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Pension Benefits
 12 Months Ended
Dec. 31, 2023
Retirement Benefits [Abstract]  
Pension Benefits PENSION BENEFITS
The Company previously sponsored a qualified defined benefit pension plan (the “Pension Plan”) that covered approximately 3,100 participants and beneficiaries. Effective January 1, 2006, the Pension Plan was closed to new hires and, effective June 30, 2016, benefit accruals were frozen for substantially all of the participants under the Pension Plan. The Pension Plan was terminated effective November 30, 2023. The Pension Plan was generally non-contributory, but participation required some employees to contribute 3% of pay, as defined, per year. Benefits for participants who were required to contribute to the Pension Plan were based on compensation during plan participation and the number of years of participation. Benefits for the vast majority of participants who are not required to contribute to the Pension Plan are based on years of service and final average pay, as defined. The Company funded the Pension Plan in accordance with the requirements of the Employee Retirement Income Security Act of 1974 (“ERISA”).
In the third quarter of 2023, the Company's Pension Plan made lump-sum payments to certain vested plan participants that were not currently receiving benefit payments and elected to receive lump-sum payments and purchased annuities on behalf of the remaining plan participants. For plan participants who elected lump-sum payments during the election window, payments of $90.0 million were distributed. Group annuity contracts were purchased from Banner Life Insurance Company for $205.7 million for the remaining plan participants for whom Banner irrevocably assumed the pension obligations. These transactions resulted in a full settlement of the Pension Plan and a $70.2 million noncash settlement charge ($55.5 million after-tax) for the unamortized net unrecognized postretirement benefit costs related to the settled obligations recorded in Interest and Other Expenses on the Consolidated Statements of Loss. The Pension Plan continues to have approximately $16.4 million of net assets remaining in the trust after the settlement and was included within Other Assets in the accompanying consolidated balance sheet as of December 31, 2023.
Changes in Fair Value of Plan Assets and Changes in Projected Benefit Obligation for the Pension Plan for the years ended December 31, 2023 and 2022 is presented below.
DOLLARS IN MILLIONS20232022
Fair Value of Plan Assets at Beginning of Year$315.8 $391.7 
Actual Return on Plan Assets7.1 (65.1)
Benefits Paid(100.9)(13.7)
Settlement Benefits(205.7)2.9 
Fair Value of Plan Assets at End of Year16.3 315.8 
Projected Benefit Obligation at Beginning of Year292.2 378.8 
Interest Cost8.4 8.7 
Benefits Paid(100.9)(13.7)
Settlement Benefits(205.7)2.9 
Actuarial Gains6.0 (84.5)
Projected Benefit Obligation at End of Year— 292.2 
Funded Status—Plan Assets in Excess of Projected Benefit Obligation$16.3 $23.6 
Unamortized Amount Reported in AOCI at End of Year$— $(63.1)
Accumulated Benefit Obligation at End of Year$— $289.3 
The measurement dates of the assets and liabilities at end of year presented in the preceding table under the headings, “2023” and “2022” were December 31, 2023 and December 31, 2022, respectively.
The weighted-average discount rate and rate of increase in future compensation levels used to estimate the components of the Projected Benefit Obligation for the Pension Plan at December 31, 2022 were:
2022
Discount Rate5.05 %
Rate of Increase in Future Compensation Levels— 
NOTE 19. PENSION BENEFITS (Continued)
Asset allocations for the Pension Plan at December 31, 2023 and 2022 by asset category were:
ASSET CATEGORY20232022
Corporate Bonds and Notes— %27 %
Bond Exchange Traded Funds— 35 
Cash and Short-term Investments100 37 
Other Assets— 1 
Total100 %100 %
The investment objective of the Pension Plan was to produce current income and long-term capital growth through a combination of equity and fixed income investments which, together with appropriate employer contributions and any required employee contributions, was adequate to provide for the payment of the benefit obligations of the Pension Plan. The assets of the Pension Plan could have been invested in fixed income and equity investments or any other investment vehicle or financial instrument deemed appropriate. Fixed income investments may include cash and short-term instruments, U.S. Government securities, corporate bonds, mortgages and other fixed income investments. Equity investments may include various types of stock, such as large-cap, mid-cap and small-cap stocks, and may also include investments in investment companies, collective investment funds and Kemper common stock (subject to Section 407 and other requirements of ERISA). The Pension Plan did not invest in Kemper common stock.
The trust investment committee for the Pension Plan, along with its third party fiduciary advisor, periodically reviewed the performance of the Pension Plan’s investments and asset allocation. Several external investment managers managed the equity investments of the trust for the Pension Plan. Each manager was allowed to exercise investment discretion, subject to limitations, if any, established by the trust investment committee for the Pension Plan. All other investment decisions were made by the Company, subject to general guidelines as set by the trust investment committee for the Pension Plan.
