Saga Communications, Inc.
Employees’ 401(k) Savings and Investment Plan
Notes to Financial Statements
Years ended December 31, 2022 and 2021
1. Description of Plan
The following description of Saga Communications, Inc. Employees’ 401(k) Savings and Investment Plan (the “Plan”) provides only general information. Saga Communications, Inc. (the “Company”) is the plan sponsor. Participants should refer to the summary plan description for more complete information.
General
The Plan is a defined contribution plan which includes, as participants, all eligible employees who have completed 90 days of employment, and reached the age of twenty-one. In 2021, in addition to the eligibility requirements mentioned in the previous sentence, employees also had to have been credited with 250 hours of service within the first 90-day period of employment or 1,000 hours of service during a 12-month period in order to become a participant. Beginning in September 2022, all newly hired eligible employees are automatically enrolled to defer 3% of their pay unless they choose a different amount. The Plan is administered by the Company and is subject to the provisions of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”).
Prudential Financial, Inc. (“Prudential”), the former trustee and recordkeeper for the Plan, was acquired by Empower on April 4, 2022. There were no significant changes to the plan as a result of this acquisition. Prudential/Empower was the Plan’s trustee and recordkeeper as of December 31, 2021 and for the period January 1, 2022 to August 31, 2022. Principal Financial Group (“Principal”) is the Plan’s trustee and recordkeeper as of September 1, 2022. The plan administrator has overall responsibility for the operation and administration of the Plan.
The Plan was amended effective June 24, 2021 to update the default investment selection to the Prudential GoalMaker asset allocation program which bases participants’ default allocation on age. This default investment was made in accordance with specific results under which the fiduciaries of the Plan, including the Company, the trustee and the plan administrator, will be relieved of any legal liability for any losses resulting from the default investments. This amendment did not have an impact on the Plan’s financial statements. In September 2022, the default investment selection was changed to RetireView by Principal. The plan sponsor, with information and recommendations from its financial professional, selects the investment options that will be used to populate the RetireView models. These models are then reviewed annually and adjustments are made if necessary.
Restatement
Effective January 1, 2022, the Plan was amended and restated to the IRS approved third submission restatement. On September 1, 2022, a new trustee, and record keeper were appointed and the Plan was transitioned to an amended and restated IRS approved document. Plan assets were transferred to the new trustee into funds comparable to those offered by the previous trustee. The conversion initiated a blackout period beginning August 29, 2022 through September 18, 2022. During the blackout period, funds could not be applied to the employee-selected funds with the trustee or withdrawn from the Plan until the trustee could accurately complete the conversion. During this period, employee contributions continued to be made through payroll deductions, and the contributions were deposited and held in the Plan’s designated conversion account until completion of the blackout period. At the end of the blackout period, such funds were transferred to the investment options requested by each participant. No significant changes were made as a result of the restatement and transition.