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Postretirement Benefits Other Than Pensions
 12 Months Ended
Dec. 31, 2023
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]  
Postretirement Benefits Other Than Pensions 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.
Other Postretirement Benefit Plan, Defined Benefit  
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]  
Postretirement Benefits Other Than Pensions POSTRETIREMENT BENEFITS OTHER THAN PENSIONS
Kemper and Infinity Property and Casualty Corporation (“Infinity”) sponsor other than pension postretirement employee benefit plans (“OPEB”) that together provide medical, dental and/or life insurance benefits to approximately 400 retired and 500 active employees.
Kemper has historically self-insured the benefits under the Kemper OPEB Plan. The Kemper medical plan generally provides for a limited number of years of medical insurance benefits at retirement based on the participant’s attained age at retirement and number of years of service until specified dates and generally has required participant contributions, with most contributions adjusted annually. On December 30, 2016, Kemper amended the Kemper OPEB Plan and, effective December 31, 2016, no longer offers coverage to post-65 Medicare-eligible retirees and Medicare-eligible spouses under the self-insured portion of its coverage. Rather, beginning on January 1, 2017, the Kemper OPEB Plan offers access to a private, third-party Medicare exchange and provides varying levels of a Company-determined subsidy via health reimbursement accounts to certain Medicare-eligible retirees and spouses in order to help fund a portion of the participants’ cost. Further, the amendment eliminates the requirement for such participants to contribute to the Kemper OPEB Plan.
In conjunction with the amendment, the Company recorded a pre-tax reduction to its Accumulated Postretirement Benefit Obligation of $11.0 million through Other Comprehensive (Loss) Income. This prior service credit is being amortized into income over the remaining average life of the Kemper OPEB Plan’s participants.
Changes in Fair Value of Plans’ Assets and Changes in Accumulated Postretirement Benefit Obligation for the years ended December 31, 2023 and 2022 were:
DOLLARS IN MILLIONS
20232022
Fair Value of Plans’ Assets at Beginning of Year$— $— 
Employer Contributions1.0 1.0 
Plan Participants’ Contributions0.3 0.3 
Benefits Paid(1.3)(1.3)
Fair Value of Plan Assets at End of Year— — 
Accumulated Postretirement Benefit Obligation at Beginning of Year8.1 11.2 
Service Cost0.1 0.2 
Interest Cost0.4 0.2 
Plan Participants’ Contributions0.3 0.3 
Benefits Paid(1.3)(1.3)
Actuarial Gain(0.1)(2.5)
Accumulated Postretirement Benefit Obligation at End of Year7.5 8.1 
Funded Status—Accumulated Postretirement Benefit Obligation in Excess of Plans’ Assets$(7.5)$(8.1)
Unamortized Actuarial Gain Reported in AOCI at End of Year$13.9 $16.9 
The measurement dates of the assets and liabilities at end of year in the preceding table under the headings “2023” and “2022” were December 31, 2023 and December 31, 2022, respectively.
NOTE 20. POSTRETIREMENT BENEFITS OTHER THAN PENSIONS (Continued)
The weighted-average discount rate and rate of increase in future compensation levels used to develop the components of the Accumulated Postretirement Benefit Obligation at December 31, 2023 and 2022 were:
20232022
Discount Rate4.92 %5.08 %
Rate of Increase in Future Compensation Levels2.20 2.20 
The assumed health care cost trend rate used in measuring the Accumulated Postretirement Benefit Obligation at December 31, 2023 was 6.7% for 2024, gradually declining to 4.7% in the year 2029 and remaining at that level thereafter for medical benefits and 8.0% for 2024, gradually declining to 4.8% in the year 2030 and remaining at that level thereafter for prescription drug benefits. The assumed health care cost trend rate used in measuring the Accumulated Postretirement Benefit Obligation at December 31, 2022 was 6.0% for 2023, gradually declining to 4.8% in the year 2029 and remaining at that level thereafter for medical benefits and 6.7% for 2023, gradually declining to 4.8% in the year 2030 and remaining at that level thereafter for prescription drug benefits.
The components of Comprehensive OPEB (Income) Expense for the years ended December 31, 2023, 2022 and 2021 were:
DOLLARS IN MILLIONS202320222021
Service Cost Earned During the Year$0.1 $0.2 $0.3 
Interest Cost on Accumulated Postretirement Benefit Obligation0.4 0.2 0.1 
Amortization of Prior Service Credit(1.3)(1.3)(1.3)
Amortization of Accumulated Unrecognized OPEB Gain(1.8)(1.8)(1.7)
OPEB Income Recognized in Consolidated Statements of Loss
(2.6)(2.7)(2.6)
Unrecognized OPEB Gain Arising During the Year
(0.1)(2.5)(1.8)
Amortization of Prior Service Credit1.3 1.3 1.3 
Amortization of Accumulated Unrecognized OPEB Gain1.8 1.8 1.7 
Comprehensive OPEB Expense (Income)
$0.4 $(2.1)$(1.4)
The Company estimates that OPEB Expense for the year ended December 31, 2024 will include income of $2.8 million resulting from the amortization of the related accumulated actuarial gain and prior service credit included in AOCI at December 31, 2023.
The weighted-average discount rate and rate of increase in future compensation levels used to develop OPEB Expense for the years ended December 31, 2023, 2022 and 2021 were:
202320222021
Weighted-average Discount Rate5.11 %2.56 %1.99 %
Service Cost Discount Rate5.12 2.79 2.06 
Interest Cost Discount Rate5.03 1.97 1.19 
Effective Rate for Interest on Service Cost5.04 2.54 — 
Rate of Increase in Future Compensation Levels2.20 2.20 2.20 
The Company expects to contribute $0.9 million, net of the expected Medicare Part D subsidy, to its OPEB Plan to fund benefit payments in 2024.
NOTE 20. POSTRETIREMENT BENEFITS OTHER THAN PENSIONS (Continued)
The following benefit payments (net of participant contributions), which consider expected future service, as appropriate, are expected to be paid:
DOLLARS IN MILLIONSYears Ending December 31,
202420252026202720282029-2032
Estimated Benefit Payments:
Excluding Medicare Part D Subsidy$0.9 $0.9 $0.9 $0.8 $0.7 $3.0 
Expected Medicare Part D Subsidy— — — — — — 
Net Estimated Benefit Payments$0.9 $0.9 $0.9 $0.8 $0.7 $3.0