The Company determined its Expected Long Term Rate of Return on Plan Assets based primarily on the Company’s expectations of future returns, with consideration to historical returns, for the Pension Plan’s investments, based on target allocations of the Pension Plan’s investments.
The fair values of pension plan assets are estimated using the same methodologies and inputs as those used to determine the fair values for the respective asset category of the Company. These methodologies and inputs are disclosed in Note 13, “Fair Value Measurements,” to the Consolidated Financial Statements.
Fair value measurements for the Pension Plan’s assets at December 31, 2023 are summarized below.
DOLLARS IN MILLIONSQuoted Prices
in Active Markets
for Identical
Assets
(Level 1)		Significant
Other
Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)		Measured at Net Asset ValueFair Value
Equity Securities:
Other Equity Interests:
Limited Liability Companies and Limited Partnerships
— — — 0.1 0.1 
Short-term Investments16.2 — — — 16.2 
Total$16.2 $— $— $0.1 $16.3 
NOTE 19. PENSION BENEFITS (Continued)
Fair value measurements for the Pension Plan’s assets at December 31, 2022 are summarized below.
DOLLARS IN MILLIONSQuoted Prices
in Active Markets
for Identical
Assets
(Level 1)		Significant
Other
Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)		Measured at Net Asset ValueFair Value
Fixed Maturities:
U.S. Government and Government Agencies and Authorities
$40.1 $— $— $— $40.1 
States and Political Subdivisions
— 0.1 — — 0.1 
Foreign Governments— 0.4 — — 0.4 
Corporate Bonds and Notes
— 45.4 — — 45.4 
Equity Securities:
Other Equity Interests:
Bond Exchange Traded Funds
111.1 — — — 111.1 
Limited Liability Companies and Limited Partnerships
— — — 1.8 1.8 
Short-term Investments116.1 — — — 116.1 
Receivables and Other0.8 — — — 0.8 
Total$268.1 $45.9 $— $1.8 $315.8 
The components of Comprehensive Pension (Income) Expense for the Pension Plan for the years ended December 31, 2023, 2022 and 2021 were:
DOLLARS IN MILLIONS202320222021
Service Cost Earned During the Year$— $— $— 
Interest Cost on Projected Benefit Obligation8.4 8.7 7.2 
Expected Return on Plan Assets(7.9)(7.4)(9.5)
Amortization of Prior Service Cost0.4 0.7 — 
Amortization of Actuarial Loss— 1.8 2.9 
Settlement Expense70.2 — — 
Pension Expense Recognized in Consolidated Statements of (Loss) Income71.1 3.8 0.6 
Unrecognized Pension Loss Arising During the Year— (12.0)(6.0)
Prior Service Cost Arising During the Year— — 18.3 
Amortization of Prior Service Cost— (0.7)— 
Amortization of Accumulated Unrecognized Pension Loss— (1.8)(2.9)
Comprehensive Pension (Income) Expense $71.1 $(10.7)$10.0 
The weighted-average discount rate, service cost discount rate, interest cost discount rate, rate of increase in future compensation levels and expected long-term rate of return on plan assets used to develop the components of Pension Expense for the Pension Plan for the years ended December 31, 2023, 2022 and 2021 were:
202320222021
Weighted-average Discount Rate5.05 %2.89 %2.56 %
Service Cost Discount RateN/AN/A2.41 
Interest Cost Discount Rate4.92 2.35 1.90 
Rate of Increase in Future Compensation LevelsN/A3.40 3.40 
Expected Long Term Rate of Return on Plan Assets3.79 2.08 2.70 
The Company did not contribute to the Pension Plan in 2021, 2022 or 2023.
NOTE 19. PENSION BENEFITS (Continued)
The Company also sponsors a non-qualified supplemental defined benefit pension plan (the “Supplemental Plan”). Benefit accruals for all participants in the Supplemental Plan were frozen effective June 30, 2016. The unfunded liability related to the Supplemental Plan was $21.8 million and $22.0 million at December 31, 2023 and 2022, respectively. Pension expense for the Supplemental Plan was $1.0 million, $0.8 million, and $0.7 million for the years ended December 31, 2023, 2022 and 2021, respectively. There was an actuarial loss of $0.7 million before taxes in 2023, and actuarial gains of $4.8 million and $1.3 million before taxes included in Other Comprehensive (Loss) Income for the years ended December 31, 2022 and 2021, respectively.
The Company also sponsors several defined contribution benefit plans covering most of its employees. The Company made contributions to those plans of $27.5 million, $30.6 million and $28.9 million in 2023, 2022 and 2021, respectively.