AND FOR THE YEAR ENDED DECEMBER 31, 2019
1.
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DESCRIPTION OF THE PLAN
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The following description of the J. Walter Thompson Company Profit Sharing and Matched Savings Plan (the Plan) provides only general information.
Plan participants should refer to the Plan document for a more complete description of the Plans provisions. The Plan was originally adopted on December 31, 1942 and was most recently amended and restated on January 21, 2016 in
accordance with the Internal Revenue Service (IRS) cyclical determination letter procedures for individually designed plans.
General
The Plan is a defined contribution plan sponsored by J. Walter Thompson Company LLC (the Company or JWT), subject to the
provisions of the Employee Retirement Income Security Act of 1974 (ERISA). Bank of America, N.A. (BOA) is the Trustee and Merrill Lynch, Pierce, Fenner & Smith, Incorporated (Merrill) is the Record Keeper
of the Plan.
As discussed in Note 2, effective January 1, 2020, the Company became a participating employer in The Savings & Investment Plan
(SIP), a plan sponsored by an affiliate of the Company. Effective January 15, 2020, the Plan was merged with and into the SIP.
Contributions/Eligibility
Deferred
Contributions
Participating employees may contribute between 1% and 50% of their eligible compensation (up to the annual federal
dollar limit for these contributions) to the Plan as employee elective deferral contributions (Deferred Contributions). For Plan years 2019 and 2018, eligible compensation is limited to $280,000 and $275,000, respectively. The maximum
Deferred Contributions established by the IRS was $19,000 and $18,500 for the years 2019 and 2018, respectively. Deferred Contributions may be made by all eligible U.S. employees of J. Walter Thompson Company LLC, J. Walter Thompson U.S.A., LLC, GTB
Agency, LLC, GTB Stat, LLC, JWT Specialized Communications, LLC, Team Garage LLC, Mirum LLC, Inc., SCPF America LLC, Santo USA LLC and iStrategyLabs, LLC, (each an indirect wholly-owned subsidiary of WPP plc, each a Participating
Employer, and collectively the Participating Employers).
Employees become eligible to participate in the Plan on the
first day of the month following their employment commencement date. The Plan includes an auto-enrollment provision whereby all newly eligible employees are automatically enrolled in the Plan unless they affirmatively elect not to participate in the
Plan. Automatically enrolled participants have their deferral rate set at 3% of eligible compensation and their contributions invested in a designated fund until changed by the participant.
Catch-up Contributions
Participating employees who have attained age 50 may contribute an additional percentage of eligible compensation as Catch-up Contributions (Catch-up Contributions) in accordance with the Internal Revenue Code (IRC). The maximum amount of Catch-up Contributions for the years 2019 and 2018, was $6,000.
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